How does Sage BusinessWorks calculate the numbers on the Form 940?

The Form 940 uses figures from employee payroll checks to calculate the numbers that appear on the form. Taxable deductions and other pays also influence these figures.

• For details, check out how Sage BusinessWorks calculates the the Unemployment (940) figures 

The 940 form is showing prior year

• The 940 form is an annual tax form. Aatrix updates the form December 20 of the current tax year
• If you print the 940 before this date, the current year totals will show on the prior year tax form

How can I reconcile the numbers on the Form 940?

There’s no specific report that gives the FUTA wages and withholding by employee.  Create a Custom Export in Sage Business and export your employee FUTA wages and withholding.

• Check out how to reconcile 940 wages and liability for step-by-step instructions.

The Box 4 of the Form 940 shows a negative amount

A negative amount will show in Box 4 on the 940 form under these circumstances

• An Other Pay is FUTA taxable, but the Add to gross box isn’t checked
• A company-paid deduction is FUTA taxable 

To correct

1. Add the negative amount in Line 4 to the Box 3 wages
2. Zero out the negative amount in Line 4

What if I need to edit some of the amounts on the Form 940?

You can edit or adjust the numbers manually on the form in Enhanced Tax Reporting. Any field in blue is an editable field.