Issue/Symptom/Question

Our Payroll user received an IRS notice related to calculation changes made on our Form 941 for the tax period of December 31, 2022. We would like to understand how the IRS calculations differ. 

Applies To

Penta for Windows

Payroll > Social Security and Medicare calculations

Resolution/Fix/Answer

This typically is a result of Manual Checks processed with incorrect Social Security and Medicare amounts, which were not subsequently self-adjusted. Another possibility is any Other Compensation entries with no Social Security and Medicare amounts, which were not subsequently self-adjusted. Other Compensation entries are usually entered after the last payroll of the year, and thus they are not self-adjusted in a subsequent payroll.

If you are still unable to reconcile your 941 reporting with the IRS calculations, please log a Service Desk Ticket and reference this article. 

Please provide the following information in your Service Desk ticket:

• IRS Letter with information on the reporting discrepancy
• Payroll Period
• Reports used to calculate the 941 tax payments