Year-end 940 Adjustments
Overview
Form 940 adjustments are corrections made at year-end when an employer owes additional Federal Unemployment Tax (FUTA) due to line 10 adjustments. These adjustments typically occur when state unemployment taxes weren't fully paid or when FUTA credit reductions apply. Use this process to generate the tax payment for any balance due.
How to Generate a 940 Tax Payment for Year-end Adjustments on Form 940
This guide will walk you through the process of generating a 940 tax payment for year-end adjustments on Form 940 using ProPay.
Prerequisites
- ProPay software installed
- A balance due on Form 940 because of adjustments on line 10
Step-by-step Instructions
1. Add a 940 Adjusting Entry
- Open ProPay.
- Go to Tax Filing > Tax File > Add.
- Add a 940 Adjusting entry as shown in the image provided by your system administrator.
2. Generate the Tax Payment
- Go to Paychecks > Print Checks (for Selected Employees).
- Enter the last pay date of the year.
- Click Continue.
- Do not select any employees.
- Click Continue again to force "Printing of Tax checks, or Electronic Tax Payments."
Important Notes
- This process assumes you have a balance due on Form 940 because of adjustments on line 10.
- Ensure you have the correct permissions to perform these actions in ProPay.
- Double-check all entered information for accuracy before proceeding.
Troubleshooting
If you encounter any issues while following these steps, try the following:
- Verify that you're using the latest version of ProPay.
- Check that you have appropriate permissions to access the Tax File.
- Ensure the last pay date of the year has been correctly entered.
- Contact your system administrator if the issue persists.