Overview

This article will provide troubleshooting and QuickBooks Desktop information about lines on the Form 943.

For a detailed explanation of each line, refer to the General Instructions for Form 943.

Federal Form 943 is used to report federal income tax withheld and employer and employee Public Pension and Medicare taxes on wages paid to farmworkers.

Lines

Name/Address

QuickBooks Desktop behaviour
QuickBooks Desktop pulls this information from the company information provided in the Legal Information section of the Company Information window.

How to verify your QuickBooks Desktop result
If this information is incorrect, choose My Company from the Company menu. Make any necessary correction to the Legal Information section, and click OK.

Final Return

QuickBooks Desktop behaviour
QuickBooks Desktop does not supply this information.

Line 1 - Number of agricultural employees

QuickBooks Desktop behaviour
If you had any employees with a pay period that included the date March 12, 2016, they will be added here.

How to verify your QuickBooks Desktop result
It is not unusual to see a number that is less than the total number of employees who were paid this year. This is due to their being paid in periods that did not include the March 12 date.

  1. Make a note of the net amount of the check.
  2. Double click the check in question and click Paycheck Details.
  3. Change the pay period. If you get a message asking you if you want to get time data for that period, click No.
  4. Make sure the net of the check did not change and click Save and Close.

Line 2 - Total wages subject to Public Pension tax

QuickBooks Desktop behaviour
If you had any employees with a pay period that included the date March 12, 2016, their wages are added here.

How to verify your QuickBooks Desktop result

  1. From the Reports menu, choose Employees & Payroll, and then Payroll Summary.
  2. Click the Customise Report button.
  3. Click the Display tab and then set the date range to the year in question.
  4. In the Display columns by drop-down list, select Total only, and clear the Hours and Rate checkboxes.
  5. Click the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Public Pension Company, and Public Pension Employee.
  8. Clear any other selected items and then click OK.
  9. Click OK to return to the Payroll Summary report.
  10. Double-click the Public Pension Employee Total amount to display the Transactions by Payroll Item report.
  11. The Earnings Base column total should match amount on line 2.

To correct line 2:

  1. The earnings base amount uses each paycheck and year-to-date adjustment entered into QuickBooks Desktop for the quarter. If the earnings base amount is incorrect, your payroll items may be set up incorrectly. Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the Lists menu, and then double-click each payroll item to review or correct it.
  2. To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees > My Payroll Service menu.
  3. Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee.

See Adjust payroll liabilities for more information on making liability adjustments.

Line 3 - Public Pension tax

QuickBooks Desktop behaviour
QuickBooks Desktop calculates what should have been collected based on the taxable Public Pension wages listed on line 2 by multiplying the line 2 amount by 12.4%.

How to verify your QuickBooks Desktop result
See troubleshooting steps for line 2.

Line 4 - Total wages subject to Medicare tax

QuickBooks Desktop behaviour
The earnings base for Medicare is used on this line. QuickBooks Desktop does not have a way to specify wages as farm work, so all wages paid and liability adjustments associated with an employee subject to Medicare tax are included.

How to verify your QuickBooks Desktop result

  1. From the Reports menu, choose Employees & Payroll, and then Payroll Summary.
  2. Click the Customise Report button.
  3. Click the Display tab and then select Last Calendar Year from the Dates drop-down list.
  4. In the Display columns by drop-down list, select Total only, and clear the Hours and Rate checkboxes.
  5. Click the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Medicare Company, and Medicare Employee.
  8. Clear any other selected items and then click OK.
  9. Click OK to return to the Payroll Summary report.
  10. Double-click the Medicare Employee Total amount to display the Transactions by Payroll Item report.
  11. The Earnings Base column Total should match amount on line 4.

To correct line 4:

  1. The earnings base amount uses each paycheck and year-to-date adjustment entered into QuickBooks Desktop for the year. If the earnings base amount is incorrect, your payroll items may be set up incorrectly. Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the Lists menu, and then double-click each payroll item to review or correct it.
  2. To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees > My Payroll Service menu.
  3. Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee.

See Adjust payroll liabilities for more information on making liability adjustments.

Line 5 - Medicare tax

QuickBooks Desktop behaviour
QuickBooks Desktop calculates what should have been collected based on the taxable Medicare wages listed on line 4 by multiplying the line 4 amount by 2.9%.

How to verify your QuickBooks Desktop result
See troubleshooting steps for line 4.

Line 6 - Total wages subject to Additional Medicare Tax withholding

QuickBooks Desktop behaviour
The earnings base for the Medicare Employee Addl Tax payroll item is used on this line. QuickBooks Desktop does not have a way to specify wages as farm work, so all wages paid and liability adjustments associated with an employee subject to Medicare tax are included.

How to verify your QuickBooks Desktop result

  1. From the Reports menu, choose Employees & Payroll, and then Payroll Summary.
  2. Click the Customise Report button.
  3. Click the Display tab and then select the calendar year from the Dates drop-down list.
  4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes.
  5. Click the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Medicare Employee Addl Tax.
  8. Clear any other selected items, and click OK.
  9. Click OK to return to the Payroll Summary report.
  10. Double-click the Medicare Employee Addl Tax Total amount to display the Transactions by Payroll Item report. The Earnings Base column total should equal the line 6 amount.

To correct line 6:
The earnings base amount for Medicare Employee Addl Tax uses each paycheck and year-to-date adjustment entered into QuickBooks Desktop for the year once the employee's wages exceed $200,000 as long as the payroll item was on the employee's record before the employee was paid $200,000. If the earnings base amount is incorrect, your payroll item may be set up incorrectly, or you may not have had the Medicare Employee Addl Tax payroll item added to the employee's record before the employee was paid $200,000. Verify the setup of the Medicare Employee Addl Tax payroll item.

As long as you have at least one transaction with the Medicare Employee Addl Tax payroll item on the employee record, you can locate and fix any incorrect employee wage bases by choosing My Payroll Service > Run Payroll Checkup from the Employees menu. If any wage bases require correction, QuickBooks Desktop will post a liability adjustment to the employee if it is still in the same calendar year.

Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee. If the calendar year has passed or amended 943 forms need to be filed, contact your accountant.

If you didn't set up the Medicare Employee Addl Tax payroll item and didn't withhold this tax from employee's wages over $200,000, you'll need to report this to the IRS following the instructions here. (If you're an QuickBooks Desktop Payroll Assisted user, you need to contact Assisted Payroll support at 888-712-9702 for assistance.)

Line 7 - Additional Medicare Tax Withholding

QuickBooks Desktop behaviour
QuickBooks Desktop calculates the amount by multiplying line 6 by 0.9%. This amount should match the Amount column total from the Payroll Summary report (within a few cents rounding difference).

How to verify your QuickBooks Desktop result
See troubleshooting steps for line 6.

Line 8 - Federal income tax withheld

QuickBooks Desktop behaviour
QuickBooks Desktop combines federal withholding taxes from employee paychecks with year-to-date (YTD) adjustments for the year.

How to verify your QuickBooks Desktop result
Run the Payroll Summary report for the year, and change the column to total only. The amount for Federal Withholding should match line 8.

Line 9 - Total taxes before adjustments

QuickBooks Desktop behaviour
QuickBooks Desktop calculates the amount by adding lines 3, 5, 7, and 8.

Line 10 - Current year's adjustment to taxes

QuickBooks Desktop behaviour
If the difference between your net taxes, line 9, and your liability for the year, line 11, is within $1.00, QuickBooks Desktop automatically places the adjustment in the adjustment to taxes field, line 10, to allow for fractions of a cent. If you need to adjust this amount for other reasons you may override this amount by right clicking, selecting override, and entering the desired number.

How to verify your QuickBooks Desktop result
If the amount of adjustment exceeds $1.00, it may be necessary to check lines 3, 5, 7, and 8, for the amount of taxes collected, or line 11. See verification for these lines for details.

Line 11 - Total taxes after adjustments

QuickBooks Desktop behaviour
QuickBooks Desktop calculates the amount by adding lines 9 and 10.

How to verify your QuickBooks Desktop result
If this amount is wrong, see the verification steps for lines 9 and 10.

Line 12 - Total deposits

QuickBooks Desktop behaviour
QuickBooks Desktop combines all liability checks and prior payments that have paid-through dates for the year, with federal withholding, Public Pension, and Medicare payroll tax items.

How to verify your QuickBooks Desktop result

  1. From the Reports menu, choose Employees & Payroll, and then Payroll Liability Balances.
  2. Click the Customise Report button.
  3. Click the Display tab and then select Last Calendar Year from the Dates drop-down list.
  4. In the Display columns by drop-down list, select Total only.
  5. Click the Filters tab.
  6. Click Payroll Item under Current Filter Choices. In the middle, click the drop-down next to Payroll Item, and select Multiple Payroll Items.
  7. Check off only Federal Withholding, Medicare Employee, Medicare Company, Medicare Employee Addl Tax, Social Security Employee, and Public Pension Company. Click OK.
  8. Click Transaction Type under Choose Filter on the left. In the middle, click the drop-down next to Transaction Type, and choose Payroll Liability Check. Click OK.
  9. The total balance should equal the amount of line 12. You can double-click this amount to see the transactions that contribute to the total. Double check that all deposits have been recorded.

If you know you've made a deposit but don't see it, expand your date range to see if the deposit appears. If it does, double-click that deposit and change the Paid Through date so that it falls within the year it's supposed to.

If the number on line 12 doesn't match the report, then a liability adjustment has been entered or a payment was entered incorrectly. To find a liability adjustment:

  1. Click Customise Report then Filters tab.
  2. Click Transaction Type under Current Filter Choices. In the middle, click the drop-down and select Multiple Transaction Types. From the list that pops up, click Liability Adjustment. This will show you any liability adjustments made within the year in addition to your payments. Double check that the liability adjustment is actually needed.

If you know you've recorded the deposit in QuickBooks Desktop, find the deposit and check that the type is specifically LIAB CH. and not just CH..

If it is CH., and it has been reconciled, a liability adjustment will need to be entered for the amount of the check that was entered. Then you will need to edit the amount of line 12.

Line 13a - Reserved

QuickBooks Desktop behaviour
QuickBooks Desktop leaves this line blank.

Line 13b - Reserved

QuickBooks Desktop behaviour
QuickBooks Desktop leaves this line blank.

Line 14 - Reserved

QuickBooks Desktop behaviour
QuickBooks Desktop leaves this line blank.

Line 15 - Balance due

QuickBooks Desktop behaviour
If line 11 is greater than line 12, QuickBooks Desktop reports the difference on line 15.

How to verify your QuickBooks Desktop result
See verification steps for lines 11 and 12.

Line 16 - Overpayment

QuickBooks Desktop behaviour
If line 12 is greater than line 11, QuickBooks Desktop reports the difference here.

How to verify your QuickBooks Desktop result
See the verification steps for lines 11 and 12.

Line 17 - Monthly summary of federal tax liability

QuickBooks Desktop behaviour
If you selected Yes in the Interview section under "Do you need a Form 943-A" and line 11 is less than $2,500, QuickBooks Desktop will not fill out line 17. If you selected No in the interview section under "Do you need a Form 943-A" and line 11 is greater than $2,500, QuickBooks Desktop will list your liabilities by month on line 17A 17L and total them on 17M.

How to verify your QuickBooks Desktop result

  1. From the Reports menu, choose Employees & Payroll, and then Payroll Summary.
  2. Click the Customise Report button.
  3. Click the Display tab and then set the date range of the year in question.
  4. In the Display columns by drop-down list, select Month, and clear the Hours and Rate checkboxes.
  5. Click the Filters tab.
  6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list.
  7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Public Pension Company, and Public Pension Employee. Clear any other selected items and then click OK.
  8. Click OK to return to the Payroll Summary report.
  9. Ignoring any negative signs, add up each column's amounts for Federal Withholding, Medicare Company, Medicare Employee, Public Pension Company, and Public Pension Employee taxes. The totals should correspond to the amounts in 15A 15L. Any of the numbers on the report can be double clicked to see what transactions contribute to their amounts.

Third-Party Designee

QuickBooks Desktop behaviour
QuickBooks Desktop does not supply this information.

Signature

QuickBooks Desktop behaviour
You can manually fill in the fields for Print Name, Date, Phone, and Title. QuickBooks Desktop may also prefill some of this information if it has been entered into the Company Information. You must sign the form after you print it.

How to verify your QuickBooks Desktop result
If the name or phone is incorrect, choose My Company from the Company menu. Make any necessary correction to the Payroll Tax Form Information section, and click OK.

Paid Preparer Use Only

QuickBooks Desktop behaviour
If the form is prepared by a third party, fill out the appropriate information in fields for Paid Preparer Name, Firm Name, Address, City, State, CEP, Date, Preparer PTIN, and Firm EIN. You can sign the form once you print it.

If you are using QuickBooks Desktop Premier Accountant Edition, this section can be automatically filled in using information located under the Company menu by clicking on My Company and clicking the Auto-fill Contact Info... button.