Hi, I have stepped in to carry forward bookkeeping and payroll. I have a question regarding a small amount showing due (Line 14) - $2.76 - (presumably rounding figures) for our 2Q2020 941 Return, which we are going to file. During the 2Q2020, I reviewed each pay period payroll summary (by pay date) for payroll taxes generated and it matches what was paid to EFTPS, so nowhere does it show anything is due when I review the customer liability reports. I checked the liability reports and also nothing lingering from the past. For the 2Q2020, everything was paid and matches withholdings, SS(employer and employee), and Med (employer and employee). I reviewed the previous 941 (1Q2020) return and it appears our bookkeeping had inputted an adjustment of (line 7) $2.75 to match Line 6 to Line 10. This was because the amount paid through EFTPS (Line 10) was greater than the amount of taxes before adjustments (Line 6). This “adjustment” equaled it out. I presume that while we may have “overpaid by $2.75” for the 1Q2020, possibly this should have been included as an overpayment in Line 15 that would be applied to the next return, i.e. 2Q2020. Given everything in QuickBooks is clear and reconciled, do I simply make a “negative adjustment” under Line 7 of the 2Q2020 941 to match the amount owed to the amount paid by $2.76? Looking forward to insight and thoughts. I am pretty smart with these kind of things so I want to make sure to consider anything that would carry through. Thank you.
