Filing Annual Returns and Wage Statements in QuickBooks 2016
QuickBooks is a handy tool for your annual tax needs. At the end of the year, you need to file some annual returns — such as the 940 Federal Unemployment (FUTA) Tax Return — and the W-2 and W-3 wages statements.
You need to prepare any state unemployment annual summary before you prepare the 940 because the 940 requires information from the state returns.
How you deal with the annual payroll tax returns, including 940, W-2 and W-3 forms, mirrors how you deal with the quarterly 941 payroll tax returns.
If you’re using the Basic Payroll service: Remember to have your accountant prepare these forms.
If you’re using the Enhanced Payroll service (as is the case with the quarterly 941 forms): You need to fill out and send the 940, W-2 and W-3 forms in-house, but you get lots of help from QuickBooks.
If you’re using a full-meal-deal payroll service: The service automatically fills out and sends these forms for you.
QuickBooks creates and prints the 940 and W-2s/W-3s for you. All you have to do is choose Employees → Payroll Tax Forms and W-2s → Process Payroll Forms. QuickBooks asks you for a little information, and then it calculates for you. Just check the QuickBooks records against your own, and if everything matches, print that puppy. To look over the QuickBooks data included in the form and verify its integrity, it helps to print an Employee Earnings Summary report.
If you have a little trouble, call the IRS. If you have a great deal of trouble, splurge and have someone else fill out the forms for you. Filling out these forms doesn’t take a rocket scientist, by the way. Any experienced bookkeeper can do it for you.