What if the 941 Report does not match the Pay Code Transaction Report?
The employee contribution should match the employer contribution for Social Security and Medicare. If the employee contribution does not match the employer contribution, check to see if the employee was terminated. The 941 Report requires that the termination date is recorded as the last day the employee received a payroll check.
Example: If an employee was terminated on October 10th but the employee didn't receive their final payroll check until October 20th, the employee's termination date that is recorded in Payroll should be October 20th. It's important to use the final payroll check date as the termination date because the Pay Code Transaction Report uses the transactions that are tied to the employee's final payroll check while the 941 Report uses the employee's termination date to calculate amounts.
If the termination date occurs before the employee's last payroll check, the 941 Report will not include the employee's last payroll check and any other transactions that occurred after the termination date.
That's why the termination date needs to match the date on the employee's last payroll check.
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