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Employee’s annual wage and tax statement; it reports the gross wages earned and taxes withheld during the calendar year. The employee uses the report as a function of their Form 1040.

Bookkeeping – Payroll Cycles (Lesson 32)


Similar to the bookkeeping cycle, the payroll cycle has many frequent activities, fewer incremental requirements and one important end of the year report.   This lesson explains these respective cycles and how they tie together for the final year [...]

Time for Those W-2’s


For us accountants January brings the greatest payroll function of the year; printing the year end payroll reports.  These include the W-2’s, W-3 and Form 940.  They all must tie to the combined total of the quarterly 941 reports and the [...]

Form 941 – The Basics


Form 941 is the employer’s quarterly federal tax return.  It reports how much federal income taxes were withheld; Social Security taxes and Medicare taxes that are due and how much was paid in deposits to the Internal Revenue Service.  The [...]

Year-End Preparation


I dread January of every year. I have to spend so much time preparing the year-end payroll reports prior to the January 31 deadline. Not only must your quarterly’s and monthly’s tie together, but it has to match the general ledger at year-end. [...]