Playlist:    • 1100 – Payroll and Current Liabilities  
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Class code: 527wmle
https://accountinginstruction.info/
Payroll Accounting
Reconciling the year end payroll tax forms will take a look at the payroll forms we put together including the quarterly payroll tax forms 941, the yearly payroll tax form 940, the yearly payroll tax form W2, and the yearly payroll tax forms W3.
It is very common for problems to become apparent at the end of the year with relation to payroll because this is when we can reconcile the payroll tax forms. Finding problems in the payroll tax forms before finalizing them can save a lot of time because the IRS is very unforgiving with payroll. As accountants the reconciling process is nice and give us a scene of security that the number are correct in a similar way as the double entry accounting system helping to reduce errors in bookkeeping.
The reconciling of the payroll tax forms is not as easy as it would seem. For example. the wages reported on W2 and W3 can be confusing to tie out to the wages reported on forms 941. The form W3 will include three boxes that could have different wage numbers. Form W3 can be difficult to match up with the forms 941s with regard to social security and medicare taxes because the form W3 shows only the employee portion while the form 941s show both employee and employer portions.
For more accounting information see website.
http://accountinginstruction.info/cou...