Review Tax Liability vs. Payments
Wage & Tax Summary
The Wage & Tax Summary provides a break down of paid wages, taxable wages for each tax and the employee and employer portions. This report will include the 940 Credit Reduction if you have the Accrue Credit Reduction setting enabled.
Tax Liability Report
The Tax Liability Report provides detailed information on your Federal and State payroll tax liabilities. This is needed because the IRS, and most states, require that you make periodic deposits of payroll taxes when the amounts reach a certain limit.
Note The Tax Liability Report does not include the 940 Credit Reduction, as the liability for this tax does not get calculated until the end of the year.
Makes Payments as Needed
Use the EFTPS and your state’s payment website to make any additional payments needed to balance to your liability. Check the current years payment and filing due dates for the 940 Credit Reduction.