Wages Paid Two Quarters

by Rick
(Palm Desert, Ca)

A reader asks for clarification on wages paid in two quarters but appearing on a single check in QuickBooks.

Hello Jennifer,

If I pay an employee bi-weekly and the pay check covers wages in 2 quarters (e.g. paid on April 7 so half check is for March and half is for April), how do I show this on quarterly reports like the 941? Should the wages be manually calculated and the report adjusted?

Jennifer replies:

Hi Rick,

No, payroll is on a cash basis. This means that the wages belong on the 941 in the quarter in which the wages were paid, not in the quarter in which they were earned.

If payroll was on an accrual basis, then the answer to your question would be Yes. But thankfully payroll is on cash basis for reporting purposes.

I hope this answers your question. If this was helpful or not, please let me know by posting a comment below. Take care and thanks for writing.

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