Diagnostic 941: Line 12 does not equal Line D of Schedule B

Alerts and notices

During processing payroll 941 tax forms, you may receive a critical message that reads, "Line 12 does not equal Line D of Schedule B".  This message will appear when the 941 tax deposit was underpaid.  This message will continue to appear even after performing Process Adjustments and printing the created adjustment liability check.

The Process Liability Adjustments function is not designed to update the Schedule B. Its sole purpose is to make all liabilities equal to the tax due (or overpayment) plus previous payments on the form for forms that have a line for previous payments. If the form does not have a line for previous payments, it will make all liabilities in the period equal to the tax due (or overpayment).  

To clear this diagnostic, The Schedule B will need to be overwritten unless the original checks are deleted and re-entered with the correct taxability settings.

Note: In some instances there may be overrides on Schedule B from prior quarters. Overrides made to payroll tax forms remain as they are until cleared manually. Overrides may affect calculations on other forms or other lines on the same form. Use the following steps to remove any override edits that were made to the 941 in prior periods that may affect the current period 941 calculations.

  1. Choose Actions > Edit Payroll Tax Forms.
  2. If not already selected, choose the appropriate client from the client drop-down list at the top right.
  3. Select Reconciliation from the Form type: field; mark the Quarterly checkbox; and then choose the quarter and year you are processing.
  4. Click Refresh.
  5. Select Federal Jurisdiction.
  6. Go to the 941-Sch B TAB.
  7. Choose Edit > Clear Form Overrides. This will remove any amounts that were manually input (these amounts appear in red text).
  8. Verify the amounts on the 941 and continue processing as usual.

See also: What to do when data in Form 941, Line 12 does not match data in Line 16 or Schedule B

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