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Community > Payroll Feature Requests >

US Payroll - 941 Form

Started by Nicole Silvernail in Payroll Feature Requests | Idea

There is a bug with the current Xero 941 form and Xero Support suggested I submit as a feature request here. My client runs payroll once per month. Employees are paid on mm/15 for all hours from mm-1/09 to mm/08. For the purposes of this example, 17 employees were paid on June 15 for hours worked from May 9 to June 8.

The 941 form generated by Xero includes all payments made to employees in May, June and July - correctly.

The form lists the number of employees as '0', as no one was paid on June 12. Xero pointed to IRS instructions for the 941: https://www.irs.gov/instructions/i941#d0e696. However, they missed the intent of the instructions.

I spoke to IRS representative #1001780529 on July 5. The form will be considered incorrect by the IRS if wages are >$0 and the number of employees=0.

Since there is no way for me to update the 941 form (other Accounting softwares allow you to override values), I must recreate and submit the form outside of Xero.

In my mind, this is a bug in the Xero software.
Thanks for also reaching out to the team at Support on this, Nicole. There is no way to adjust this within Xero, so thanks for adding in the request. We have many requests in Community for different features in Xero, so please do come back here and add your vote. This helps us to keep an eye on the demand - we'll let you know here, if this is something that's in the plans.

Lauren C (Community Manager)

As long as the built-in tax forms are editable, you could fix the issues with the very tax form editing (and filling) software you have, like this one: https://fillable-form-w2.pdffiller.com/ It's paid and can not work as supposed to in some cases, but I tested it with W-2's directly and it worked

Paul Humphrey