 In this presentation, we're going to reconcile our year-end forms, our 941s, our 940, our W3s, and our W2s as well as our payroll register and our earnings records. We in essence want to be as secure as possible that all of these reports are filled out as well as possible and that'll save time because if they're not filled out well, most likely we'll be going back and digging in in them to fix problems in the future which can be very cumbersome task. It's much easier to get it right the first time when we fill this stuff out so it's worthwhile to kind of verify everything as best we can before checking to turn everything in and the easiest thing we can do or one of the best verifications is just to be able to reconcile what we have. We should be able to look at our numbers and say I see how these things relate. I see where these numbers are coming from and then if we find an error at least we know what we did. We know what's tying out and we can then have a better idea of how to fix it. So once again we're going to we have our payroll register we're going to scroll up top and make sure the panes are frozen because we will be looking at the totals at the bottom. We're going to put our cursor on A4 then go to the view tab the windows group and freeze the panes and we are really going to be working down at the bottom here to our reconciling screen and looking at this information for the earnings records the payroll register and the earnings records. So then we're going to go back to our forms here. So the forms that we have are going to be the 940 and the 941s. Now first we can look at this item here and say okay here's the the 241 201 which is total earnings and we might think that that should match out to the 941s but that's not necessarily the case. Let's go back to the 941s and see if we can reconcile those items. So if we go to the 941s we've got the wages and tips and other compensation this is for the third quarter. We're going to add up the four quarters of that number and see what it comes out to and see how we can reconcile that possibly to the year end 940. So if we have the calculator here we're going to say that the 941s add up to 91424.1 plus and then that's we're going to go to the fourth quarter. So here's the fourth quarter 940 and we only have two quarters because that's when we started operations and we're going to pick up the 135909.9 and that gives us the 227334. Now if we go back to the 941 or the 940 you can see it doesn't match. We've got the 241206 versus the 227334. So we would say well where does this number come from? Why don't these two match up and where does this number come from? This is the 941 number. This is the 940 number. This is what you would think would be the wages for the year. This is going to be the wages for the year for the 940. So if we if we go back to our data we're basically saying that the the 940 data is going to be the total earnings. So 941206 so the 940 looks right. Remember the 941 though is really the FIT earnings which means it's really the total earnings minus in our case just the retirement plan. If there was a qualified cafeteria plan it would be minus the health insurance plan as well. So really for Q3 this is how it's calculated. So it's the total earnings minus the 401k same for 24. So 227335 is what's on adding up the 940s. The difference then between what's on the 940 and the 941 is going to be what's in the 401k plan the 13871. So if we go back to the 940 and we say okay I can reconcile this to the 941s the difference should be the 401k plan that could give us you know some peace of mind we know exactly what the difference is there. The next things we can do is go to our 941s and we can reconcile the amounts well from our federal income tax we can add them up and make sure that they reconcile to our worksheet. So our federal income tax withholdings are going to be this 17003.26 for our 941 this is quarter three 941 and if we go to the 941 for quarter four 941 we have the withholdings line three plus 25212.4 42215.66 that should match what is on our form here for FIT 42215.66 looks good it should also be reported on the W3 for FIT. So if we go to the W3 for FIT then we should also find the 42215.66 for the W3. So then if we go back to the 941s I note that the 941s are really reporting FIT Social Security Medicare and that's also reported on the W3 so we can go back and forth and check those off. The 940 only is reporting FUTA attacks so then if we go to Social Security wages again for the two time periods we're going to say that this is the 941 for the third quarter we're going to add up the FUTA wages so that's going to be this 96973.5 plus and then we'll go to the fourth quarter so this is the fourth quarter 941 and we'll add up the plus 97632.5 gives us the 194.606. Okay so that's what should be on our report for the year on our register I'm going back to our register for OASDI wages it's 194.606 and it should also be on the W2 if we go back to the W2 190 or W3 summing up all W2s 194.606. Let's go back to the register and we'll now we'll verify the Social Security amount that was paid. This one could be a little tricky so we're back on 941 third quarter and we're picking up the amount of payment so that's going to be Social Security paid 12024.71 plus the fourth quarter if we go to the fourth quarter so this is the fourth quarter 941 oh I deleted it let's add this up 12106.43 for the fourth quarter plus and then we'll go back to the third quarter which is 12024.71 2413114 Social Security that was withheld if we go back to our worksheet we're going to say that we have Social Security and we say hmm I don't see that number here I don't see it here and the reason is this is twice that number so if we want to find either half of it which is what we'll see on the W2 and the W3 we're going to take that and divide it by 2 and there's our 1265.57 and if we go back to our worksheet for our W3 there's our 1265.657 so remember you got to divide it out because the 941 reports both employer and employee portion so then we'll go to the Medicare if we go to the 941s again 941 third quarter we're looking at the Medicare here so if we go to the Medicare for the third quarter wages Medicare wages 96973.5 plus and then we're going to go to the fourth quarter here so this is the Medicare wages so we're saying 144232.5 241 206 if we go back to our worksheet we're going to say the Medicare is the total wages that we had so I'm going to go to the right just a little bit so there's the 241 206 and then if we go to our W3 that should match out here 241 206 now we'll go to the amount withheld Medicare tax withheld so if we scroll back over here for the fourth quarter so I'm in third quarter again 941 Medicare tax withheld is going to be 2812.23 plus and then go to the fourth quarter so we're picking up the fourth quarter of 4182.74 699467 back to our worksheet so the Medicare again we might say hmm I don't see that for the Medicare we only see the 3497 that's because this is both employer and employee portion if we divide it then by two there's the 349749 about if we go to the W3 we see there's the 349749 so there's there's how we can basically tie out the W3s the 940 as best we can and the 941 of course the same information down here on the payroll register should be the accumulation of the data on the earnings records as well and we verified that with these grain zeros so those two tie out if we add up the earnings records the same totals should add up for total earnings the net pay and the withholdings as with the payroll register and of course we use these earnings registers to make the W2s and W3s or W3 1 W3 and the W2s and the W3