If you’re enrolled in Wave Payroll's automated tax payment and filing service, you should take the steps outlined in this guide before June 30, to ensure the Quarter 2 filings that Wave produces are accurate.
Payroll customers based in self-service tax states, or who have chosen to pay and file on their own, may find many of these steps helpful though not all will apply.
Checklist at a Glance:
Make sure the correct address is used on your tax forms
The IRS will update your address to match what is listed on Form 941. The address Wave generates on Form 941 is the "work address", not the "mailing address" you entered in Wave. If you’ve moved your business, an easy way to update your address on file with the IRS, is to file your Form 941 with the new address.
To review and manage your business address in Wave:
- Go to Settings
- Under the Payroll subheading, select Business Profile
- Enter the address you want to appear on federal forms, in the Work Address field.
The correct Work Address should be entered in Wave no later than June 30. Please note the "Mailing Address" listed in Wave will not appear on your IRS forms.
Advise Wave if your business closed, or you stopped paying wages this quarter
If your business has closed or if you have stopped paying wages during the quarter and you require "Box 17: business closed or stopped paying wages" marked on Form 941, please contact Wave Support by clicking on the help icon in your Wave account no later than June 30.
Review new employees’ personal information
Have you paid one or more employees for the first time? Double check the following employee information in Wave to prevent common filing errors:
- Social Security Numbers (SSN)
- Current Address
- Full legal name (this should be exactly as they appear on SSN cards)
You should already use this information when you run payroll but if you find any mistakes, you should correct it immediately.
To review and manage employee information in Wave, click Payroll and choose Employees. Select your employee's name and click Personal Information. More detailed steps are available in: "How to edit employee details."
Verify employees' wages, benefits and deductions
Review your year-to-date entries to ensure everything is correct so far this year. A few things to consider:
- Are all employees paid within Q2, 2020 entered into Wave (even if they were paid outside Wave)?
- Are all wages reported accurately?
June 30 is the last day for Wave Payroll customers enrolled in payroll tax payments and filings to request adjustments to their Quarter 2 Form 941. Wave will accommodate adjustments requested after this date with Form 941 X.
Consider any business structure change during the quarter
If you have made any changes to your business structure between April and June this year that resulted in a new Employer Identification Number (EIN), such as incorporating from a sole-proprietorship, you will need two sets of quarter-end forms. One set with your old EIN from before the business structure change and another set with the new EIN and wages paid after the change. This will also be true of the year end forms, which you file in January.
Check your tax rates
Check if your state updates tax rates more than once a year. If this applies to you, and your state unemployment tax rate is changing for Q3, enter the new rate and the date it becomes effective in your tax profile.
To review and manage your business' tax details, go to Settings and select Tax Profile.
Let Wave know if you have claimed advances on Form 7200
Form 7200 was introduced in the midst of the many programs introduced to help businesses during COVID-19. It is used to request an advance payment of the tax credits for qualified sick and family leave wages, and the employee retention credit.
If you have set up Payroll Tax Payments and Filings with Wave, please reach out to our Support Team by clicking on the help icon in your Wave account to let us know if you submitted one or more Form 7200 in order to ensure your form 941 is accurate.
Make sure you provide the following:
- Your business name
- Applicable calendar quarter
- Date(s) filed
- Amount(s) entered in Section 2: Line 8
Please provide this information per form 7200 filed.
Please note that if we are nearing the end to a quarter, any unclaimed amount that is sitting in your account will be reconciled on your form 941. If you are unsure if you should still file a form 7200, please reach out prior to filing to avoid a double claim.