Deceased final paycheck in QB - correct payroll item

[Gretel]

I am stunned. There are clear instruction on the Intuit website that final wages to be paid to the estate in year of death are subject to employment taxes but not withholding taxes and NOT to be reported in box 1 of the W-2.

However, I cannot find any payroll item that will do the correct reporting on forms 941, 940 and W-2. Has anyone done this using QB? I cannot believe that I will need to manually change these employment forms.

[kathyc2]

There may be other ways to do it, but this will work:

Create a payroll item, tax tracking type other. Click on the medicare and SS lines but leave federal unchecked.
Create paycheck, leave info in earning box blank. In other payroll items box use the new item you created. It will calculate payroll tax but not FIT and should report correctly on payroll tax forms.

[Gretel]

There may be other ways to do it, but this will work:

Create a payroll item, tax tracking type other. Click on the medicare and SS lines but leave federal unchecked.
Create paycheck, leave info in earning box blank. In other payroll items box use the new item you created. It will calculate payroll tax but not FIT and should report correctly on payroll tax forms.

Thanks, Kathy. Unfortunately, QB is going weird with payroll expenses and reporting. Here is what happens:

1. W-2 is OK other then entry in box 14
2. 941 is OK
3. Neither Fed nor State UE is withheld even though these items are checked on the list and then the reports are not correct either.

This is still better than having to change everything. I still can't believe this. I mean, people die left and right who get their paychecks through QB. I honestly tend to just ignore the correct reporting - it's $200 gross and wife is the estate.