Drake Accounting - 941 Line 2 and Gross Wages Do Not Match
Article #: 16328
Last Updated: July 27, 2026
If Form 941, line 2 does not match gross wages from the Payroll Journal, review the following.
If you have selected Tax Deposits as the source:
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Verify that all tax deposits for the quarter have been entered and saved.
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The Tax Deposits screen choices Use Beginning Period Date, Use Ending Period Date, and Use Payment Date can also affect the information that is carried to the 941.
Date Range
Verify the date range used when running the Payroll Journal report is for the quarter only.
Setup
Review the deductions and benefits that are set up and assigned to employees. These are a common reason gross wages and taxable wages do not match.
The selections under Deduct After Tax determine whether a deduction or benefit reduces wages subject to a particular tax:
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When the applicable withholding box is selected, the deduction is applied after that tax is calculated. It does not reduce taxable wages for that tax.
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When the applicable withholding box is not selected, the deduction is applied before that tax is calculated and may reduce taxable wages for that tax.
For example, if the Federal withholding box is not selected, the deduction or benefit may reduce the wages reported on line 2 of Form 941 or line 1 of Form 944. It does not reduce the gross wages shown on the Payroll Journal report.
Note If you change the benefit or deduction setup, go to Employee Setup, select the applicable benefit or deduction, and press F3 to update the employee’s information. Changes do not affect previously created checks. If checks were created using an incorrect setup, delete and recreate those checks.