Then click into the “Sales Tax Name” field and enter the name for the sales tax.
In the “New Item” window, select “Sales Tax Item” from the “Type” drop-down at the top of the window that is displayed immediately upon opening the window. To create a “Sales Tax Item” within the Item list, click the “Item” button in the lower-left corner of the “Item List” window and then select the “New” command from the pop-up menu that appears to open the “New Item” window. This is because in states that collect both a state and county sales tax, some states want you to report state sales tax and county sales tax as separate items, while other states want you report them as one item. Within the “Item List” window, you must create a separate “Sales Tax Item” for each sales tax that you must report, not necessarily for each sales tax you collect. You can open the Item list by selecting “Lists| Item List” from the Menu Bar. Once you have created vendor records for all of the agencies to whom you must submit sales taxes, you can then continue to create the actual “Sales Tax Items” needed by your company file as items within the Items list.Īfter creating the vendor records to indicate the agencies for whom you are collecting sales taxes, you can then create the actual sales tax rates within the QuickBooks Item list. You must create the vendor records before creating the sales taxes, because when you later create the individual “Sales Tax Items,” you must specify the vendor for whom you are collecting the sales tax. If you would like to review the process of adding a new vendor record to the Vendors list, please review lesson “3.5- The Vendors List.” This will allow you to remit checks for the sales taxes that you have collected to the selected vendors when the time comes for you to pay your sales tax within QuickBooks. The first thing to do when setting up QuickBooks to collect sales tax is to create the agencies for whom you collect sales taxes, and to whom you pay the sales taxes collected, as vendors within the Vendors List. We will examine each part of this process in detail, to assist you in setting up your company to track and pay sales tax. However, in order to use QuickBooks to track and pay sales tax, you must perform the following steps listed in the table below. From this information, QuickBooks later can create the check or checks for the appropriate tax agency or agencies when the sales taxes collected are due. It also keeps track of how much sales tax is collected and for which taxing agencies the sales tax is collected. In QuickBooks, you can apply sales tax on selected items for taxable customers during the sales process. Many companies have a mix of taxable and non-taxable products and services to sell, and many also have some customers that are taxable while other customers are not. For example, a company may have to collect and pay more than one sales tax.
Quickbooks pay sales tax online how to#
How to Run a Sales Tax Report in QuickBooks See QuickBooks: Tips and Tricks for similar articles.