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s1b
January 30, 2024
Question

The Sales Tax Liability report doesn't match California Sales Tax Form remittance. I tried multiple reports and spreadsheets & can't get totals to match the line items.

  • January 30, 2024
  • 2 replies
  • 0 views
Is there a different report I should run?  I've tried multiple reports and spreadsheets and I can't seem to get the calculations to match.

    2 replies

    J
    JanbonN
    January 30, 2024

    Hello there, @s1b. I'm here to share some details to ensure your sales tax liability report matches your California sales tax form remittance in QuickBooks Online (QBO).

     

    The Sales Tax Liability report will suffice to match your state's sales tax remittance.

     

    There are a few things you need to check.

    • Your sales tax setup should be correct.
    • The date range should be the same.
    • The accounting method should be similar (Cash or Accrual)

     

    Moreover, you can click the amounts on the report to see if all of the invoices with sales tax are showing.

     

    Additionally, you can refer to this article to know how QBO computes your sales tax: Learn how QuickBooks Online calculates sales tax.

     

    You can return here for further clarification and information regarding your sales tax concerns. I'd be here to assist you always. Have a great day ahead.

    S
    s1bAuthor
    January 30, 2024

    Hi,

     

    I have done all that you mentioned.   I've been processing Sales Tax for over 25 years.   This is my first time using QuickBooks Online with Sales Tax Automated.

    I cannot figure out how to get the Sales Tax Liability report to match the other reports in QB - WITH ALL THE SAME SETTINGS/DATES, etc.

     

    For example:

    The Sales Tax Liability report

    = $99,616 in Non Tax Sales.

    = $43,381 in Taxable.

    this should = $142,997.

     

    But when I run P&L and Customer Sales for the same period, all are cash settings, the total is $127,574.

    I confirmed that $127,574 is the correct sales amount - and it matches deposits for the same period.

     

    $99,616 also does not match the report I run for Transaction List by Customer with sales tax = 0.  That report shows $84,203.

     

    The second issue and MOST CRITICAL is the Liability Report shows each tax rate separately.   So I grouped the tax areas and deducted the city sales totals from the district total and I can't get the Sales total to match.

    Example on the report it shows GROSS TOTALS:

    California, Los Angeles County District3,933.40 
    California, Glendale City District720.00 
    California, Covina City District336.00 
    California, Culver City City District196.80 

     

    The $3,933.40 amount includes the City amounts.  

    I export to spreadsheet and reduced all of the top level Gross numbers by the City amounts.  The Gross Sales still does not match $127,574

      MariaSoledadG
      MariaSoledadG
      January 30, 2024

      I understand how important it is to keep your books accurate. And I know that things may seem quite complicated, especially if you're new to this program, S1b.

       

      Technically, if you've already correctly set up sales tax, and selected the correct accounting method and the correct date as well when running reports, your Sales Tax LIability report should match the Californian Sales Tax Form Remittance. With this, I recommend reaching out to our payroll support team so they can take a look at your account and double-check what is happening. They have the tools to pull up your account in a secure environment. This way, they'll be able to investigate this further. To do so, follow the steps provided below:

       

      1. Sign in to your QuickBooks Online company.
      2. Go to Help (?).
      3. Select Contact Us.
      4. Enter your concern, then select Let's talk.
      5. Choose a way to connect with us:
        • Start a chat with a support expert.
        • Get a callback from the next available expert.

       

      Furthermore, learn how you can customize your reports to ensure you'll get the right data you need most. Please check out this article for your reference:  Customize Reports In QuickBooks Online.

       

      Don't hesitate to post again if you have other concerns or if you need more help with the sales tax liability report. I'm always around to provide the information that you need. Have a nice day!

      S
      shannon411
      May 22, 2025

      I am having the same issues.  It's completely ridiculous.  Also, why doesn't the sales tax liability report total the columns?  How do users in Washington State get the correct information to file B & O Taxes?

      C
      ClaireSamanthaS
      May 22, 2025

      I know how frustrating it is when reports do not match our expectations, especially for tax compliance, Shannon. Here is a simpler explanation to help you get the correct information for your tax filings.

       

      The Sales Tax Liability report will effectively align with your California Sales Tax Form remittance if you:

       

      • Ensure your sales tax setup is correct.
      • Confirm that the date range matches your remittance period.
      • Check that your accounting method is the same (either Cash or Accrual).

       

      The total that QuickBooks provides is just the total tax amount in that column since the tax amounts are the same for each state and county. They only differ in tax rates, which are combined into the total taxes collected by the sales tax agency.

       

      When you create an invoice or sales receipt, the total sales tax is displayed above the invoice or estimate total. To see a detailed breakdown, click on See the math. If the sales tax shown isn't correct, ensure that the customer's address is accurate and their items are categorized correctly.

       

      You can refer to this article to learn more about how QuickBooks computes your sales tax: How QuickBooks Online calculates sales tax.

       

      QuickBooks can automatically calculate sales tax on your invoices and receipts, ensuring accurate and easy filing. For more information, please refer to this article: Set up and use automated sales tax in QuickBooks Online.

       

      If you have any additional concerns or inquiries about your sales tax liability report, you can save this thread or create a post, and we will gladly offer a helping hand.

      S
      shannon411
      May 28, 2025

      We are in Washington State, not California, but have the same problem of the report not matching actual sales.  The automatic sales tax is a nightmare and results in duplicate reporting for same category.  Is there a way to turn automatic sales tax off?  If someone doesnt remember to change it to the correct tax when creating an invoice, it makes our tax reports off.  We previously had enterprise and sales tax was always correct,and  always aligned with deposits of payments. 

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