Skip to main content
H
heatherk3
February 7, 2023
Question

payroll taxes

  • February 7, 2023
  • 1 reply
  • 0 views

Our CPA has just advised us that we are able to deduct the payroll and taxes of our truck drivers as COGS and therefore separating them from office staff payroll and taxes which are a regular business expense.  I went in to try to create additional social security-company and medicare-company payroll tax expenses for the COGS payrolls but quickbooks wouldn't allow me to set up additional tax accounts for this separation.  Is there a way to set this up in Quickbooks at this time or do I have to manually AJE this amount every payroll?

1 reply

BigRedConsulting
BigRedConsulting
February 9, 2023

No, there's no way to set that up.

 

I don't see the point, really, as you can deduct the taxes either way. If you must have the expense in a COGS account instead of the standard expense account, you can create a Journal Entry periodically to move the correct amount of money to the COGS account.

H
heatherk3Author
February 9, 2023

The reason I was hoping for this is because Oregon has yet another new tax a few years (2020) ago that we are now subject to.  The Corporate Activity Tax (CAT tax) is basically calculated by taking gross income less 35% of either COGS or Labor attributable to the gross income.  We are a trucking for hire company (dump trucking) and our CPA wanted me to separate the driver's payroll/payroll taxes/workmans comp from office/officer payroll/payroll taxes etc.  I will just do an AJE each payroll to separate these taxes.

Terms & ConditionsAccessibility statement