Ho should I record RCT deduction from subcontratcor?

Hi there, julia.distaff@gm. 

I'd be glad to show you how to record RCT deductions from a subcontractor in QuickBooks Online.

You'll need to set up your sales tax rate and settings in QuickBooks Online, 

Here's how:

1. Go to Taxes, then select Sales tax.
2. Under the Related Tasks list on the right, select Add/edit tax rates and agencies.
3. Select New and choose either a single or a combined tax rate.
4. Enter a name for the tax, the agency you pay, and the percentage for the rate. Use a single rate if you pay just one rate to a single agency.
5. Select Save.

Then, record paying a subcontractor by creating the bill. Here's how: 

1. Go to the + New button to create a bill.
2. Select your subcontractor.
3. Enter the full (gross) amounts for each item. 
4. Click on Save and close once done. 

To learn more about sales taxes, the most commonly-used GST/VAT rates, and how you can add the additional tax rates, please check out these articles:

• Set up and use sales tax in QuickBooks Online
• How do I set up sales GST/VAT rates and use them on forms? (International QBO)

You're always welcome to post here if you have any additional questions. Take care!