sales tax liability discrepancies

I'm here to help, @JaxHome.

The Gross Total column in the sales tax liability report displays the total amount from invoices and sales receipts that include any taxable items sold at the tax rate specified in the tax code. On the other hand, the Total Income section in the profit and loss report shows all sources of income, such as sales revenue, service revenue, interest income, and any other income earned by the business. To check for discrepancies, I recommend reviewing sales transactions by clicking on total income and gross total amounts.

With regard to your second question, QuickBooks Online does not automatically deduct subcontractor payments from the tax liability report, as it is designed to display the total sales amount subject to tax.

However, for billable expenses, they shouldn't be deducted twice from the sales tax. The agency will only collect sales tax on the sale. Make sure that they've turned on the Collect Sales Tax feature in the settings to track tax on billable expenses, which can then be passed on to the customers. If you notice any discrepancy between the figures on your report, you can review each transaction that contributes to these amounts.

Don't hesitate to refer to this article in case you need help exporting your data: Export reports, lists, and other data from QuickBooks Online.

Feel free to comment if you need further assistance; we'll respond to you as soon as possible. Take care!