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kris2k
February 12, 2022
Question

QBO Custom Tax Agency for tracking Insurance Premiums Taxes

  • February 12, 2022
  • 1 reply
  • 0 views

I'm entering an expense for an Insurance Premium in QBO, to which I'd like to make sure to track the 9% tax rate on insurance premiums, so I can remit them at EOY.

 

This is pretty-similar to the Sales Tax agency workflow, so I decided to create a custom Tax Agency for annual remittance to which I have configured a 9% tax-code on purchases.

 

When I finish processing my bill, and assign the Insurance-Premium tax-code for the premium amount, I can't seem to find the amount recorded anywhere for any date on the Taxes/Sales Tax/Custom Agency I just created.

 

Is this a bug or a feature? 

1 reply

H
Henock K
February 14, 2022

Hi kris2k,

 


Welcome to the Community. It's important to track your Insurance Premiums Taxes in order to keep your books up to date. QuickBooks Online is a great program that gives you the ability to track your taxes to ensure that the right amount is reported to the CRA. I'd be glad to point you in the right direction to find the amount recorded on the custom tax agency.
 

The sales tax reporting method can influence how the amount appears under the agency. The cash method shows the tax amount only when cash is received or paid and the accrual method shows the amount when the transaction ( invoice or bill) is created. I'd encourage to review the reporting method chosen when setting up the agency.

 

  1. Click on Taxes on the left navigation menu.
  2. Select Sales tax.
  3. Click on Manage Sales tax.
  4. Select Edit Agency Settings.
  5. Choose the correct Reporting method.
  6. Click on Save and then Done.

 

If you're unsure about which reporting method to use, I recommend that you consult an accountant as they have the knowledge to point you in the right direction on which reporting method to use for your books. If you don't have an accountant, you can find one near you by clicking on My Accountant on the left navigation menu> and then Find a pro to help.

 

 

Also, when you set up the custom tax agency and select the tab I pay this on purchases, you'd need to select Tax on purchases reclaimable in order to track it on pruchases. If this option is not selected, the tax won't be tracked under the agency chosen. I'd encourage you to recreate the custom tax agency to track your Insurance Premiums Taxes. You can refer to the following steps to set up the new agency.

 

  1. Click on Taxes on the left navigation menu.
  2. Select Sales tax.
  3. Click on Manage Sales tax and then Add tax.
  4. Choose Add a custom tax and agency and then click on Add.
  5. Enter your information, Select I pay this on purchases.
  6. Enter the percentage and select Tax on purchases reclaimable.
  7. Click on Add and then Done.

 

This will allow the agency to track the tax on purchases.

Let me know if you have any questions, I'll be happy to help. 


 

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