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krisknightmail
August 5, 2021
Question

Assign Sales Tax Liability Accounts

  • August 5, 2021
  • 1 reply
  • 0 views

We sell in various States using Shopify POS set to the location of the sale.  Shopify calculates the sales taxes based on the POS location.    We use the app, "QuickBooks Online by OneSaas" to push Shopify data to QBO.  QBO Automatic Sales Tax is on in QBO, each state is entered in sales tax settings and has a corresponding Sales Tax Payable Liability account yet QBO does not apply the taxes to the correct accounts.  The easy solution is to disable Automatic Sales Taxes so we could map the tax settings in the app but QBO will NOT allow it to be disabled (which is SO WRONG because it doesn't work correctly!)

 

So, being STUCK with QBO automatic sales tax, I need a QBO solution.  The goal simply is for taxes collected for each various state to be applied to the corresponding QBO account for each various state.  Surely there's a way, we can't possibly be the only business that collects sales tax by POS location vs Customer address!! 

    1 reply

    Rustler
    Rustler
    August 5, 2021

    QB works on names, that is true for dam* near everything

     

    So the Sales tax payable account is really a parent account, and the names of the tax authorities is a sub account.  So all sales taxes seemingly post to the one sales tax payable account but in reality they are segregated by name.  Easiest solution is to just push all the different states to the sales tax payable account with the name of the tax authority associated.  Then pay sales tax will list the tax due by tax authority

    K
    krisknightmailAuthor
    August 5, 2021

    Automatic Sales Tax creates the individual sales tax payable accounts!  Tennessee Department of Revenue-Payable, Florida Department of Revenue-Payable and so forth for each State tax authority.   The problem is that when FL tax is collected QB might "choose" to send it to the TN account or to some other random tax payable accounts!     

     

    MJoy_D
    MJoy_D
    August 5, 2021

    I can share some information with recording sales tax payments, @krisknightmail.


    Using the automated sales tax, QuickBooks automatically calculates the total tax rate for each sale based on where you sell and where you ship. Then, it will keep track of your state's tax laws to accurately calculate sales tax and returns. 

     

    When you create an invoice or receipt for your customers, it’ll automatically track sales tax.

     

    After making sure that everything is accurate, you can e-file your return on your tax agency’s website or by mail.

     

    Once you're done filing, you can manually record your tax payment to zero out your sales tax from the Taxes menu. That’ll be posted to the correct Sales Tax Payable account.

     

    You can always run a sales tax liability report to see each tax agency, the taxable amount of sales, and the tax owed. Refer to this article for more information: Manage sales tax payments in QuickBooks Online.

     

    See the following article for detailed guidance in filing your sales tax return and recording your tax payments: File your sales tax return and record tax payment in QuickBooks Online.

     

    I've also added some articles about handling tax rates and other relevant topics:

     

    Let me know if you need more help in recording your tax payments by leaving a reply below. Keep safe and have a wonderful day!

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