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bsean
January 8, 2025
Question

Sales Tax Liability Report

  • January 8, 2025
  • 1 reply
  • 0 views

Having an issue with the Sales Tax Liability report.  I live in Pennsylvania, and I do business in different counties.  One county has a 1% sales tax, and the state has a 6% sales tax.

 

My Sales Tax Liability report appears to be calculating my state-level taxable amount based on a 6.3395% tax rate, which isn't correct. $4300 * 6% should be $258.

 

The county with the 1% sales tax is being calculated correctly in the report.

 

Can someone please explain how this is happening, and how I can fix it?

    1 reply

    FishingForAnswers
    FishingForAnswers
    January 8, 2025

    @bsean  Despite how janky QBO is, you should still be able to double-click on any of the given amounts in the 6% line and get a report of the invoices QBO is sourcing to get to its totals.

     

    The first thing I'd check there is whether one of the invoices has an amount similar to $243.33; this is the taxable amount necessary to create the $14.60 difference in calculated sales tax versus their sales tax total.

     

    Second thing I'd check is if something's being sourced that ought not to be.

     

    I think there's also some function in QBO that'll show you how they are arriving at their numbers.

     

    In any case, until someone else comes along, that's all I have; in my experience, QBO's reports tend to be pretty terrible about accuracy and usability.

     

    Maybe the support staff here can give you a good answer, but you're more likely going to be stuck until another QB user that does use QBO happens to stop by here.

      J
      JanbonN
      January 8, 2025

      Hello there, bsean. I'm here to clarify your concern about sales tax liability and provide a resolution.

       

      One possible reason for the report discrepancies is the incorrect tax rate being applied to your sales forms. When you set up a tax rate, QuickBooks automatically uses the rate associated with the specified address. Did you create a custom rate of 6% for your state taxes? If so, this may explain the discrepancy.

       

      To check the tax rate used for your sales forms, you can run the Sales Tax Liability report. Here’s how:

       

      1. Go to Reports and select Standard.
      2. Search and click the Sales Tax Liability Report in the field.
      3. Filter the report and click the Run report button.
      4. Click on your state's name on the report to open the list of transactions.
      5. Check the TAX RATE column to see which rate is being used.
      6. If you notice any discrepancies, open the relevant sales form by clicking on the dates and update it to the correct rate.

       

      Additionally, you can refer to this article for instructions on emailing, exporting, and printing your reports: Run a report in QuickBooks Online.

       

      Also, if you need help with managing your reports, I encourage you to visit our QuickBooks Live Expert Assistance website. Our knowledgeable experts are available to guide you through the process, ensuring your financial records are accurate and up-to-date.

       

      If you have any further questions regarding your sales tax in QBO, please feel free to return to this thread, bsean. We're here to assist you in any way we can

        B
        bseanAuthor
        January 8, 2025

        Hi @JanbonN .

        Thanks for the info.

        I believe I'm using the automatic sales tax feature. I don't recall ever defining the 6% rate for PA.

         

        I ran the report as you suggested, then clicked on Pennsylvania, and confirmed that all of my transactions for that quarter have 6% listed as the tax rate.

         

        I also ran the main Sales Tax Liability report for different time periods (2025 YTD, and Q3 2024), and both of those reports correctly calculate the PA sales tax using 6%.  I re-ran the report for Q4 2024, and it's using 6.3... % again.

         

        I've cleared my cache as well, but that doesn't make a difference.

         

        Any other thoughts?

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