How to Record a Sales Tax Payment in QuickBooks?
After you review the sales tax payable, you can use the Pay Sales Tax window to write a check to the tax agency (do not use the Write Checks window). To record a sales tax payment, follow these eight steps.
This feature works the same in versions 2011–2016 of QuickBooks.
On the Home page, click Manage Sales Tax.
In the Manage Sales Tax window, click Pay Sales Tax. The Pay Sales Tax dialog box opens.
From the Pay From Account drop-down list, select the bank account to deduct the sales tax payment from.
In the Check Date field, type or select the date to print on the check.
In the Show sales tax due through field, type or select the period end date for the tax period.
In the Starting Check No. field, accept the default check number or assign a check number as appropriate.
In the table, click on the sales tax items to be paid. If you need to make a payment for less than the full amount, edit the value(s) in the Amt. Paid column.
Review the information, then click OK.
QuickBooks automatically writes checks to the tax agencies selected and records the transactions in the bank account selected. You can print the checks at this time or at a later time. Sales tax totals and amounts due are automatically updated to show that the tax agencies have been paid for the selected tax period.
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How to Manually Make a Sales Tax Payment in QuickBooks?
Although QuickBooks business accounting software automatically tracks and calculates the sales tax you owe, you’ll need to make your sales tax payment manually. QuickBooks includes a dedicated Pay Sales Tax tool for handling this payment, so always use this tool rather than the Write Checks or Pay Bills features to keep your bookkeeping accurate and your sales tax reports up to date. The Pay Sales Tax window displays the amount of sales tax you owe and any sales tax adjustments you need to apply to the payment.
Record a Sales Tax Payment
When you collect sales tax from customers on behalf of tax agencies, you will be required to turn those payments over to them. QuickBooks Online Sales Tax Center makes it easy for you to track sales tax liabilities collected, for each tax jurisdiction, the tax payments you have already made, and the balance due. The Sales Tax Center is the best place to record sales tax payments because you can see all your recent payments on a single page. You can view your sales tax owed by month, quarter, or year, and adjust which period you need. You can also adjust your accounting basis – cash or accrual.
Step 1. Choose Taxes, then Sales Tax from the menu on the left.
Step 2. Select the tax agency you are recording the payment for in the “Sales Tax Owed” list.
Step 3. Click Record Tax Payment at the bottom of the list.
Step 4. Enter specific information:
a) The bank account you are making the payment from
b) The payment date
c) The ending date for the tax period
d) The amount of the tax you are paying
e) To make an adjustment to the amount, select Make Adjustment and enter information about the adjustment.
f) Any notes about the payment you want to make.
Step 5. Click Record Tax Payment.
Delete a Sales Tax Payment:
Step 1. Choose Taxes, then Sales Tax from the menu on the left.
Step 2. Under “Recent Sales Tax Payments”, highlight the payment in question.
Step 3. Click Delete Payment.
Step 4. Click Yes on the confirmation screen.
Note: After a successful deletion, the page does not refresh; however, do not try to delete again as this will display an error message, saying that it cannot be deleted, because it was already deleted. To confirm that the payment has been successfully deleted, perform another search for the payment.
Edit a Sales Tax Payment Amount
QuickBooks Online will not allow you to edit a tax payment; however, you have to delete the payment and record a new one. Use the preceding steps to first delete, then record a new payment.
View Sales Tax Liability Report
Step 1. Choose Taxes, then Sales Tax from the menu on the left.
Step 2. Under “Related Tasks”, click View sales tax liability report. (The report will show each agency, the taxable amount of sales, and the tax owed).
View a report of all your sales tax payments:
Step 1. Choose Taxes, then Sales Tax from the menu on the left.
Step 2. Under “Recent Sales Tax Payments”, click View All.
Step 3. You will be taken to a transaction report that lists all your sales tax payments. You can adjust the date range or click Customize in top left of screen to further narrow this report for your needs.
Troubleshoot Common Error
For any number of reasons, you may receive error messages while trying to navigate sales tax transactions. The most common error:
“An error occurred while deleting the transaction: We’re sorry, we can’t delete filed tax right now. Please try again later.”
This error can be caused by either the books being closed for the period of the transaction or when the Sales Tax Payment has been matched to a banking transaction.
Follow these steps to fix:
Step 1. Click the gear icon at your company name in top right of screen.
Step 2. Click Company Settings
Step 3. Select the Advanced on the left side menu
Step 4. Click the pencil icon toward the right of Accounting
Step 5. Uncheck the “Close the books” box
Step 6. If the transaction was not matched to a banking download, attempt to delete the tax payment again.
If the transaction was matched to a banking download follow the instructions below to unmatch the transaction:
Step 1. On the left side menu click Transactions, then Banking.
Step 2. Select the account that was used to pay for the sales tax payment.
Step 3. Click the “In QuickBooks” tab, then find the transaction with the right date and amount for the payment.
Step 4. Once the matched payment has been found, click “undo” on the right, then attempt to delete the tax payment again.
If you have been using QuickBooks Online for a while, and paid sales tax using an earlier method, you may need to record sales tax payments using both the earlier method and the Sales Tax Center for a while. For existing transactions using the earlier sales tax method, record sales tax payments as you have in the past – using Write Check, for example. You can record sales tax payments in the Sales Tax Center for new transactions that charge the new rates you set up.
Call us at Quickbooks Our Toll- Free Number
+1(855)548 3394