QuickBooks Online 2018 Tutorial: Managing and Paying Sales Taxes

[@rogercaauwe5705]

Thanks very so much Hector for another wonderful video. You explained it very very well. I particularly liked the part about dealing with out of state invoices. However I live in Minnesota and Minnesota has a destination based sale tax system. This video was extremely helpful. Thanks again great one.

[@ksino05]

Very helpful video. Thank you!

[@HectorGarciaCPA]

You welcome

[@umairbadar1665]

to make sure tracking sales tax on each sale and puchases which of the following we should select 1) product and services 2) custumers 3)supplier 4)expense account

[@HectorGarciaCPA]

I don’t answer quiz questions here

[@LuisLorenzo]

Thank you Hector. It is Very appreciated.

[@upishararuwan1881]

Thank you so much!!! You explained it really well. Very helpful.

[@JohnpaulHuinda-z5k]

thank you very much sir

[@HectorGarciaCPA]

:)

[@honglij2104]

Really helpful. I have watched your another QB online video.

[@HectorGarciaCPA]

Thanks..

[@HamidurRahman]

Thanks fo a helpful video , please published all update feature video .

[@HectorGarciaCPA]

I am waiting for them to fix all the issues first.

[@roberte.clarkllc778]

This is an excellent video Hector.

[@HectorGarciaCPA]

Thanks

[@muhammatawezbayew5425]

Hi HEctor , I have a question , PLEASE IT IS ASAP PLEASE , When I run Sales Tax report on my quickbooks , it doesn't show the correct sales , what I mean the SALES (GROSS SALES ) that is need to be taxed doesn't match the actual sales. What can be the reason?

[@msepici]

nice and clear explanation, thank you.

[@HectorGarciaCPA]

Mustafa Sepici glad you liked it

[@likegrammashands2802]

This is incredibly helpful. We are in Pennsylvania. If you can recommend a reasonable CPA just to walk us through the best setup of our state, it would help.

[@HectorGarciaCPA]

Like Grammas Hands hi.. email me [e-mail] I’ll connect you with Andrew Berg CPA whom I trust to recommend outside the Philadelphia area

[@marveliagalindez4895]

Hector thank you very much you are a blessing for me. Can you please explain how to deal with pay pal exenses an Quickbooks fees, how can we recor this is our books , how can we deal with them please , please explain

[@annthans2728]

Hi, Hector. What if instead of clicking record payment, what happened was the bank payment was categorized in the bank feeds instead? No matching done.

[@debbabe2254]

How does QBO take into account sales tax paid on items for resale???

[@estelagrupe5083]

Excelente el video!

[@HectorGarciaCPA]

Estela Grupe gracias

[@felixenrique1912]

Saludos Hector una consulta yo tengo el quickbooks online 2022, pero cuando pongo la factura el impuesto solo marca TAX y no me marca como en tu video por ejemplo florida tax 7% (imprime de seguro tax 7%), yo necesito que salga un impuesto de 1% en la impresion, pero solo me sale TAX

[@HectorGarciaCPA]

No hay forma de separar los Impuestos

[@quintoncarroll4828]

Since eBay is collecting sales tax and remitting them but only the sales tax is showing in QBO, how do I document?

[@HectorGarciaCPA]

I wouldn’t track Sales tax in QBO

[@trinitybanda246]

Hie Hector I ran my Sales by location detail report. The running balance does not have the tax amount in it. How do I make it reflect the price inclusive of tax

[@HectorGarciaCPA]

Sales reports dont include sales tax. You would need to get that report a different way. I teach custoM reports here: hectorgarcia.teachable.com/p/quickbooks-online-custom-reporting-course-update-coming-11-13-21

[@MLDJewell]

Thanks for the video. You helped clear a few things up. Do you have a video explaining how to set up the surtax so that it only calculates on the 1st $5,000? I saw your video for the desktop and couldn't really figure out how to do in on QBO. Thank you!

[@HectorGarciaCPA]

Not for QBO

[@MLDJewell]

@@HectorGarciaCPA Do you plan to create one soon or have any advice for me. I'm canceling my desktop account and starting from scratch on QBO. Thank you!

[@HectorGarciaCPA]

Mary Jewell I don’t have it on my plans.

[@bradgrimmel9448]

How should Use Tax be tracked and paid in Quickbooks Online?

[@login3457]

How to edit or inactive group tax

[@d.michaelstrong]

It would also be helpful to provide how to record a check deposit where sales tax is included so that revenue doesn't include the sales tax.

[@HectorGarciaCPA]

Split it.. the revenue portion and the sales tax portion.

[@wolfiesplace]

If your state provides a Vendor Collection Credit for paying sales tax early, How Would you account for this? With the "Make adjustment" box ?

[@HectorGarciaCPA]

Wolfie's Place yes adjust it by the amount; and use an income account

[@jwpconstructionllc5356]

Your explanation is very clear, thank you. But my QBO screen doesn't have the same screen you have to allow me to add different tax rates for different cities or counties. How do I enable that feature?

[@heribertoolivares922]

I am having the same problem, did you figure it out?

[@jwpconstructionllc5356]

Our QBO account is selected to participate in BETA Testing which means QBO calculates our sales tax for us based on our business location and the location where transactions take place. Intuit purposely removed the feature which allows us to set different sales tax rates for different cities ourselves. I assume your QBO account is also selected to participate in BETA Testing. The sales tax they calculate for us are incorrect and you will have to enter the right amount yourself. I asked to be removed from BETA Testing but was told to call their technical support to do it. I haven't done it, yet.

[@jessicasustaita1]

Thanks for the information, we are in Texas and it isn't allowing us to set up different sales tax either. It is a major problem for us because we do work in several different cities which have different tax rates along with our state tax. I am calling qb support now to ask them to remove us from the BETA testing and see if they can help us out.

[@jwpconstructionllc5356]

Let me know if they are able to resolve this problem for you.

[@civilgod]

Is there a way to capture an Excise tax that is industry specific amount (e.g. $4.20) PER SEGMENT like in the air transportation sector? Using this TAX feature in QBO?

[@HectorGarciaCPA]

No QBO doesn’t allow workarounds for sales tax

[@juancarlospadron3749]

Good evening Hector a question for you : how you handle the sale taxes related to vendors? I know that the AP Allows you to record them. However, what about the transactions downloaded directly from the bank website that include the total amount paid. How this it works? Also how to report them so you can offset the ones for your sales?

[@HectorGarciaCPA]

Make them part of the expense

[@juancarlospadron3749]

Thanks a lot Hector!

[@crystalb6428]

This was helpful but would sales tax be entered in the sales tax center from bank feeds? I have pay pal integration setup and transactions are coming over as sales receipt but in undeposited funds and tax amount is not moving to sales tax payable account

[@HectorGarciaCPA]

PayPal usually does not import sales tax

[@allibag]

Hello Hector, Florida Department of Revenue gives you a 2.5% credit when you pay your sales taxes timely. Ie: if you have a $1000.00 in sales tax you would get a sales credit of $1.75 so I would only need to pay Florida Department of Revenue $68.25. Where would I log the 1.75 on the Sales Tax report?

[@HectorGarciaCPA]

As an adjustment against an income account

[@juliotorres-kv7of]

If I don´t pay taxes because of out of state transactions or sells coudn´t I be fined?

[@HectorGarciaCPA]

If you have nexus in the state that is finning you, yes

[@angiediaz7729]

Hector i have a Tile company and i just started using quickbooks so i made a mistake when set up. The taxes how i can fixed? So what happens was on my invoices the system add taxes but basado on my address no en la de el cliente but i don’t have any idea on how i can fix that

[@HectorGarciaCPA]

Angie Diaz you need to turn off Sales Tax.

[@princesstolentino4015]

Hi Hector! I would want to match a sales tax remitted to the government with the sales tax collection in current liability, however I cannot do this because STaxCollection is not fully recorded. Is it possible to manually record a sales tax collection to complete the amount in order for me to match it?

[@HectorGarciaCPA]

Make a manual sales tax adjustment to Match the liabilities and then make the payment... the adjustment do it against income

[@marveliagalindez4895]

Hector if I am using Quickbooks essentials ,can I file forms like 941, W2 just like quicbooks desktop?

[@HectorGarciaCPA]

No, you need add payroll service and Intuit does the fillings.

[@anagama835]

Hi Hector, I'm paying my sales tax electronically, when doing the bank reconciliation what account should be this payment posted to?

[@HectorGarciaCPA]

Sales tax liabilities

[@laurensmolic5053]

What if I charge sales tax for some customers and not for others? I'm not talking about an tax exempt agency, just customers that I were given a flat rate, including tax.

[@HectorGarciaCPA]

+Lauren Smolic tax exempt customers just don’t charge them tax...

[@TheJacobsmomma]

If the customer is not tax exempt you have to adjust the invoice to include the taxes to final invoice amount. We run into this alot, as we quote taxable customers a flat rate. I've learned sometimes the final amount may be off by a penny due to rounding, no biggie.

[@johnallen6346]

Hi, Hector. This is more of a quickbooks question than a sales tax law question. I currently do the bookkeeping for a local restaurant inn my city. In my state all sales on goods and services is taxed at a flat rate, 6.75%. When recording these items in quickbooks, I have the tax already added on, however, when I go to make a deposit, I have an excess in funds because my program is assuming that sales tax is extra. For example, I sell $500 worth of goods, I record $500 in my bank, but quickbooks wants to record a deposit of $533.75, which isn't correct. It should record deposit of $500 with $466.25 as cash and $33.75 as a sales tax payable, correct? Can you help with my question? Thanks!

[@HectorGarciaCPA]

John Allen you may need to exclude sales tax from the invoic slime items so QuickBooks can calculate correctly

[@johnallen6346]

Hector Garcia CPA how can I properly record sales liability. Would I record it in a sales receipt?

[@princesstolentino4015]

Hi Hector! How should I account tax deposited by the customer, together with the sales receipt.

[@HectorGarciaCPA]

Send it to Sales Tax Liability

[@princesstolentino4015]

Thanks, tax paid monthly and its in the expense. How can I clear the sales tax liability.?

[@HectorGarciaCPA]

princess tolentino against the expense

[@princesstolentino4015]

Thank you so much Hector.

[@annthans2728]

Hi Hector. Hope you're doing great. Would you know an affordable tax course where I can enroll in?

[@HectorGarciaCPA]

Fast forward academy has some good ones

[@annalizarodriguez9530]

@@HectorGarciaCPA can I take this course without being an american or a green card holder?

[@HectorGarciaCPA]

@@annalizarodriguez9530 which course?

[@annalizarodriguez9530]

@@HectorGarciaCPA the one as EA for the Fast Forward Academy. Because I am already enrolled in your monthly subscription course since last month. :-)

[@HectorGarciaCPA]

@@annalizarodriguez9530 I see.. enrolled agent is to get a certification to practice before the IRS. It is limited to US persons. You can take the course; but you cannot get the designation

[@amazingsylvia]

Hi Hector. We downloaded quick books online but there is no possibility to check mark the sales tax. Are they different version of QB. I'm still in my 30 day trial.

[@HectorGarciaCPA]

Sylvia De Freitas you May need to enable the feature..

[@princesstolentino4015]

Hi Hector, there were taxes included in the sales receipt thru paypal. What account is this?

[@HectorGarciaCPA]

princess tolentino sales tax liability

[@ruvimg]

How do i add the sales tax with the percentage that the sales tax is onto the actual invoice So it would say Sales Tax @ 9.9% $99 Total = $1000 Thanks

[@HectorGarciaCPA]

Are you using the US version?

[@ruvimg]

Hector Garcia CPA yes I am, I’m using the online version. It just gives me the total tax and I can’t figure out how to add the tax rate next to it.

[@jessicasustaita1]

We recently upgraded from qb pro to qbo and we aren't able to set up sales tax for different cities. It is only charging one rate which is the state of TX tax rate. This is a big problem for our company since we have several different cities we do work in. Has anyone been able to fix this problem?

[@HectorGarciaCPA]

Jessica Martinez yes they are working on a major upgrade to sales tax... call support ASAP so they can help you... otherwise I can help you, but will cost you $500 :)

[@TheJacobsmomma]

The way we managed this was setting up combined rates by zip code, using the postal 4 digits behind it. We are in the service industry and have to tax to the service address, and the rates can vary within one zip code...why we set up with the 4 digit code. We have had much success managing it this way. This was QB supports suggestion when we stumbled on this issue. When you look up the rates & jurisdictions by address on the comptrollers site, we set it up similar. mycpa.cpa.state.tx.us/atj/ Example: mycpa.cpa.state.tx.us/atj/search?address=501+W+MAIN+ST&city=TOMBALL&zipCode=77375 We set up as "SALES TAX 77375-5535" and set up the jurisdctions (codes) to match. Hope this helps.

[@vipinsharma4786]

how can I put signature in invoice

[@HectorGarciaCPA]

+Vipin Sharma not possible

[@vipinsharma4786]

Thanks for your Input

[@affebanane3039]

How you do the same with pre taxes?

[@HectorGarciaCPA]

I don’t know what that means.

[@ahsanakhter6389]

I enable my company Sales Tax but mistakenly entered the wrong name. Now I can't change it. any help in this regards.

[@HectorGarciaCPA]

Ahsan Akhter maybe call support

[@ahsanakhter6389]

@@HectorGarciaCPA will you support this to me on call ???

[@HectorGarciaCPA]

Ahsan Akhter I charge $350 per hour for support

[@ahsanakhter6389]

@@HectorGarciaCPA I think I have to change accounting software as QBO does support our requirements. 😣😥

[@HectorGarciaCPA]

Ahsan Akhter support covers some aspects of the switch.. but not all of it..

[@derekmontgomery4864]

what if when I click on Taxes....it looks nothing like that>??????

[@HectorGarciaCPA]

They changed the whole screen this year :)

[@sandrarios1413]

Héctor! How can I email you directly?

[@HectorGarciaCPA]

Sandra Rios my email is in the video

[@mohamedkamal9000]

Hi Hector, Could I assign the non-taxable services to some certain taxes agency of my creations like "Taxes Free Agency" then the total of the exempted sales appears in a separate report? what is the pros and cons of that?

[@HectorGarciaCPA]

mohamed kamal in QB online, you can’t do any of that.

[@mohamedkamal9000]

@@HectorGarciaCPA Thanks a lot