QuickBooks Online Sales Tax Payments

Would you like to know what happens in QuickBooks online when you easily record a sales tax payment well then stay tuned to this article where we will learn how to record paying sales tax.

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Paying sales tax

Paying sales tax in QuickBooks online also only takes several seconds. You must record the payment from the sales tax center. If you want the sales tax center to reflect the fact that particular tax period has been paid. You must pay for a specific sales tax period at the moment that you're paying sales tax and the payment will be recorded like any other transaction that you would record in QuickBooks online.

The payment will affect the reports in QuickBooks online the same way that any other payment in any other situation would affect the QuickBooks online reports.

QuickBooks online sales tax return

QuickBooks online assumes that you are filing a QuickBooks online sales tax return with the sales tax payment.

QuickBooks online assumes that the payment was physically sent at the moment you record the payment.

Sales tax liabilities to Paid Sales tax section

November 17th 2020 we paid the overdue amount of 12.50 from the sales tax period July 1 to September 30.

Now if we do that what will be the result?  Well in the sales tax center, Sales tax liabilities change to Paid Sales tax section. The overdue amount of $12.50 that you see the Sales tax liabilities will disappear and show up instead at the very top in the section of Paid Sales tax section don't forget to set the date range wide enough. So that you can see how it moves from the Sales tax liabilities section to Paid Sales tax section.

 

What will be the result in the trial balance?  after recording the sales tax payment.  Well the sales tax payable (Massachusetts) that we owe will decrease because we paid some and the amount that's indicated owed after that will decrease to 62.50.

Also because we're paying cash in bank decreases by the amount we're paying and because we're paying $12.50 and cash in the bank has a zero balance cash in the bank will show up in the trial balance for the first time as a negative twelve dollars and fifty cents.

How to record Sales tax Payment?  

Let’s take a look at how to record Sales tax Payment?  The way to record sales tax payment is to-- open the sales tax center and make the date range wide enough to see the sales tax period that you're paying for.

So if you only keep at the current month you won't see anything overdue.  Because we know if we make the date going back to September and click refresh we know that the prior period’s tax return and tax payment was due back on October 20.

So the way that we pay this is first to click view return. Now of course this is just a summary of everything that would normally go on the tax form that you would have to send to your state tax department when you send in your tax payments all it does is show you the relevant summary information.

Record Payment

All you have to do to record a payment is to click record payment. now you have to tell QuickBooks the payment date and we said in our example it would be November 17^th 2020 and you have to tell QuickBooks which bank account the payment is being paid from and because we only have one bank type of account on the list.

We click here and click record payment now we can close out this window or we can just click back to sales tax center now. The payment of 12.50 or the amount of 12.50 has now moved from the overdue section of the sales tax center to the paid section of the sales tax center. For the 12.50 and the only thing upcoming is the 62.50.  That you see is a different sales tax period not payable yet.

 

Trial Balance Analysis after the Record Payment Posting.

The grand finale is to check the trial balance. We click reports and double-click trial balance and you can see that the Massachusetts tax department the account in the trial balance that represents what we owe has decreased to 62.50. if we double click you can scroll across and you can see that we originally owed seventy five dollars before this payment and this payment is recorded on the last line see we had these sales that accumulated the sales tax and then this last sales tax payment the last transaction on the bottom decreases by the amount we paid and the remaining amount we owed is 62 and 50 cents.