Is There a Way to Handle Sales Taxes in QuickBooks If You Owe Multiple Government Agencies?
Yes, QuickBooks allows you to set up each portion of sales taxes separately as a sales tax item and then as a group sales tax.
For instance, in North Carolina, we must collect sales tax for state, county and transit taxes.
You would set up each of the three as a separate sales tax item with its specific sales tax percentage. Then, set up a group sales tax item and specify that all three of these be included for the total amount owed.
In your customer sales orders and invoices, the total amount of the sales tax would show and be charged.
On your sales tax report within QuickBooks, you would see the total, as well as the individual component totals—all the individual data you would need to file your state's sales tax. You won't need to do any more manual calculations!
Please email accounting questions you would like considered for the column to HGatter@AccountingSupportLLC.com with the subject line of "Ask the Accountant."
Harriet Gatter, owner of Accounting Support LLC, was an ad specialty distributor for 23 years and an adjunct professor of accounting at Neumann University. She sold her ad specialty business in 2012, became certified as a QuickBooks ProAdvisor, and now works exclusively with ad specialty distributors nationwide on their QuickBooks, order management and accounting needs.