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County Taxes
Posted: Thu Sep 28, 2017 5:27 pm
by Turning Point
I need to know how to post our county tax. The previous bookkeeper had it being posted with the pastors salary but not affecting it. I'm sure that's not correct. It is an extra tax that all businesses pay no matter, employees do not have to pay it.
Re: County Taxes
Posted: Thu Sep 28, 2017 6:23 pm
by NeilZ
Turning Point wrote:I need to know how to post our county tax. The previous bookkeeper had it being posted with the pastors salary but not affecting it. I'm sure that's not correct. It is an extra tax that all businesses pay no matter, employees do not have to pay it.
Posted with the pastor's salary ?? This is a employer liability, and needs to be setup as one.
Is this tax a 'flat' tax or based on a percentage?
In any case there needs to be a:
1. Expense account - this is usually installed as a default by the accounting setup.
2. Liability account - you will probably need to set this up since the previous bookkeeper wasn't using it.
There are also some payroll module changes that may have to be made. However, the way it works normally is that when you process payroll, the system will calculate the tax (if its a percentage) or just use the flat tax entered and create a transaction when you post moving funds from the expense account to the liability. At the end of the month, or quarter you would then write a check using checking account as the CR account, and the County Tax Liability account as the DB account.
If you need more information about setting up the Pay Item for this let us know.