I need to pay a bill for my consultant, and per regulation, I must withhold a 5% withholding tax from his professional fee. How do I do this so that the transaction will be recorded in my books as
Create a vendor credit memo for the withholding amount and have it post to a current liability account that you have or will set up to track such withholdings. In the Pay Bills screen for this vendor apply the credit memo to the bill and create check for the balance.
If you like this recorded in a single transaction, just create a Check form (or Expense or Bill) and for deduction portion item show it as a negative amount, see screenshot below.
Single check method is great if Bill has not been entered (or desires to be deleted). Otherwise a Bill Payment check is required and you cannot change one to the other (or attach a non billpay Check to a Bill)
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