Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
I've recently started collecting PA sales tax. When I went to file my latest return, I discovered an issue with the Sales Tax Liability Report. (FYI, shipping is 'generally' taxable in PA).
We had a sale in which the customer bought a taxable item and a non-taxable item. According to PA, the shipping for the order should be allocated between the taxable and exempt items. A simple example: Customer buys a bumper sticker (taxable) for $1, a shirt (tax-exempt) for $9, and pays $4 for shipping, for a total order of $14. In this example, $0.40 of shipping would be allocated to the taxable item ($1/$10 x $4), and the remaining shipping of $3.60 would be allocated to the tax-exempt item.
QuickBooks correctly calculates the sales tax on the sale. The problem is the reporting.
Assuming this is my only sale, I would expect that the Sales Tax Liability Report (STLR) would show the following:
Gross Amount: $14.00
Non Taxable Amount: $12.60 ($9.00 + $3.60)
Taxable Amount: $1.40 ($1.00 + $0.40)
Tax: $0.08 (6% x $1.40)
Instead, the STLR shows the following:
Gross Amount: $14.00
Non Taxable Amount: $9.00
Taxable Amount: $5.00
Tax: $0.08
As you can see, the Gross Amount and the TAX are the only correct figures shown in the current iteration of the Report. As should be obvious, I can't use this report to file my Pennsylvania tax return.
The bigger problem is that I file my PA taxes quarterly, and I don't have just one sale to PA in a quarter. So now, in order to calculate the correct Non-Taxable and Taxable Amounts, I have to create a spreadsheet to track my orders, and then I have to open every single sale to PA in order to allocate the shipping between taxable and non-taxable.
NOTE: I'm not sure how the system would report the Taxable and Non-Taxable Amounts for a sale of only exempt items as this hasn't happened for me yet.
This is a MAJOR flaw in the report and the work around is a HUGE waste of time!
Unfortunately, I don't expect it to be fixed, so now I'm having to rewrite my sales tax procedures to compensate for Intuit's poor programming skills (yet again).
Thanks for reaching out to the Community, DianaAxe. I appreciate your detailed information.
Since your Sales Tax Liability report is displaying incorrect amounts, I'd recommend working with an accounting professional to confirm everything's being entered correctly.
If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
Here's how it works:
Once you've found an accountant, they can be contacted through their Send a message form:
I've also included a detailed resource about working with your Sales Tax Liability report which may come in handy moving forward: Check how much sales tax you owe
Please don't hesitate to send a reply if there's any questions. Have an awesome Thursday!
That's funny. I'm a CPA.
It's a bug in your program.
I forgot to mention that I'm also a ProAdvisor. Perhaps that will change your answer? I would call or chat with someone to report the problem, but it's much easier to explain with the numerical example I provided, and I haven't had much luck with QB support. All I'm looking for here is an acknowledgement that this is a problem and that you will pass it along to someone so they can address it.
I look forward to your canned response regarding the Feedback feature.
I guess I'm not going to get even the canned response.
Having been a QuickBooks user for over 20 years and enduring all of the increasingly ridiculous price hikes in recent years that have been "justified" by Intuit as necessary so that you can continue to provide your "excellent customer service!", I can't say that I'm surprised.
I pointed out a flaw in your software and provided you with a concrete example that could easily be reproduced if you bothered to take my issue seriously. The really bizarre part of this whole issue is that QB calculates the tax correctly! It's just the report that I need to use to file my state sales tax return that is wrong.
I don't recommend QB to anyone. If I were a newly minted accountant, I would avoid QB at any cost. It's very sad what's become of such a formerly solid product. It's common to blame the "bean counters" at companies when they lose sight of the needs of their customers and prioritize their shareholders. Oh the irony!
Hi there, Diana. I know how challenging it must be to encounter an issue with the sales tax report, especially when accuracy is crucial for filing your state sales tax return. We want to ensure your concerns are taken seriously.
We’re committed to improving our software and customer experience, and your insights are crucial for this. Getting in touch with our live support will help our technical team investigate and address the issue more effectively.
Here's how:
Once done, our designated team will review it. You can track your future requests through the QuickBooks Online Feature Requests website.
In addition, you can refer to this article to learn how to personalize your reports in QBO: Customize reports in QBO.
Comment on the post if you still have concerns about Sales tax liability report. I'm always here to help in any way I can.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here