Adjustment for Tax Payment

You can handle this tax payment adjustment in QuickBooks by recording the extra amount paid using a journal entry. Since the additional amount wasn't accounted for in your payable balance, you’ll need to adjust it properly.

Go to + New and Select Journal Entry.
Debit: The extra amount to your Sales Tax Payable account (to adjust what was originally owed).
Credit: The same amount to your Bank Account (to reflect the additional payment made).

Alternatively, if your state allows applying the overpayment to future tax periods, you can post the extra amount as a credit to Sales Tax Payable, so it offsets the next filing.

Hope this helps!

You'll have to record the payment and adjust your accounts accordingly, Lisa. The additional amount paid should be recorded as an expense, and you'll also need to align your tax payable account. Let's ensure everything is aligned and recorded accurately.

First, hover over the + New icon and click on Journal entry to accurately record the additional tax expense and the payment shown from your resources.

Here's a step-by-step journal entry steps you can take:

1. In the upper left corner, look for the + New icon.
2. Select Journal entry.
3. Choose an account for your journal entry.
4. Debit the Sales Tax Expense account with the additional amount paid. 
5. Credit Cash account or Bank account with the same amount. This shows the payment made from your resources.
6. Debit the Sales Tax Payable account if the initial payment was under-recorded.
7. Once everything looks good, hit Save.

Furthermore, if the initial payment was under-recorded in the Sales Tax Payable account, you should debit this account to adjust the balance to the actual amount paid. It's also crucial to debit or credit another relevant account to ensure everything balances correctly.

Lastly, it's essential to ensure the amounts are accurate and always corroborate the entries with actual invoices and payment details for accuracy.

For future reference, here's an article you can browse to see how much sales tax you owe once you utilize the Sales Tax Liability report: Check how much sales tax you owe in QuickBooks Online.

On top of that, I highly suggest considering QuickBooks Live Bookkeeping to boost your accounting efficiency and maintain perfect financial records. This service offers individualized support suited specifically for your business needs, guaranteeing precision and completeness in your financial documentation. By entrusting these essential tasks to QuickBooks, you can free up precious time and concentrate more on strategic aspects that propel your business forward and ensure its success.

It has been a pleasure assisting you today, Lisa. If you need any more assistance or have more questions about sales tax or any other concerns, please feel free to reach out at any time. We're here to help you navigate through your financial queries smoothly.

@TimotiSbr  This is a good answer, though I would add that it depends in part on why they had to pay more than they had allocated for sales tax payable.

If the extra amount was actually in the whole dollars range, it may be that they owed interest and penalties for late payment and/or filing.

You're absolutely right. If the extra amount paid includes interest or penalties, it should be recorded separately for clearer financial tracking. In that case, instead of debiting Sales Tax Payable for the full amount, you'd split it:

- Debit Sales Tax Payable (for the original tax amount owed)
- Debit Interest Expense (for any interest charged)
- Debit Penalties Expense (if applicable)
- Credit Bank Account (for the total payment made)

This way, the extra cost is properly categorized, and your books remain accurate.