In Pennsylvania anytime a business sells a phone or prepaid time card, we are required to charge a $1.65 emergency 911 fee. This fee is collected with our sales tax. We currently have automatic sales tax turned on and would like to know how one would record the collection and remittance of these payments? Thanks!
Thank you for the reply. I have already tried this method, but the problem is that this fee is collected by the state with our sales tax payment. Because of this our sales tax payments can not be matched to the sales tax center and it also throws off our PA Sales Tax Liabilities account. I tried to set up a new sales tax with compound parts but it only allows us to set up a percentage for tax and not a dollar amount.
Thank you for trying out the steps above, @JASommer.
Allow me to jump in and provide more details to help you.
The steps given by my colleague is correct. You don't need to create a new sales tax item to denote the emergency fee.
Instead, you only have to deselect the Tax checkbox on your Emergency Fee line item. This way, no sales tax would be calculated from the fee. At the same time, your Sales Tax Liabilities account won't be off.
Please let me know if you have any other concerns. I'd be glad to help you.