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JASommer
Level 1

fee

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!

3 Comments
Charies_M
Moderator

fee

Hello there, JASommer.

 

Thanks for taking the time reaching out to us. I'd be happy to help you record fees in QuickBooks Online (QBO).

 

You can create a service item for the emergency fee and apply it on your invoice. I'd be glad to walk you through how to do it below: 

 

  1. Go to the Gear icon.
  2. Under Lists, select Products and Services.
  3. Click New.
  4. Click Service.
  5. Enter the necessary information and make sure to enter an Expense account as your account.
  6. Select Save and close.

 

Here's an article to learn more creating service item: How to change the account for a product/service item.

 

Once done you can now apply it to your invoice. I've attached another screenshot for your reference.

 

invoice.PNG

 

In case you'd like to know more about how the new Automated Sales Tax works in QBO: Set up and use Automated Sales Tax.

 

Don't hesitate to reach out to me if you have additional questions and I'll surely get back to you.

JASommer
Level 1

fee


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.

Alessandra_B
QuickBooks Team

fee

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.

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