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Posting public works reconciliation tax payment to QB Desktop

I completed a public works reconciliation with the State of Washington. As part of the reconciliation process it calculated the difference between total amount of the contract and the gross amount I have reported on our excise tax returns. The difference between the two is the pending retainage. 

The state reconciliation then calculated the amount of sales tax due on the retainage and required I pay it in order to complete the process.

However, I still haven't received the retainage billed to the school district (the municipality involved).

Washington is a cash reporting state (you report when you collect) and I haven't 'collected' it yet according to Quickbooks (the invoice isn't recorded as paid).

So I have now paid the tax in advance of receiving it. The State of Washington is backlogged and hasn't yet posted the reconciliation I submitted over a month ago. And (on a related note) we need to reconcile our bank statement.

So now what? I paid the tax in advance of receiving it in the month of October. I won't actually receive those funds or post them in the normal way to QB until this month (November) if I'm lucky - once the State gets through their backlog and releases the retainage then the school district still needs to process our payment. 

Is there a way to record the tax payment 'in advance' in QB so we can reconcile our bank account? And the payment needs to be recorded for a particular City. I've never run into this before and don't know what to do. Does anyone know the answer? Please help!!

1 Comment 1
QuickBooks Team

Posting public works reconciliation tax payment to QB Desktop

Hello, ascontenta. 


Thank you for choosing QuickBooks as your accounting software. As of this time, In QuickBooks, we don't have an option to record an advance sales tax. Also, in QuickBooks, you can't make an advance payment if you don't have an existing due or outstanding tax liability.


That said, we need to wait for the tax agency to process the transaction.


I also suggest, reach out to an accountant for additional advice to prevent any discrepancy in your book.


For future reference, learn about how to set reminders for your upcoming payroll tax and liability payments through this link: Set up and pay scheduled or custom (unscheduled) liabilities


Let me know if there's anything else you need anything else by commenting below. I'm always right here to help.

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