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I'm using QuickBooks Enterprise Solutions 22.0. Apparently, I am not using the Pay Sales Tax module correctly because the Sales Tax Liability account is not being debited after payments are made, it just continues to increase each month. BTW, I'm paying the sales tax via the Florida Department of Revenue website. I run the Sales Tax Liability Report, then use that info to pay the sales tax online with a checking account. Then I go back to the QB Pay Sales Tax module and enter the amount paid for each county per the STLR. I thought I was done. But I now notice that the Sales Tax Liability account has steadily increased. The account is not being reduced by this method. I am missing something. Please advise. Thanks.
Solved! Go to Solution.
Hi kt1100,
I'm here to enlighten you as to why the sales tax payable account is increasing.
When you record tax payments, it is advisable to use the Pay Sales Tax window. Writing a check will cause you to increase your liability since it will not affect the liability account. To fix it, you'll have to reenter those tax payments. I'll guide you through the steps.
First, let's back up your QuickBooks file so we can restore it if ever you run into problems.
Second, find the incorrect sales tax payments through the Bank Register page. Then, let's reenter those payments. Here's how:
Then, repeat steps number 2 to 10 for each payment before proceeding.
Afterward, let's remove the original payment transaction from other areas in QuickBooks. Here's how:
Then, repeat steps number 3 to 5 for the rest of the payments.
Once done, you can run these reports to verify that the issue is solved:
Furthermore, I've added this article on how you can handle cash basis sales tax: Handle cash basis sales tax.
I'm always around whenever you have concerns about recording sales tax payments.
Hi kt1100,
I'm here to enlighten you as to why the sales tax payable account is increasing.
When you record tax payments, it is advisable to use the Pay Sales Tax window. Writing a check will cause you to increase your liability since it will not affect the liability account. To fix it, you'll have to reenter those tax payments. I'll guide you through the steps.
First, let's back up your QuickBooks file so we can restore it if ever you run into problems.
Second, find the incorrect sales tax payments through the Bank Register page. Then, let's reenter those payments. Here's how:
Then, repeat steps number 2 to 10 for each payment before proceeding.
Afterward, let's remove the original payment transaction from other areas in QuickBooks. Here's how:
Then, repeat steps number 3 to 5 for the rest of the payments.
Once done, you can run these reports to verify that the issue is solved:
Furthermore, I've added this article on how you can handle cash basis sales tax: Handle cash basis sales tax.
I'm always around whenever you have concerns about recording sales tax payments.
OK, got it, thanks. Actually, I was mistaken. Upon closer inspection of the Sales Tax Payable ledger, I see that in fact my payments have debited the account. When I posed my question I was alarmed by the large balance in the Sales Tax Payable account. I forgot - didn't think - that when I pay the monthly Florida sales tax, I am only paying the tax collected in the previous period and not the entire sales tax liability. DOH! My bad.
Thanks for updating us on this, kt1100.
On behalf of my colleague, Adrian_A, you're most welcome. Please know that the QuickBooks Community will always be around to lend you a hand any time you need guidance.
You can always keep in touch if you need further assistance with any QuickBooks-related tasks. I hope you have a pleasant day ahead. Stay safe always!
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