Sales Tax QBO

I see you're confused about the procedure for clearing the sales tax in QuickBooks Online (QBO) after making an online payment to the California Department of Tax and Fee Administration (CDTFA), @panda0210.

Let me share some information and help clear sales tax showing overdue. 

Once you have made the tax payment online or through a method outside of QuickBooks, we can assist you in recording this transaction in your QBO account.

Here's how: 

1. Navigate to Taxes, then Sales tax (Take me there).
2. From the Sales Tax Owed list, choose the tax agency you're recording the payment for, then click Record Tax Payment.
3. From the Bank Account dropdown, choose the account you're making the payment from.
4. Select the Payment Date.
5. Enter the tax payment amount in the Tax Payment field.
6. When you're ready, click Record Tax Payment. If you need to print a check for the payment, check the Print a Check checkbox and then select Record Payment and Print Check.

Additionally, I'll be sharing the following articles that provide a comprehensive guide on how QuickBooks Online calculates sales tax and focus on guiding users through adding tax agencies, setting up tax rates, and assigning tax codes to products and services:

• Learn how QuickBooks Online calculates sales tax
• Set up where you collect sales tax in QuickBooks Online.

Feel at ease to tag my name if you have further queries about your sales tax payment. We value your business and are committed to ensuring your satisfaction.

Hi @Rubielyn_J 

Thank you for your prompt reply.

I attached screenshots of what I did. Please check and confirm if I did it right.

And also,should I enter any penalties paid (CDTFA)? If so, is it the same process?

Thanks,

Richel

Hi @Rubielyn_J ,

Here is attached the other screenshot.

Thanks again,

Richel

Hello there, @panda0210. Thank you for attaching the screenshots. 

You're on the right track. It seems that you have entered the information correctly and successfully recorded the payments.

Regarding entering penalties paid to CDTFA, yes, you can enter them. However, please keep in mind that when you pay sales tax online to CDTFA, the payment is recorded outside of QuickBooks Online. Therefore, you need to add an adjustment to record the payment in QuickBooks Online and balance your books. 

To do that, here's how:
 

1. Go to Taxes.
2. Find the tax period you need to adjust, then select View Tax Return.
3. Click on +Add an Adjustment. 
4. Under Add an adjustment, you may now select Reason, enter Adjustment date, select Account, enter Amount, and enter a valid Memo. 
5. Hit Add.

Please see my screenshot below:

In addition, you may visit this useful article guides on how QuickBooks Online calculates sales tax and how to remove an incorrect sales tax due adjustments: 

• Learn how QuickBooks Online calculates sales tax
• Create or delete a sales tax adjustment in QuickBooks Online

Feel free to reach out if you need further assistance regarding adding adjustments in QuickBooks Online. I'm always here to help. Best regards.

Hi @Jelayca V,

Thank you for the help.

I entered the adjustment date for June because it was a penalty for the month of June. Am I right? And in the payment date, I put the date when it was paid (August).

Please see the screenshot attached.

Thanks,

Richel