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Level 1

Since Hawaii's gross excise tax is not a sales tax, does QB have Hawaii version or can you tell me how to set this up in QB

 
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QuickBooks Team

Since Hawaii's gross excise tax is not a sales tax, does QB have Hawaii version or can you tell me how to set this up in QB

I understand that excise tax is a different type of tax, bktalks2u.

 

The best option I can suggest is to create a service or a non-inventory item and a liability account. We'll have to manually calculate and add it on the transaction as other line item.excise.PNG

Let's set up a liability account first.

  1. From the Accounting tab, select Chart of Accounts.
  2. Click on New button. Select a liability for both Account Type and Detail Type.
  3. Enter an account name, then select Save and Close.

We can now set up an item.

  1. Go to Sales tab and select Products and Services.
  2. Click the New button and select either Non-inventory or Service.
  3. You can enter Excise Tax as its Name
  4. On the Income account drop-down, select the liability account you've created. Hit Save and close.

You can pull the Transaction Detail by Account report to see the total excise tax. Simply search and select this report on the Reports tab. Just make that the reporting date is correct.

 

Comment below if you need more assistance. I'll always be here to help you.

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Level 3

Since Hawaii's gross excise tax is not a sales tax, does QB have Hawaii version or can you tell me how to set this up in QB

Hi @bktalks2u

 

I agree with @AlexV, this is similar to how I’ve set up Hawaii GET for several QBO clients. The only difference is that I would create a GET Income account and map the Service or Non-inventory item to that income account (instead of the liability account). This is because GET passed through to customers has to be included in income.

 

What I usually do is create the invoice/sales receipt and fill in everything before I calculate GET. Then I add the Service/Non-inventory General Excise Tax item last. Unfortunately, since there are not enough decimal places to enter the full pass-through rate, I have not been able to figure out a way for the system to calculate GET for me. I manually calculate it by multiplying the pre-tax subtotal on invoices/sales receipts by the appropriate pass-through rate:

  • Honolulu, Kauai, Hawaii 4.712%
  • Maui 4.1666%

I enter the result into the amount column and save the invoice/sales receipt.

 

When I file and remit GET, I report all income for the tax period, including the GET passthrough income. As a check, I compare the GET that is due to the GET income in QBO. They should be roughly the same (give or take for rounding). I record the payment as GET expense.

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Level 1

Since Hawaii's gross excise tax is not a sales tax, does QB have Hawaii version or can you tell me how to set this up in QB

Hi,

 

Can you help me set up GET. We are an independent contractor and I need to set up to pay GET but not pass it along to our client.

 

Thanks,

Jo

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QuickBooks Team

Since Hawaii's gross excise tax is not a sales tax, does QB have Hawaii version or can you tell me how to set this up in QB

Good day, @jogreene.

 

Since you wanted to set up GET but not pass it along to your client. You can set up a liability account for this.

 

Here's how:

 

  1. On your left navigation pane, Go to the Accounting tab.
  2. Select Chart of Accounts click on New button.
  3. Choose liability for both Account Type and Detail Type.
  4. Type in the account name, then select Save and Close.

Feel free to read these article for future reference:

Drop any additional questions, I'm always here to answer.

 

 

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Level 3

Since Hawaii's gross excise tax is not a sales tax, does QB have Hawaii version or can you tell me how to set this up in QB

Hi @jogreene

 

Since you’re not passing the GET to customers, the only thing you need to set up is a GET expense account. When you pay the GET, categorize the payment in QBO under the GET expense account (this is assuming you want to record expenses on a cash basis).

 

 

However, if you wanted to accrue the expense at the end of each period, you will need to set up an Accrued GET liability account; At the end of the GET period, you will create a Journal Entry:

  • Date it for the end of the GET period (could be monthly, quarterly, semi-annually depending on your required filing frequency)
  • Debit the GET expense account for the amount due with GET return
  • Credit the Accrued GET liability account for the same amount

You will notice the liability on the balance sheet. When you pay the GET, categorize the payment in QBO under the Accrued GET liability account; this will zero out the liability balance.

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