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Vendor tax levy

I received a Notice of Levy from the Calif. EDD instructing me to send all payments owed to a particular vendor to the EDD until further notice. When I pay the vendor invoices QB does not allow me to change the payee to the EDD. What is the best way to record both the invoices and then create checks showing the EDD as payee and the invoices as paid?

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Best answer a month ago

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QuickBooks Team

Re: Vendor tax levy

Hi jfw1,


I'd be glad to help you record your payment to your vendor and IRS/EDD.

 

You can create a Wash/Clearing account (bank type) where you take payments for your vendor's invoices (bills). Make sure you don't put a balance on it.

 

Pay the bills against Wash account. Do not change the payee, so it shows that you pay the vendor.

 

Create a vendor profile for IRS / EDD Levy and create a bill for them. In the Expense section of that bill, choose the Wash account. Then, enter the bill’s reference number in the Description field, and enter the amount.

 

Pay the IRS bill using your checking account. Basically, you'll just relay your vendor's payment to IRS.

 

If you other questions, please feel free to go back to this thread.

1 Comment
QuickBooks Team

Re: Vendor tax levy

Hi jfw1,


I'd be glad to help you record your payment to your vendor and IRS/EDD.

 

You can create a Wash/Clearing account (bank type) where you take payments for your vendor's invoices (bills). Make sure you don't put a balance on it.

 

Pay the bills against Wash account. Do not change the payee, so it shows that you pay the vendor.

 

Create a vendor profile for IRS / EDD Levy and create a bill for them. In the Expense section of that bill, choose the Wash account. Then, enter the bill’s reference number in the Description field, and enter the amount.

 

Pay the IRS bill using your checking account. Basically, you'll just relay your vendor's payment to IRS.

 

If you other questions, please feel free to go back to this thread.

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