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natalieortiz
Level 1
posted
‎June 15, 2020 11:43 AM
last updated ‎October 05, 2020 9:48 PM

Transient Occupancy Tax

I have a client that needs to collect Transient Occupancy Tax and remit to their county's tax collector. Is there a way to add a local agency in the tax center? It seems that my only option in California is the CDTFA. 

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Best answer June 15, 2020
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Best Answers
MaryLandT
Moderator
Moderator
‎June 15, 2020 01:32 PM

Transient Occupancy Tax

Hello there, natalieortiz,

 

You may want to enter the Transient Occupancy Tax manually so you track this local tax. However, you won't be able to pay sales tax through the Sales Tax Center since it uses a special liability account that you can't link to products and services.

 

Let me show you how:

 

Step 1: Create an Other Current Liability account

  1. Select the Gear icon at the top, then Chart of Accounts.
  2. In the Chart of Accounts, select the New button.
  3. From the Account Type drop-down, choose Other Current Liabilities.
  4. In the Name field, enter Sales Tax Payable – Manual Adjustment.
  5. Select Save and close.

Step 2: Create a Sales Tax item

  1. Select the Gear icon at the top, then Products and Services.
       a. In the Products and Services page, select New.
       b. Select Non-Inventory or Service for Item Type.
       c. Enter Sales Tax in the Name and Description fields.
  2. Leave the Sales price/rate field blank.
  3. In the Income account field, choose the account you set up in Step 1.
  4. Make sure the Is taxable box is unchecked.
  5. Select Save and close.

Step 3: Add the item to your sales transactions

  1. Create the invoice or sales receipt as usual.
  2. Add the sales tax item created in Step 2.
  3. Manually enter the amount for the Sales Tax line item.
  4. Select Save and close.

To determine the amount of sales tax owed:

  1. Select the Gear icon at the top, then Chart of Accounts.
  2. Find the Other Current liability account an in the Action column, select View register.
  3. The balance listed is the amount of sales tax currently owed.

To pay the sales tax from this other current liability account:

  1. Select + New.
  2. Select Check.
  3. In the Payee field, select the vendor receiving the sales tax payments.
  4. In the Account field, select the Sales Tax liability account you created.
  5. Enter the amount of your sales tax payment.
  6. Select Save and close.

Check out the Sales tax in QuickBooks Online page to help you manage your local taxes.

 

Upon sharing this solution, I still suggest consulting  your tax accountant. He/She might have specific instructions on how to handle the Transient Occupancy Tax collection.

 

Stay in touch if you need additional information. I'm always right here to help.

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3 Comments 3
MaryLandT
Moderator
Moderator
‎June 15, 2020 01:32 PM

Transient Occupancy Tax

Hello there, natalieortiz,

 

You may want to enter the Transient Occupancy Tax manually so you track this local tax. However, you won't be able to pay sales tax through the Sales Tax Center since it uses a special liability account that you can't link to products and services.

 

Let me show you how:

 

Step 1: Create an Other Current Liability account

  1. Select the Gear icon at the top, then Chart of Accounts.
  2. In the Chart of Accounts, select the New button.
  3. From the Account Type drop-down, choose Other Current Liabilities.
  4. In the Name field, enter Sales Tax Payable – Manual Adjustment.
  5. Select Save and close.

Step 2: Create a Sales Tax item

  1. Select the Gear icon at the top, then Products and Services.
       a. In the Products and Services page, select New.
       b. Select Non-Inventory or Service for Item Type.
       c. Enter Sales Tax in the Name and Description fields.
  2. Leave the Sales price/rate field blank.
  3. In the Income account field, choose the account you set up in Step 1.
  4. Make sure the Is taxable box is unchecked.
  5. Select Save and close.

Step 3: Add the item to your sales transactions

  1. Create the invoice or sales receipt as usual.
  2. Add the sales tax item created in Step 2.
  3. Manually enter the amount for the Sales Tax line item.
  4. Select Save and close.

To determine the amount of sales tax owed:

  1. Select the Gear icon at the top, then Chart of Accounts.
  2. Find the Other Current liability account an in the Action column, select View register.
  3. The balance listed is the amount of sales tax currently owed.

To pay the sales tax from this other current liability account:

  1. Select + New.
  2. Select Check.
  3. In the Payee field, select the vendor receiving the sales tax payments.
  4. In the Account field, select the Sales Tax liability account you created.
  5. Enter the amount of your sales tax payment.
  6. Select Save and close.

Check out the Sales tax in QuickBooks Online page to help you manage your local taxes.

 

Upon sharing this solution, I still suggest consulting  your tax accountant. He/She might have specific instructions on how to handle the Transient Occupancy Tax collection.

 

Stay in touch if you need additional information. I'm always right here to help.

Reply
Wendi
Level 2
‎April 25, 2024 10:12 AM

Transient Occupancy Tax

I cant believe there is still no easier way to add this!

Reply
Jelayca V
QuickBooks Team
QuickBooks Team
‎April 25, 2024 11:58 AM

Transient Occupancy Tax

Hi Wendi, I understand how important it is for you to have a simpler way to record and add a transient occupancy tax in QuickBooks Online (QBO). I am here to help you with this. 

 

Currently, you can manually add the transient occupancy tax to track this local tax. However, you won't be able to pay sales tax through the Sales Tax Center. This is because the Sales Tax Center uses a special liability account that you can't link to products and services. 

 

To get started, you can create an Other Current Liability account. Next, create a sales tax item and add the item to your sales transactions. For detailed instructions, please refer to the steps provided by our colleague above. 

 

Moreover, we can see your commitment to compliance and efficiency in managing taxes. With that, we encourage you to share your suggestion with us directly, as your input will guide our efforts to improve our services and provide a better experience for you with QuickBooks Online. To submit feedback, here's how: 

 

  1. Select Settings, then click Feedback.
  2. Enter your comments or product suggestions. 
  3. Hit Next to submit Feedback.

 

We value your input and it's shared with our Product Development team to help improve your experience in QBO. To track your feature requests, you can visit the QuickBooks Online Feature Requests website.

 

Check out the Sales tax in QuickBooks Online page to help you manage your local taxes.

 

Don't hesitate to reach out to us if you have further questions about taxes in QBO. The Community is always available to help. Take care. 

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