I'm watching this video 5 years after it was created, and I still believe it's relevant as of this comment. Thank you for the expertise, and explaining it thoroughly. This is very helpful.
Hector, you are right. Your approach after you worked all of this out is GENIUS! Thank you so much for sharing your knowledge. Love your videos, well done and easy to understand.
OUTSTANDING explanation! I could totally follow along. You are clear and clever and I love how you address what can be complicated transactions and make them understandable and doable. Thank you Hector! You are a wealth of information and I'm grateful of it.
Hello Hector! I have a couple questions on the use tax portion. 1. Entering the use tax transaction on the same day as the purchase records the expense(e.g. April) before it’s paid(e.g. May). Under cash basis, would this be handled differently, are there any other steps, or is it still okay to do this? 2. Can you advise on a use tax solution for QBO or create a video on that?
I think I figured it out in QBO... Have to use an "Invoice" to get a "Subtotal" because you cannot get a subtotal in a "Sales Receipt". Then you have to receive payment to the "Undeposited Funds" account.
We are in Florida and wanted to clarify the payment of Sales Tax (Accrual vs Cash), if a Client accepts a proposal and pays 50% down payment - do we pay Sales Tax on the down payment or the full Invoice? I have noticed that QB sets up the Tax payment only upon the payment vs the full amount of the invoice so not sure what's right. Thank you in advance !
In the Use Tax chapter, how does the new item accounts for Use Tax Purchase & Reverse Use Tax item affect the income statement? Could they they be posted to the same chart of accounts?
Hi Hector Two questions. If we have a single contract but do multiple billings through out the project are we required to pay surtax on each billing or on the first invoice of the contract? 2nd Has QuickBooks Enterprise fixed the issue and created a way to calculate surtax?
Thank you for this! Super helpful! I was able to set this up easily in QB desktop. Do you have the same video for setting the surtax group item up in quickbooks online?
Thank you for all your help. Our company paid our sales and use tax with the co credit card. QB only lets you make payments with a bank account. I can’t change that we paid by cc how do I make the adjustment in QB. Mardi
One of the questions I have is how to track sales tax paid to retail establishments that you are not set up with? This cannot of course be added to the sales tax paid to the Department of taxation.
Minor correction to your video: At minute 21:49 you create the tax item USE and you say to make it "non-taxable", but instead you should have said to make it taxable. It has to be "taxable" otherwise it won't calculate the use tax below
Hi Hector, if we purchase the items out of state and will resale to an end consumer and the type of services is attached to real property which means we can't charge the client sales taxes however we need to report that sales tax purchase. Would the use tax be calculated on the clients address or our address? The reason I am asking is because of surtax calculation. Thank you great video
I am trying to translate this over to quickbooks online, but I do have a question on the process compared to QBD. What would you charge for a zoom call to go over my question with me?
Also, regarding SurTax (Dade County), if the total sale is under $5,000, do you simply charge 7% and submit the whole payment as Sales Tax? Is there no need to break it down when you submit payment (6% Sales Tax + 1% Discretionary) if the sale is under $5,000?
@@HectorGarciaCPA So now what do to record use tax? If you would like to know I also figured out a way to globally circumvent the location-based sales tax in QuickBooks online I can show you!
Hi Hector. Thank you for sharing this. I don't know what I'm doing wrong because I set up all the items exactly as you've shown but the tax line item doesn't calculate the tax because the USE TAX PURCHASE item is set to "USE" and that sales tax item is NON TAXABLE. Could you please help.
Hi! This seems easy, but I am having a little bit of trouble following because my screens are different on quickbooks online. Do you have a step by step written out by chance? Thanks!!
Great job Hector. It helped me confirm some methods I have been using with my clients. I recommend Hector's videos when you need to learn QuickBooks advanced concepts. Vic Madeira
How can I record Use tax that we will need to remit in QB ? We are entering bills for client want to record Use tax due and have report at end of the month to know what we need to remit
@@HectorGarciaCPA Can you point me to where that is (or let me know title)? I saw your 2018 QBO Tutorial on Managing and Paying Sales Tax. However, I did not see any mention of Use Tax.
Hector if you use Square to receive a payment for a service, and they charge a tax. That tax is reported as no taxable? And how do you report it in QBD in California. Let see I got a grooms sale of 100 the tax that square is $ 2 and a tip $10 and a fee of (2.44) pls help I have a headache 🤕
Hector Garcia CPA So that means that those taxes do I have to reported them in the taxes right? And this video will be the way to report them in QBD? And even I do services no selling anything right? If Square is taking off from me those taxes would appear as negative?
Liliana Reyes QB doesn’t report anything to the GOVT; just gives you reports.. usually you report with paper forms or with the state’s website.. get a CA accountant to help you
Hector Garcia CPA thank you. I know that QB doesn’t report to IRS..-when I said report means transcript or put it in QB.. lol but thank you. You helped me a lot.
Liliana Reyes IRS is not involved with Sales Tax... that would be your State’s Revenue Department. And yes you want to log it in QB separately so when you pay it, it comes from that number
I have the 2016 version of quickbooks for mac desktop. I had troubles making the use tax tracker work. Is it because I have a version that is two years old?
Regarding the $5000 rule, you should have said, that it only applies for purchases of the same products, and not based on total sale amount. Let's say you buy $4000 + $1000, that rule does not apply then.
Hector your videos are informative, but for a newbie, its so hard to follow you. Can you please slow down how you explain things and how you click around. Just be a little more aware that not everyone knows the in's and outs of quick books to know where to go with what you are doing. Ex: you said there was sales tax, and you added it to the system, (how did you do this) also you said you would explain how to use the "use tax", but then you removed/hid it from the screen , and i had to watch the video multiple times to see how you even did that. I appreciate the videos, and i hope you can take my comment into consideration.
How to set my BRT Tax, explained it for me BRT Tax is oth.curr.liability BRT or Rent tax in Expense Record any transaction or make a video. How to collect brt 2% tax from invoice and pay it to government.
I'm watching this video 5 years after it was created, and I still believe it's relevant as of this comment. Thank you for the expertise, and explaining it thoroughly. This is very helpful.
Nothing has changed
Hector, you are right. Your approach after you worked all of this out is GENIUS! Thank you so much for sharing your knowledge. Love your videos, well done and easy to understand.
Glad it was useful
OUTSTANDING explanation! I could totally follow along. You are clear and clever and I love how you address what can be complicated transactions and make them understandable and doable. Thank you Hector! You are a wealth of information and I'm grateful of it.
:)
Good job Hector with the Use Tax. This solved a big headache for my client!
Good
Hello Hector! I have a couple questions on the use tax portion.
1. Entering the use tax transaction on the same day as the purchase records the expense(e.g. April) before it’s paid(e.g. May). Under cash basis, would this be handled differently, are there any other steps, or is it still okay to do this?
2. Can you advise on a use tax solution for QBO or create a video on that?
I think I figured it out in QBO... Have to use an "Invoice" to get a "Subtotal" because you cannot get a subtotal in a "Sales Receipt". Then you have to receive payment to the "Undeposited Funds" account.
We are in Florida and wanted to clarify the payment of Sales Tax (Accrual vs Cash), if a Client accepts a proposal and pays 50% down payment - do we pay Sales Tax on the down payment or the full Invoice? I have noticed that QB sets up the Tax payment only upon the payment vs the full amount of the invoice so not sure what's right. Thank you in advance !
Your are right, your Use Tax formula is brilliant. Thanks very much for posting this. Question; how best link it to the vendor/purchase? Thanks.
You really cant
In the Use Tax chapter, how does the new item accounts for Use Tax Purchase & Reverse Use Tax item affect the income statement? Could they they be posted to the same chart of accounts?
Hi Hector Two questions. If we have a single contract but do multiple billings through out the project are we required to pay surtax on each billing or on the first invoice of the contract? 2nd Has QuickBooks Enterprise fixed the issue and created a way to calculate surtax?
I dont think so
Thank you for this! Super helpful! I was able to set this up easily in QB desktop. Do you have the same video for setting the surtax group item up in quickbooks online?
Not possible
@@HectorGarciaCPA How would you then do the surtax for different Florida counties in QBO?
Thank you for all your help. Our company paid our sales and use tax with the co credit card. QB only lets you make payments with a bank account. I can’t change that we paid by cc how do I make the adjustment in QB. Mardi
You may need to use a journal entry to adjust it.
One of the questions I have is how to track sales tax paid to retail establishments that you are not set up with? This cannot of course be added to the sales tax paid to the Department of taxation.
Minor correction to your video: At minute 21:49 you create the tax item USE and you say to make it "non-taxable", but instead you should have said to make it taxable. It has to be "taxable" otherwise it won't calculate the use tax below
Thanks
What account and type did you link to Item #1 on the Sales Receipt "Use Tax Purchase"? Thank you for creating and sharing this workaround!
Expense
@@HectorGarciaCPA Is this the same account that the "Reverse Use Tax Item" is posted to?
Hi Hector, if we purchase the items out of state and will resale to an end consumer and the type of services is attached to real property which means we can't charge the client sales taxes however we need to report that sales tax purchase. Would the use tax be calculated on the clients address or our address? The reason I am asking is because of surtax calculation. Thank you great video
Sorry there may be some actual tax advice in this question which I can’t do via RUclips
I am trying to translate this over to quickbooks online, but I do have a question on the process compared to QBD. What would you charge for a zoom call to go over my question with me?
$750 for a level 2 tech in my office
Also, regarding SurTax (Dade County), if the total sale is under $5,000, do you simply charge 7% and submit the whole payment as Sales Tax? Is there no need to break it down when you submit payment (6% Sales Tax + 1% Discretionary) if the sale is under $5,000?
loyo999 you remit the whole thing, the sales tax return has a place to report the surtax
Thank you!
I just switched from Desktop to online.... How do you do the "Use Tax - Reverse Item" in QuickBooks Online?
Not possible anymore
@@HectorGarciaCPA So now what do to record use tax? If you would like to know I also figured out a way to globally circumvent the location-based sales tax in QuickBooks online I can show you!
Does your Use Tax workaround work on the Online version by creating an Invoice?
loyo999 is a bit different
I would guess you don't offer a video for the Online version......
Hi Hector. Thank you for sharing this. I don't know what I'm doing wrong because I set up all the items exactly as you've shown but the tax line item doesn't calculate the tax because the USE TAX PURCHASE item is set to "USE" and that sales tax item is NON TAXABLE. Could you please help.
Without looking at it, its hard to see what you are missing
Hi! This seems easy, but I am having a little bit of trouble following because my screens are different on quickbooks online. Do you have a step by step written out by chance? Thanks!!
It’s not going to be the same in QB online... this one is focused on Desktop
You can’t do any of these things in QB Online, so you won’t find a video
Thank you so much for your answer! Is there any references anywhere on how to do this on quickbooks online?
hi please guide me i already have paid tax in purchasing how i can show my payable sales tax as income in Quickbook
QB doesn’t support taxes paid in purchases (at least the US version doesn’t)
Great video covering the madness businesses have to go thru! Very informative.
loyo999 yes
what is tax in expense of Ch.of account
In the US; tax is usually not an expense
Great job Hector. It helped me confirm some methods I have been using with my clients. I recommend Hector's videos when you need to learn QuickBooks advanced concepts. Vic Madeira
Vic Madeira that surtax and use tax is such a pain.
How can I record Use tax that we will need to remit in QB ? We are entering bills for client want to record Use tax due and have report at end of the month to know what we need to remit
You would need to adjust the tax liability manually
How do calculate Tax-Included Item Pricing?
Thats for non-US companies, i don’t support those
Thank you Hector! Very helpful!
Can you provide an explanation on how to track and pay Use Tax in Quickbooks Online 2018? Thanks.
yes.. there is a video on that
@@HectorGarciaCPA Can you point me to where that is (or let me know title)? I saw your 2018 QBO Tutorial on Managing and Paying Sales Tax. However, I did not see any mention of Use Tax.
Hector if you use Square to receive a payment for a service, and they charge a tax. That tax is reported as no taxable? And how do you report it in QBD in California. Let see I got a grooms sale of 100 the tax that square is $ 2 and a tip $10 and a fee of (2.44) pls help I have a headache 🤕
Liliana Reyes if you collect sales tax.. you have to remit it to the GOVT
Hector Garcia CPA So that means that those taxes do I have to reported them in the taxes right? And this video will be the way to report them in QBD? And even I do services no selling anything right? If Square is taking off from me those taxes would appear as negative?
Liliana Reyes QB doesn’t report anything to the GOVT; just gives you reports.. usually you report with paper forms or with the state’s website.. get a CA accountant to help you
Hector Garcia CPA thank you. I know that QB doesn’t report to IRS..-when I said report means transcript or put it in QB.. lol but thank you. You helped me a lot.
Liliana Reyes IRS is not involved with Sales Tax... that would be your State’s Revenue Department. And yes you want to log it in QB separately so when you pay it, it comes from that number
I have the 2016 version of quickbooks for mac desktop. I had troubles making the use tax tracker work. Is it because I have a version that is two years old?
kkea4 mac is not supported any more
I'm not sure what you mean that it is not supported. My quickbooks is working on my laptop.
kkea4 is discontinued... so Intuit does not support it any more :(
Regarding the $5000 rule, you should have said, that it only applies for purchases of the same products, and not based on total sale amount. Let's say you buy $4000 + $1000, that rule does not apply then.
Leslie Laguna this is true.. but it might vary by state..
Great information. Well done video/presentation. Thank you!
Thanks
Hector your videos are informative, but for a newbie, its so hard to follow you. Can you please slow down how you explain things and how you click around. Just be a little more aware that not everyone knows the in's and outs of quick books to know where to go with what you are doing.
Ex: you said there was sales tax, and you added it to the system, (how did you do this) also you said you would explain how to use the "use tax", but then you removed/hid it from the screen , and i had to watch the video multiple times to see how you even did that. I appreciate the videos, and i hope you can take my comment into consideration.
nice video
useful
interesting
This guys has no clue...
How to set my BRT Tax, explained it for me
BRT Tax is oth.curr.liability
BRT or Rent tax in Expense
Record any transaction or make a video.
How to collect brt 2% tax from invoice and pay it to government.
@@pervezkhn dont know know BRT tax