QuickBooks: Sales Tax and Payroll

Name: QuickBooks: Sales Tax and Payroll
Author: Cindy McGuckin

How to manage payroll and calculate sales tax.

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Course: On-Demand

(cool music) I want to talk to you in this video about how QuickBooks calculates sales tax. When you set up your company file, you put in the address of your company. Based on that address, QuickBooks knows where you're located, and then it can look at charging the appropriate taxes. If you have a business like a storefront and people come to you, you're just charge that one rate where your actual business is located. However, if you deliver items to other counties or cities, then you need to collect that sales tax, as well as the state tax and QuickBooks can figure all of that out for you based on the the address for your customers. It looks specifically at the state and the zip code. There are several things involved with sales tax. The first thing is we're going to have to tell QuickBooks that we do charge sales tax. Sales tax is typically only charged on physical items that you sell, not services. We're going to have to go into all of our products and tell QuickBooks that that product is taxable. We'll also have to go to each customer and tell QuickBooks that customer is taxable. Sometimes you have non-profit customers and they would not be subject to sales tax. There's an option for that in the customer setup. What QuickBooks is going to do is it's going to look at the address that you set up for your company file. It'll look at the state and the zip code and based on that information, it'll decide which tax it should be charged. If you have a business and people come to your store, you only need to charge the rate for the county or entity that you're in. If you deliver products to other areas in your state, then you have to charge sales tax on whatever that area sales tax suits. If you deliver products to other areas in your state, you'll want to collect that area's sales tax. Now every state is different, but most states have a single statewide tax that everyone collects. In addition to that, the different counties, the voters have opted in those counties to maybe charge an extra 1% for transportation or an extra 1% to fix the roads. Every county is different and you'll need to know which counties have which taxes. And luckily for you, QuickBooks will know that based on your state. Let's go over to the navigation pane and click on taxes. The first thing we want to do is click on get started, and now it's going to get my tax rates based on my company and the state and zip code. If you did not set the state and zip code up, when you set up your company file, you'll need to go do that first. I'll click Next. Now it's saying that we think these are the agencies for the taxes you need to collect. You'll want to go down the list and check off the correct ones. When you do charge a customer a flat rate of let's just say 8% for example in California, that 8% might be a combination of several different taxes. Let's say that you're in Arizona and you actually charge these two taxes. You would actually be charging your customer 9.1% and you can see that's two different taxes. Now, whichever ones you go through and check off, you'll also need to pick the agency to which you pay that tax. Some states, you pay everything to the state agency and they distribute the taxes. Other states, you pay to the different agencies. So over here, if this is Arizona, I would want to pick the Arizona department of revenue. Same thing down here. (cool music) This one's in California though. So we'll go ahead and pick the California board of equalization and we'll click Next. Now here, it's just asking you to review your rates. You'll just click Save, and then it's going to set up your tax center. (cool music) Now it says you're all set. This is just showing you what it's done in the background as far as setting up each one of the rates for you. You can just hit continue and if you want to view the sales tax center, you just click on this. The next thing it asks you is how often do you file your sales tax. You'll want to get with your department of revenue to find out you can choose monthly, quarterly, or yearly. Most of the time it's monthly. If you wanted to see if your filing frequency is correct, you could either call your local department of revenue or go to the source right here. I'm going to click on next agency. And if it's the same thing, then you'll go ahead and choose monthly again and then click Save. (cool music) And now your sales tax rates have been set up. This is your sales tax due window. And when you get ready to pay your sales tax, you'll be able to come here and see how much you owe, and then you'll be able to view your return as well. And that's how you initially set up sales tax in QuickBooks. Make sure you go to each customer and each product and check off whether they're subject to sales tax or not. (cool music)

Advanced Provider : Cindy McGuckin 6 Lessons · 34m in Arabic, German, English, Spanish, French, Portuguese, Chinese

Course Description

In this course, you’ll learn the functions to calculate sales tax,how to add sales tax manually, and how to pay any sales tax liabilities. You’ll also see how to manage payroll, manage payroll subscriptions, and set up new employees on payroll as your business grows. Finally, you’ll explore manual payroll set up when you want to bypass the automated functions.

What You'll Learn

Calculate sales tax in QuickBooks and add sales tax manually
Pay sales tax liabilities in QuickBooks
Set up and manage payroll as your business grows
Manage payroll subscriptions in QuickBooks
Set up new employees on payroll
Configure payroll manually to bypass the automated functions

Key Takeaways

QuickBooks provides functions to calculate sales tax, add it manually, and pay sales tax liabilities.
The course covers managing payroll, including payroll subscriptions and setting up new employees as a business grows.
Manual payroll setup is available for users who want to bypass the automated functions.
The course builds skills in payroll administration, payroll computation, payroll practices, and payroll tax within QuickBooks.

Frequently Asked Questions

What does this QuickBooks course cover?

It covers calculating sales tax, adding sales tax manually, and paying sales tax liabilities, as well as managing payroll, managing payroll subscriptions, setting up new employees on payroll, and setting up payroll manually to bypass automated functions.

What skills will I gain from this course?

You will develop skills in payroll administration, payroll computation, payroll practices, payroll tax, and using QuickBooks accounting software, supporting QuickBooks Certification.

Does the course explain manual payroll setup?

Yes. It includes setting up payroll manually for when you want to bypass the automated functions.

What lessons are included in this course?

The lessons are Sales Tax in QuickBooks, Manually Add Sales Tax, Paying Liabilities, Payroll Subscriptions, Setting Up Employees, and Setting Up Payroll Manually.