Pay Taxes

How Do I...

To pay sales taxes, payroll taxes, or other local, state, or federal taxes, you must first set up the payee as a vendor in Maintain Vendors. For example, if you pay federal taxes to your bank using federal coupons, enter the bank as a vendor. Sales taxes may require checks written to local tax authorities.

To pay taxes, follow these steps:

1. From the Tasks menu, do one of the following:
• Select Payments.
• Select Bills and then Pay Bills.
2. In the Vendor ID field, select the appropriate tax authority.
3. In the line-entry area, enter a description of the tax and the amount to be paid.

For sales taxes, the amount due is determined by running the Taxable/Exempt Sales report. Use the appropriate G/L liability account for taxes (for example, Sales Tax Payable). Tell me more about the Taxable/Exempt Sales report.

4. Click Save to record the payment.

What do you want to do next?

• Look up the current payment status of a purchase invoice
• Pay vendors or enter payments for purchases
• Preview checks before printing them
• Write a check to a customer (refund)
• Edit a record or transaction
• Set up a vendor
• Perform other accounts payable tasks
• Read the payments overview

Published: March 21, 2017
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