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:

From the Tasks menu, do one of the following:

Select Payments.
Select Bills and then Pay Bills.

In the Vendor ID field, select the appropriate tax authority.
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.

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