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How do I get sales tax collected in a PayPal account to appear in the Sales Tax Liability Report

dave479

Hi - I collect Sales tax in PayPal. this account is assigned to the business account. I have another liability account called sales tax where the split PayPal sales tax is transferred to. How do I get this to appear in the Business sales tax liability report.
Thanks,

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Quicken Kristina

Hello @dave479,

Thank you for reaching out! To clarify, are some or all of the tax transactions not showing up in your Business Sales Tax Liability report? Is the sales tax reflected in the invoices you create?

I look forward to your reply!

dave479

Hi Kristina,

Thanks - none of the PayPal transactions show up in the sales tax report.

If I try to create an invoice with sales tax, the sales tax

amount is stuck at $0.00 and does not add sales tax to the invoice.

Thanks

Quicken Kristina

Thank you for your reply,

I notice that the Tax checkbox for the item is not checked. That may be the reason you're encountering this issue. Quicken thinks the item is not taxable.

To make an item taxable, go to Window>Products & Services.

Click the Taxable checkbox to the right of the item you want to mark as taxable.

Once that is done, on the invoice, you should be able to select (or create) a tax rate and the tax will be calculated.

I hope this helps!

dave479

Thank you for that help. That was successful in creating a new Sales Tax Account. However, when I go back to PayPal transactions, the split line for sales tax can't be transferred to the Sales tax account (it doesn't recognize the account as being able to be transferred to). what is the method for linking the sales tax portion of a PayPal transaction to the Sales Tax account?

Thanks

Quicken Kristina

Thank you for your response,

According to our help article on Sales Tax accounts:

Sales Tax is a liability account used to track the sales tax you collect from customers that must be paid to a tax agency (e.g., state or local government). A liability account records money your business owes to others. Sales tax is considered a short-term liability because it is typically due within a short period, such as a month or a quarter. This account helps you monitor and ensure compliance with tax requirements.

It's for tracking what you owe, and isn't intended to be used like a bank account that you can transfer funds into and out of.

For more information on liability accounts, see this help article: https://info.quicken.com/mac/setting-up-asset-and-liability-accounts

Thank you!

dave479

Thanks - when I receive a PayPal payment, the payment is split into two categories:

- Business Income

- Sales tax collected

I have been using a bank escrow account to transfer the liability of the sales tax in the split transaction, this allows for proper reporting and sales tax balance owed. When I pay the sales tax, the transaction came out of the escrow account. In the new business tool, the new sales tax liability account I would expect that the PayPal sales tax received would not be counted as income - and would be entered in the liability sales tax register.

Not sure how this new implementation works.

Thanks

jacobs

The sales tax liability account in Quicken Mac is designed to track sales tax you charge and collect from the invoices you generate. If you create an invoice for each PayPal sale you made, setting your sales items as taxable, you would see the sales tax liability increase with each item invoiced. But if you aren't creating invoices for your sales, and are just tracking your payment receipts, then you will have to create a manual tax liability account for the split of the sales tax collected by PayPal.