- Set up sales tax in QuickBooks Desktop
- Make sales and collect sales tax
- Run report
Reports > Vendors & Payables > Sales Tax Liability
- This will give you the numbers for your sales tax liability
- Log into MN e-Services
- File the appropriate quarter
- Enter the information from your sales tax liability report
- Pay sales and use tax
- Print transaction for your tax records
- In QuickBooks navigate to
Vendors > Sales Tax > Pay Sales Tax
- If you have paid your previous sales tax appropriately you should only have the last quarter’s tax numbers listed
- Confirm the check date is the date you paid the taxes
- Confirm you have the last quarter date selected
- Adjust the tax amount as needed Note: Minnesota rounds the amount to whole dollars. This will mean that you will have to adjust the tax paid up or down.
- Confirm that the
Adjustment Dateis the date you paid the taxes
- Select your
Sales Tax Vendor
- Select your
Note: If you round down you will recieve a credit. That credit needs to go somewhere in QuickBooks so you will have to set up an
Incomeaccount to track it. The same is true if you have to round up. Except for this you will need an
- Select the type of adjustment.
Increase Sales Tax Byfor rounding up (or if you have to pay a late fee) or
Reduce Sales Tax Byfor rounding down.
- Enter the
Amountof the increase or reduction
- In the memo I find it helpful to enter the reason for the adjustment (e.g. Sales Tax Adjustment – Round up)
- Select each of the line items you would like to pay including any adjustments
- That is it you have paid for your taxes and tracked them in QuickBooks
Just a note… I am not an authority figure on QuickBooks. This is just what has worked for me.
I had a mess when I paid the taxes in QuickBooks with a check instead of the
Pay Taxes feature. I had to make some adjustments. See the Sales Tax Payable is incorrect after using the Write Cheques window to pay sales tax heading on the How to resolve common sales tax issues QuickBooks page.