Paying your Sales Tax Agencies in QuickBooks

Posted by on Feb 16, 2011 in Sales Tax | 4 comments

I last left you with the filing of the Sales Tax in the CRA site. This site will allow you to process a refund but the payment of an outstanding amount has to be done through QuickBooks or your bank. I should clarify this.

You can set up a payee with your on-line bank account or you can also create a check in QuickBooks to pay the Receiver General (GST) or Minister of Finance (PST).

If you remember this screen, we had chosen to File online with QuickBooks but we also could have chosen Paper or other filing method which will allow us to pay via a check that we generate.

From your Menu Bar at the top of the Home screen, click on Sales Tax/File Sales Tax.  This will take you to the File Sales Tax screen where you will choose the following: Tax Agency – Receiver General, Dates – This Sales Tax Quarter, File ReturnPrint Return Yes, and in the Payment screen Pay Later.

The Filing Process Complete screen will appear with a message saying Congratulations! You have completed the filing process for the Receiver General. Remember to send a completed sales tax return and your payment (if any) to the tax agency. Click on OK will close the screen and send you back to the Home page.

QuickBooks will have created a journal entry that credits the Accounts Payable vendor Receiver General with a 126.29 amount, another credit of 51.91 to the GST/HST Payable account  and a debit of 178.20 to the GST/HST Payable account.

If you now go to the Vendor Centre you will see that the Receiver General has an outstanding amount of 126.29 waiting to be paid.  Since you are already in the Vendor Centre, click on New Transactions/Pay Bills which will open up the Pay Bills screen. Even though you have completed an exercise using Pay Bills before, I will walk you through this once more.

Click on the box that will highlight the line that has Receiver General as the Vendor. Change the Date to April 25 since the quarters return end date was March 31, make sure Cheque is chosen in the Method field, click on To be printed, your Bank is RBC or the default bank and Pay Selected Bills tab.

From the Payment Summary screen click on Print Cheques and when the Select Cheques to Print screen appears, mark Receiver General and then click on OK, Voucher and Print.

Once printed, tear off the bottom have of the stub and attach it to your Tax Agency Report. Compete the  CRA GST34-2 E form, take it to your bank along with the cheque and submit it for payment. Your bank stamped return portion that is given back to you, becomes a part of the Tax Agency report that you will file in a GST folder at your office.

Next will be a series to do with Banking.

Remember that you can follow me on Twitter @twitter.com/QuikBooksTrainr for tips and updates also.

www.quickbookstrained.com is now mobile friendly. From the web address you can choose Options/Mobile formatted and the site will appear in all its living colour for you to view. Check it out.

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4 Responses to “Paying your Sales Tax Agencies in QuickBooks”

  1. I’m having issues with past GST refunds ever since I upgraded to QB Pro 2010. Unassigned tax code and/or unreported amounts pops up. The actual GST which I owe is correct. When I try to assign tax lines or other changes things get even more out of line and I can’t change them back. RESOLVE asks me to assign the discrepancy to an account or to add it to my next tax payment which is not needed. Why is this program so stupid that it can’t recognize that my GST in the past is paid and move on with my company within the new tracking format? At wits end on this one.

  2. I have a problem that apparently is unique to Quickbooks Pro 2010. After I pay a bill to Receiver General, the bill does not disappear from the “Pay Bills” Screen. The cheque register shows that the correct amount has come out of the account, but I don’t know where to check for the other side of the transaction.

    • Hi Lois, find the screen where you paid the bill. If you can find it in the Register then at the top of the screen you will find Edit Transaction. Once that screen is open, press Ctrl Y on your keyboard. This will bring up the Journal Entry that QB’s made for that transaction. You will then see the Debit and Credit side, the accounts it was posted to, date, etc. Hope this helps.

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