Hello,
I’m trying to use tax codes. I have made the customs tax code called “5%” with tax rate 5.263%. When I’ve made the payment to the employee I need to withhold this tax from this payment. So, my transaction looks like:
At this point everything is good. But I can’t find on what account this amount of taxes was allocated. My “Tax payable” account is zero.
What tax are you deducting from employee expense claims? The tax codes are usually used for VAT and/or Sales Taxes
It’s local tax that deducted from an employe.
But my question it’s not about it. If this option (“Tax”) is available for such kind of transaction, therefore this deducted amount (157.89 in my example) should be allocated on some account. But I didn’t see it anywhere…
You need to post a screen image of the edit screen for the tax code
It could be a question of dates - can you post a screen copy of your summary page(s)
No, I meant the Summary page not your balance sheet
Right, I think I see what’s wrong.
The tax code is entered on the payment to the payment, so the accounting entries are
Debit Employee Clearing account 3157.89
Credit Bank account 3157.89
When you created the expense claim you only entered
Debit “some expense account” 3000
Credit Employee Clearing account
You need to include the Tax in the expense claim or you could add a separate line on the payment form to debit the tax payable account
@Irina_Rovinskaya, you are looking at this in entirely the wrong fashion. Withholding tax should be set up as a payslip deduction item. See Set up payslip items | Manager.
You enter the withholding when you create the payslip, not when you pay the employee his or her balance from Employee clearing account. The tax amount appears in Payroll liabilities.
I thought it was an expense claim not a payroll problem - don’t know why. Sorry, ignore my posts
