I’m a new user with little background in finance, and working in Myanmar. The tax system here is quite new and, as a result, tax payments can be a bit irregular (sometimes every quarter, sometimes every six months, usually when the tax office calls).
I would like to use deductions on payslips to record personal income tax deductions, and then move the money into a cash account on pay day, and then to a bank account, until the tax office call to request the tax.
I do as the guide Payslips says.
Currently the tax deductions are showing in Payroll Liabilities. This is fine. However, I am unclear about what to do next with the deductions. Should I make a payment out of the Payroll Liabilities account and then record a manual receipt in a Bank Account that we have set up to keep our tax contributions? I’m not sure what would be best practice
Thanks in advance