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Tax payments

NEWLLCNEWLLC Member Posts: 7

Hi. Wondering the best category to use for local, state, and federal taxes.

Thanks!

in Accounting Technical Support

Comments

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @NEWLLC.

    We have an article on the Help Center that might help you handle paying sales tax reports. You can find it here.

    As for paying other kinds of taxes, I would recommend making new expense accounts for each of them. When you learn the amount you owe, create bills for those amounts and choose the right tax as the expense category. When you pay your taxes, just mark those bills as paid.

  • bensheldonbensheldon Member Posts: 1

    I've struggled with categorizing Federal/State Income Tax payments within Wave Apps because categorizing them as an "expense" impacts my profit/loss reports and net income reports.

    I'm categorizing Federal/State Tax payments as "Retained Earnings" which keeps them out of those reports. I'm accounting for a Sole Proprietorship, so it makes sense because those earnings are retained to me personally and then I pay personal income taxes. I don't know from the standpoint of an LLC or Corp.

    edited December 28, 2018
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