Tracking B&O Tax Owed on Gross Receipts

SurrendertoCanada

Hi! I set up my business in Wave, and I like the interface a lot. However, my state (WA) is unusual in that it levies a "Business & Occupation" tax on all business income (i.e. a tax on gross receipts). My LLC reports quarterly, and all of my invoices are subject to the same 1.5% flat tax.

I want to set up Wave to keep track of the amount of tax owed as payments come in. The way I envision it, there would be a "B&O Taxes Payable" Liability account that automatically debits with each sale, at the 1.5% rate. When my quarterly taxes are due, I will categorize the payment as an Expense account called "B&O Taxes Paid," and credit the Liability account appropriately to zero out the amount owed.

Another user had a similar need, as covered in this post: https://community.waveapps.com/discussion/4911/how-to-record-use-tax-liability
However, the response made it sound like Wave developers don't see this kind of functionality as important. Believe me, though, if you live in a state with a tax on gross receipts, this is a pretty high-priority requirement!

Is there no way to set this up automatically--or even with a quick click or two on each incoming invoice payment to process the 1.5% liability? If I have to do a manual operation, how can I have each added tax liability clearly linked to its originating income transaction?

Since B&O tax is the main liability in my accounting workflow (my consulting doesn't require sales tax), I really need this feature. It seems like a quick flat tax calculation for each incoming payment ought to be doable, no?

Thanks for your help!

Mikeg

@SurrendertoCanada,
The only way to handle that is through a journal entry on a frequency you feel is appropriate. The reason you can't automate it is because it is tax is not collected by you from the customer i.e. part of the invoice.
You would compute your liability, Sales * 1.5%. Debit B&O Tax expense credit the payable. When you file your quarterly return you would categorize the payment against the payable not the expense. That is because you have already posted the expense through the journal entries.
This is different the article you referenced. That has to do with use tax. Use tax is sales tax due to your state for items you purchased (end user) where sales tax was not charged by the vendor i.e an internet purchase.