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Old 08-15-2002, 12:57 AM
Marian Marian is offline
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Join Date: Jan 2002
Location: Sunshine Coast (Australia)
Posts: 39
GST - Chart of Accounts Tax set-up

Have just installed Q-books Pro 2002 and would like to know the correct set-up for tracking tax. Here in Australia we have the 'simplified' tax system with the GST, plus PAYG tax withheld from employees, plus our personal tax etc. Quickbooks doesn't seem to have anything in their 'help' about setting up the Chart of Accounts to track these taxes.
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Old 08-15-2002, 08:15 AM
gibbo gibbo is offline
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Join Date: Oct 2001
Location: Australia
Posts: 1,595
The only thing simple about our tax system is the rate!
Version 8.1 had "Tax Paid" and "Tax Collected" sub-accounts. This was because the Govt originally insisted that software MUST maintain the information in separate control accounts. This was obviously stupid, because February 2001 they simplified the system and allowed it to be tracked in one account. QuickBokks now uses this one account for all new files set up in Version 2002. Any data file converted from 8.1 will still maintain the two accounts.
I would use the single account for both Tax received and tax paid.
For wages and PAYG withheld, we have to use a liability account. Set up your Wages expense account with sub accounts for Net Wages, PAYG Withheld and any other components you want to track. Set up a Payroll Other Current Liability account with subs for PAYG Withheld and again any other components you need to track.
When you write a wage cheque (note I must be an Aussie cause I spelt in with que), enter the net amount as the cheque amount. In the splits, enter a number of lines. The first is to the Net wage subaccount for what they are getting now. The second line is to the PAYG subaccount of wages. Now enter a line to the PAYG sub account of the PAyroll liability as a NEGATIVE amount exactly the same amount as the PAYG to the expense account. This shows it as an expense in the period in which it occurs, but throws it off to the Balance sheet until you pay it. Do the same for any other withheld components.
When you pay your BAS, you write the PAYG amount against the Liability account, not the expense account. if you use the BAS form in QuickBooks, you use the expense accounts to link to the W1 form, but the liability accounts to link to the W2 form. Just a note on Superannuation. While we consider it to be an expense as part of wages, for GST purposes it is not reportable as wages. This because goods or services are not being supplied to us. We are actually paying someone else's premiums. They consider that to be a non - reportable money movement.
I hope this helps.
John Gibson
johngibson at
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