1) Tax Authority
- Set up your tax authority as a Vendor in Workamajig.
2) Sales Tax Rate
- Set up Sales Tax Rates.
- This area allows you to set the Tax Liability account and Vendor for the specific tax rate(s).
3) Sales Tax Analysis Report
- Go to Menu > Reports > AR Reports > Sales Tax Analysis Report.
Creating The Payment
There are 3 methods for paying your tax authority. Each is correct. It is more a matter of your personal choice in which works best for your agency.
The end results in all cases will result in GL Transaction entries that Credit = Cash and Debit = Tax Liability Account.
1) Vendor Invoice
- Create a Vendor Invoice/Voucher - The line GL account should be set to the Tax Liability account you designated on the Sales Tax Rate. This invoice will now be available in the Menu > Purchasing > Select Invoices for Payment.
- Print Check
2) Create Check/Payment Only
- Go to Menu > Purchasing > Payments > .
- Enter an Expense line set to the Tax Liability account you designated on the Sales Tax Rate. The payment will be available during your normal Print Check run. If you transfer via an EFT/ACH, simply enter the date or transaction number into the Check Number field.
3) Create Journal Entry
- Go to Menu > Accounting > Journal Entry > .
- The Journal Entry should be Credit = Cash Account and Debit = Tax Liability account, that you designated on the Sales Tax Rate.