Payroll Liability Account Set Up Difficulty
Comments
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Hi Fiona
I would need to know a little more info, to understand better.
If I understand this correctly, you charge the staff 10% on each item (most items), like a tax, do you charge a tax as well.
How do you know how much to pay each staff person or do the all share equally in the staff charge collected monthly. Is it a weekly, monthly thing?
With the little I understand now, when you created the tax item, you can link that to a tax agency, by default it is ATO, you could create a new dummy agency, which would be a supplier, and all tax collected would go to the agency supplier account (money owed). when setting up the agency supplier, you can chose if this is a tax agent, it will ask then for an account to track exp. & Liab., also for sales & purchases. You could set up only one half of the requests.
You could then set up a new payroll item and link it to the staff liability account that you set up to link to the tax agency.
Once set up, you could make the Agency supplier inactive so it would not show up in your AP.
With my limited understanding I only think this would work. If you want contact me and we can discuss it further.
Kim 0429 305300 e: Kim@kwikbooks.com.au0 -
Hi Kim
Thanks so much for your response. I really do appreciate that you have taken the time to answer.
I hope you don’t mind the format of my reply, it just helps me to make sure I answer your questions and don’t miss anything. Please see everything below.
Hi Fiona
I would need to know a little more info, to understand better.
If I understand this correctly, you charge the staff 10% on each item (most items), like a tax, do you charge a tax as well. (Yes: It is similar to a GST – It is charged on food, drinks and accommodation. There are items it is not charged on such as transport/tours/massage where only the 10% staff service charge is applicable. I have it set up as below:Tax Items:
1. 10% Govt Tax
2. 10% Staff Service Charge
3. 10% Govt Tax + 10% Staff Service Charge (Combination of 1 & 2: I set this up as a ‘Tax Group’)
Tax Codes:
1. +10 (When both 10% govt tax and the 10% service charge is applicable)
2. Svc 10 (When only the 10% Staff Service Charge is applicable)
3. PPN (When only the 10% Govt Tax is applicable)
How do you know how much to pay each staff person or do the all share equally in the staff charge collected monthly. Is it a weekly, monthly thing? ( I have four staff that share equally in the staff service charge. I create a report at the end of the month showing the total of staff service charged to guests. This is then divided by four and shared equally on the last day of the month.
With the little I understand now, when you created the tax item, you can link that to a tax agency, by default it is ATO, you could create a new dummy agency, which would be a supplier, and all tax collected would go to the agency supplier account (money owed). ( I have the ‘dummy’ tax agency set up and call it “Staff Service Payment Account”) when setting up the agency supplier, you can chose if this is a tax agent, (That’s correct and I have it marked as a tax agent) it will ask then for an account to track exp. & Liab., also for sales & purchases. You could set up only one half of the requests. ( I have the account set up as ‘Staff Service Earned’. I became completely lost here and really don’t have an understanding of what I am doing. I have both options [account to track exp & lib + account to track sales & purchases] selected to link up to the account I have called “Staff Service Earned”. Is this incorrect?)
You could then set up a new payroll item and link it to the staff liabil ity account that you set up to link to the tax agency. (Like I said, I am bamboozled from here on in. Can you give me a little more detail on how to do this – is my “Staff Liability Account” what I call “Staff Service Earned”?)
Once set up, you could make the Agency supplier inactive so it would not show up in your AP.
With my limited understanding I only think this would work. If you want contact me and we can discuss it further.Thanks so much for your amazing response. I appreciate your efforts enormously.
Fiona
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Hi Fiona
I have responded to your email for now, will post results once we have worked out the kinks0 -
Problem Solved
I can’t thank you enough – it has worked!!The problem with not allowing a tax supplier linked account has been something I couldn’t solve myself.
The COGS account has worked perfectly.
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