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Withholding Tax Treatment in QuickBooks

QuickBooks SupportCategory: TransactionsWithholding Tax Treatment in QuickBooks
Lekan asked 6 years ago

We are an oil and gas servicing firm with offices in Lagos and PH. We are having issues tracking withholding tax in QuickBooks, after recording customer’s payment, there is a balance attributable to withholding tax in our book, how do we write it off, the same thing also applies to our contractors, we deduct 10% from their invoice and pay the 90% to their account.
Please help us out on this.

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1 Answers
BigResources Staff answered 6 years ago

QuickBooks isn’t difficult to navigate when it comes to treating withholding tax, for withholding tax payable which is the 10% deductible from your contractor’s invoice, you can use journal entries to write the balance off my debiting your payable account and credit your WHT payable. This will write off the balances on payable to zero.
For customers, you can use the “write off the balance” feature at the bottom of the “receive payment” window; this will help you write off any receivable balances to WHT receivable.

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Last modified: May 25, 2018