This is done every quarter, Jan-Mar, Apr-June, July-Sept, and Oct-Dec. Any sales tax we have brought in during that quarter must now be turned into the State.  For clarification, italics is sales numbers and underlined numbers are on the sales tax return.

*If you are paying Sales Tax on Jake’s Creative Woodworks you will need to use the form that has place for two different sales tax rates (Jake pays a 4.225% sales tax rate, rather than the 5.725% everyone else pays). You can find this form at https://dor.mo.gov/forms/53-1.pdf or search form 53-1 on their website (https://dor.mo.gov/).  Instructions for this form down below.

*In QBO, click on Taxes > View Return (date is automatic).  Click on one of the “See report” links (they are all the same). Print.  Click on both Tax Amount Figures (for the state & Morgan Co) and export both to excel.  Delete all the $0.00 lines; make sure columns sill add up to total listed.  If any lines have $0 tax (no tax collected), it was an exempt sale to a non-exempt customer; remove the line and update grand total. Make Name column narrow to print on one page; print landscape.

*To find Gross Sales #s (QBO quit correctly calculating sales on the Sales Tax Liability Report): Run custom report, “Invoices for Sales Tax Report”.  Print last page only.  Since sales tax is figured off of the ‘pre-tax’ amount and NOT grand total, take the amount of tax we collected (from the Sales Tax Liability Report) and subtract that from the Total Sales from Last Quarter and use the new amount for the “Gross Receipts”.

*Fill in the Gross Sales under ‘Gross Receipts‘.

*On the report (that you printed in step 1), look at the Tax Amount to get the total Taxable Sales for that quarter.

*Subtract taxable amount on excel report from Gross Sales. This is the ‘Adjustments’ value (non-taxable sales).

*On the report, go through and highlight all the taxable amounts of Jake’s invoices.

*Subtract Jake’s taxable sales from total taxable sales, to find total other taxable sales, at the regular rate (will use for line 2 in next step).

*On page 2 of form, fill out two lines:

1. Line for Jake’s sales tax: item code 4001; Gross Receipts=Subtotal of all his taxable invoices; Adjustment=$0; Taxable Sales=same # as in Gross Receipts; Tax rate=4.225; Amount of Tax=Taxable sales X Tax rate (should be the same as what you collected from Jake; if not, somewhere someone forgot to manually charge Jake the correct amount of tax).
2. Other/Regular taxable sales: Gross Receipts=Total gross receipts (pg.1) minus amount of total gross receipts declaring for Jake; Adjustment=same as # on page 1; Taxable Sales=this line’s Gross Receipts minus Adjustments; Amount of Tax = (this line) taxable sales X tax rate (5.725).

*Total the columns and write at bottom of page (they should match line 1 on page 1).  Carry the grand total amount of tax collected over to page one ‘Amount of Tax‘.  Figure the 2% timely payment (if paying before the end of the month), the Balance Due, and the Pay this Amount.

*Look at a previous form (stored under Missouri Department of Revenue), to know how to fill in all the other data cells (make sure you fill in the # for the current quarter)!

*Give a copy of form & reports for Tim to look over and approve.  He will sign and return.

To pay: select Taxes > View Return > Add Adjustment.  Pick Credit/Discount.  Account=Door Sales.  Amount=difference between form & QBO.  Add (QBO should match form to the penny).  Record payment.  Fill in date & bank account.  Select to print check.  Record payment.  Go to the ‘Print Checks’ and print it.  Write on the address, and mail with the sales tax return papers.

*Copy last quarter’s bill under Missouri Department of Revenue, changing to this quarter’s attachment, Bill date (today) and Bill no (1st/2nd/3rd/4th Q yyyy).

ES 11-1-21