tracking use tax
Recent PA Sales and Use tax audits have raised the question “What is use tax?” Most use tax liability occurrences happen when taxable purchases are made on the Internet, through catalogs or purchases from out-of-state vendors. In these instances your vendor does NOT charge 6% PA sales tax on your purchase. If you buy items that are subject to PA sales tax and you were not charged tax, you are liable for Use Tax. Tracking Use Tax in Peachtree or QuickBooks is simple. You will track the Use Tax liability in the same transaction that you account for the purchase.
Whether the purchase will be entered via Tasks/Payments or Tasks/Enter Bills for Peachtree users or Write Checks or Enter Bills for QuickBook users you will follow the same procedure:
- While entering the bill due from the vendor, or posting the direct disbursement check to pay the bill, calculate the 6% tax due on the purchase. Write down the amount on the vendor invoice (bill).
- On a blank line, enter Account ID #XXX (where XXX stands for a new or existing expense account called Taxes – Use). TAB to the amount field and enter the calculated tax as a positive number - you'll notice that the amount of the bill or payment has increased, don't worry we'll adjust that in step 3.
- Tab to a new blank line and enter Account ID #XXX (where XXX stands for a new or existing current liability account called Use tax payable). TAB to the amount field and enter the same amount from step 2, except enter it as a NEGATIVE amount. Your total amount of the bill or payment should adjust to the actual amount.
- Save your entry.
Use Tax liability should be remitted with your sales tax liability. Using the above instructions, you can run a general ledger report from either Peachtree or QuickBooks that will show the amount of your liability. Remember, when you pay your Use Tax liability to post the payment to Use Tax Payable.
need to file an extension for your taxes?
If you think you’ll need additional time to gather your tax information for us to prepare your return, please contact our office: If you are faxing or emailing your extension request, please be sure to include your name (and spouse’s name, if applicable) as it appears on your social security card(s), your current address and current locality. Also list any dependents, including the same information as above, which you will need to file an extension for. Please be advised, however, that filing an extension does NOT give you extra time to pay any tax due – it’s simply an extension to file your return. If you do not pay your tax due on time, interest and penalties will accrue.
If your 2006 tax return is filed electronically, the IRS has provided a website for you to track the estimated time it will take for you to receive your refund! It’s easy - just click here or go to www.irs.gov and click on the “Where’s My Refund?” link.
you can track your tax refund from home!
Would you like to be informed when our next newsletter is available?
Join ourmailing list
Weekly Tax Tips
September 6, 2010August 30, 2010
August 23, 2010
August 16, 2010
Monthly Tips
Business September 2010Financial September 2010
This year, from April 9th - 16th, Stortz & Associates celebrates Denim Week! It's coming down to the wire for Tax Day and we want to keep our team comfortable and happy as they're working hard to turn out those tax returns!
office hours
April 1 – 15, 2007
- Monday 9 AM – 6 PM
- Tuesday – Thursday 8 AM – 6 PM
- Friday 8 AM – 5 PM
- Saturday 9 AM - Noon
April 16, 2007 - 8 AM – 11 AM (Bethlehem office closes at 10:30 AM)
April 17, 2007 – CLOSED
April 18 – 30, 2007
- Monday 9 AM – 5 PM
- Tuesday – Friday 8 AM – 5 PM
Our office is closed each weekday from 12:00 – 1:00 for lunch.
important notice for employers & employees
PA Act 60 (effective December 26, 2006) made the following illegal:
- Publicly post or publicly display in any manner an individual’s social security number. (Publicly post or display means to intentionally communicate or otherwise make available to the general public)
- Print an individual’s social security number on any materials that are mailed to the individual unless Federal or State law requires it be printed.
What does this mean for you?
This means to take precautions on how and when you disclose an individual’s social security number. For instance, if you mail out payroll checks make sure the individual’s social security number is no longer printing on their paychecks. If you use computerized accounting software, such as Peachtree and QuickBooks, you should know that by default the payroll checks include the printing of the social security numbers. You can OMIT the printing of the social security number by editing the design of the check. Some local taxing agencies have now assigned an alternate taxpayer identification number so as to comply with the law. You may notice that tax forms such as quarterly tax forms will now have a different number identifying the individuals. Remember as an employer you are still liable to ensure the accuracy of the social security numbers reported to the taxing agencies.
Identity theft is unfortunately all around us. Get compliant and do what is necessary to deter identity theft. Call us if you have any questions.
federal employment tax returns
In February 2007, you may have received a letter from the IRS regarding a change in your filing status for federal employment tax returns. The IRS is switching from quarterly to annual filing for small employers whose annual liability is less than $1000. You will now be required to file Form 944 (Employer’s ANNUAL Federal Tax Return) for the year 2007, and each year thereafter, rather than form 941 (Employer’s QUARTERLY Federal Tax Return) until otherwise notified by the IRS. Payments for the federal tax will still be made when the liability is incurred, but the form will only be processed and sent at the end of the year (due January 31st). Payments can also be made electronically. If you have not enrolled in the electronic payment program (EFTPS), please contact our office for assistance.
You can be a part of our efforts in 2007 as we raise money to help find a CURE for CANCER! Support the American Cancer Society by purchasing a LEHIGH VALLEY DINING CARD! Receive a percentage or dollar discount at participating Lehigh Valley restaurants. Only $10 each – use as often as you’d like through May 2008 Here’s a sample of what you can save: Call us today for your discount card – 610-967-4711 DONATE ON-LINE Visit our Relay Team website and click on the Stortz Plus Team and make your tax-deductible donation!