General Excise Tax in Hawaii

I too can't find the default sales tax to change it from Sales Tax Payable to an income account. Has anyone responded to you yet?

To alioop2000,

No - I never got a response.  So, I continue to make manual adjustments.  But it seems that there should be a better way to do this.

An idea (I don't know if it will make your job easier or not, so try it before you do it regularly):

Make up the General Excise Tax as a sales tax item (4%). Create a General Excise Tax Collected service item that is taxable for sales tax and hits an income account (you can call it General Excise Tax Collected). Create a General Excise Tax Offset service item that is not taxable for sales tax and hits a (contra) income account (General Excise Tax Offset). When you create the invoice/sales receipt, add both of these items. You will need to calculate the 4 % excise tax collected (the $ 4.00 in your example), but QB will calculate the $ 4.16 and save it as sales tax payable. So at the time of paying the General Excise Tax, QB will give you the correct amount.

Let me know, if this solution is of any help or not.

Reka

Try this for reporting Excise Tax -- The Hawaiian excise tax is technically a tax on the business not on the customer. If it is separately stated for the customer, it is still an income to the business.

It is common practice in Hawaii to visibly pass on the excise tax to the customer.

Set up an Item for SUBTOTAL. Use the SUBTOTAL on your invoices.
Set an item for EXCISE TAX, rate 4%, and have the account be an INCOME account for EXCISE TAX.

Best wishes, AccountAbility Solutions - Connecting Your Books with QuickBooks