How do i post a with holding tax transaction , when paying a service provider ?

I have a transaction that i need to post in my books of accounts .

a service provider payment , where i need to with hold 15% withholding tax.


First make sure you have a liability account set up to hold this withholding. You can use your payroll withholdings acvount since this goes to same agency.

Then when paying vendor record the full payment and second line is deduction of the 15%, net check is 85%, but vendor is paid in full.

Sounds like backup withholding or refusal to provide W9. Our state just started requiring our state income tax be withheld from 1099 vendors but only those from out of state

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