One of my favorite things about QuickBooks Online is the ability to attach documents to transactions, customers & vendors. It’s a great way to keep track of receipts, engagement letters, and W9s. However, there’s a limitation to this: users are not able to attach documents to sales tax transactions or payroll tax payments, made outside of QuickBooks Online Payroll epayments and efilings (ie: Michigan Unemployment payments have to made directly online via the MiWAM site.)
I have a simple work around that allows me to attach efile and epay confirmations, and at the the same time, make it easy to find these transactions via a QBO search.
I use Zero Dollar Transactions to upload Sales/Payroll Tax confirmations in QuickBooks Online.
First, let’s look at a Sales Tax payments. Here we are, processing the Sales Tax payment, after clicking on “Sales Tax” from the left nav:
This is where we can enter the confirmation number from our online payment – note, no place to attach a PDF confirmation from the state’s website:
To do that, we need to open the Sales Tax Liability register, from the Chart of Accounts:
From the register, I want to add a new Journal Entry:
Here’s how to enter the JE:
The date for this JE should be the same as the date you posted the Sales Tax payment in the QBO Sales Tax Center.
Now, you can easily search for these transactions, using the Vendor Name:
This process works exactly the same for payroll liabilities, we just use a Vendor Name specific to the type, such as “Michigan WH Confirmations” or “Michigan UIA Confirmations”.
Another way we use the zero dollar transaction is to attached statements to registers.
You can see an example of that below. We reconcile this transaction when we reconcile the account.
And again, assigning a Vendor Name helps us find statements later:
Hope these little tricks are helpful to you!