Goldenseal Accounting Software Topics-- Vendor Withholding Types

Vendor Withholding Types

How do I use the different types of vendor withholding?

Starting with Goldenseal accounting software version 2.4, you can use several different types of vendor withholding, based on the Calculation Method field:

Retainage

Use a Retainage withholding if you will deduct an amount from a vendor, and then pay it later to that vendor.

Pay To Agency

Use a Pay To Agency withholding for an amount that you pay to a tax agency in addition to what you pay the vendor. Use it for the following cases:

Sales tax on purchases from a different state
Excise taxes or other taxes that you pay as a percentage of vendor payments

HINT-- use Vendor Sales Tax for taxes that you pay directly to a vendor.

Deduct and Pay

Use a Deduct and Pay withholding for an amount that you subtract from a vendor, and then pay to a tax agency. Use it for any of the following:

Backup withholding deductions
Sales or VAT taxes that you must deduct from a vendor and then pay to a tax agency

Credit To Agency

Use a Credit to Agency withholding for GST, HST, PST, and VAT taxes when you receive a credit for tax payments that you make to a vendor.

HINT-- you'll also use a Vendor Sales Tax to cover the tax that you pay to the vendor.

Withholding Tax Payments

Goldenseal will keep track of the vendor withholding amount you owe to the tax agency. To pay the tax, choose Pay Bills from the Bank menu, and then enter Vendor Withholding into the field at upper right.

If you used a Credit To Agency withholding, Goldenseal will give you a credit from that agency. You can deduct it from other amounts that you owe, or you can enter it as a deposit when you receive the credit amount.

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