Tracking Hawaii excise tax


B

BK

I need some help figuring out how to track this tax in quickbooks. We will
be subject to 2 different rates depending on who we are selling services to.

First some background - The excise tax is not treated the same as sales tax
(it is levied on the seller not the buyer). In Hawaii there are 2 ways to
handle it.

1) Don't show it on the invoice. In this case the seller absorbs the
cost. Most firms do not do this for obvious reasons.
2) Listing the excise tax as a seperate item on the invoice. If a
seller opts to use the second option, then the state requires the seller to
add the excise tax into their gross revenues. This requires grossing up the
rate (i.e. 4% rate becomes 4.166%).

I cannot figure out how to track the sales for reporting purposes and also
what item type to use for the excise tax for invoicing purposes. If I treat
it as just another service item then I can't properly track the true sales
volume for each rate. If I set it up as a sales tax item then it doesn't
get added into the gross revenues.

Any help would be greatly appreciated.

Brian
 
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