Withholding Tax Codes
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      2. Setup Files
      3. Withholding Tax Codes

      How to create Withholding Tax Codes

      Accountability simplifies tax withholdings by centralizing information and supporting multi-entity organizations. Users can apply withholdings during transactions or payments with ease and generate tax reports conveniently.

      Steps:

      1. Navigate to SET UP FILES > Withholding Tax Codes. 
      2. Click NEW WITHHOLDING TAX CODE. 
      3. Enter the following information.


      Field Description
      Code Enter 1-8 characters to define a code for the withholding tax. This field is required.
      Description Enter a description for the withholding tax code. This field is required.
      Office Select an office from the drop-down to limit the use of this withholding tax code to only the office specified. No other offices will be able to use this withholding tax code.
      Restrict to Country Select a country from the drop-down to limit the use of this withholding tax code to only the country specified. All offices in this country are able to use this withholding tax code. 
      WHT % Specify a percentage for the system to calculate the withholding tax amount when this withholding tax code is used. For example, entering 5 here will indicate a 5% withholding tax.
      Output WHT GL Account Enter a GL account to have the system post for output withholding taxes. This field is required. 
      Input WHT GL Account Enter a GL account to have the system post for input withholding taxes. This field is required. 
      Use for Input (checkbox) Check this box if this withholding tax code is used for input tax (purchases).
      Use for Output (checkbox) Check this box if this withholding tax code is used for output tax (sales).
      Active (checkbox) Check this box if this withholding tax code is active. Uncheck the box if the withholding tax code is no longer to be used.
      Calculate WHT On Tax (checkbox) Check this box if the WHT calculation is based on invoice amount plus tax.
      Round Down (checkbox) Check this box if the withholding tax is to be rounded down.
      Threshold Method* Optional - If applicable, select from the drop-down the type of threshold method to be used. To learn more about the Threshold Method click here. 

      4.     Click SAVE or SAVE & CLOSE.