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[Tiffany Ziegler]

Help! I’m trying to enter an invoice to a vendor that I need to withhold federal taxes on because they have not provided a valid TIN. I’ve setup backup withholding at the Company level but cannot figure out how to properly enter the transaction into payables.

Say I have a $20,000 invoice with 24% backup withholding. This means I should only be paying the vendor $15,200, and withholding $4,800 to pay to the IRS. I thought GP would do all of this for me but how do I enter on the Transaction Entry screen? Do I simply enter a purchase amount of $15,200 and change the 1099 amount to $20,000? Will GP transfer the withheld amount to the vendor I setup at the company level or no?

This setup on this seems a bit awkward! Anyone have experience?

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Tiffany Ziegler
Vice President & Controller
Velcor Leasing Corporation
Madison WI
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[Jo deRuiter]

Hi

Have you followed the steps below to setup and use the Backup Withholding? 

?

https://support.microsoft.com/en-us/help/930487/how-to-set-up-backup-withholding-for-1099-reporting-for-miscellaneous

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Kindest Regards,

Jo deRuiter
“That GP Red Head”
Advanced Credentialed Professional-Dynamics GP
Member, GPUG GP Credentialing Exam Committee
Chairman, GPUG Partner Advisory Board
“……what isn’t she up to?”
Heartland Business Systems, LLC
Senior Financial Systems Consultant
Milwaukee, WI
770-906-4504 (Cell)
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[Tiffany Ziegler]

That’s exactly the link I used to setup. But it doesn’t really go into how to enter the actual transaction, which is where I’m stumped!?

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Tiffany Ziegler
Vice President & Controller
Velcor Leasing Corporation
Madison WI
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[Thaddeus Suter]

Tiffany, Don’t use the Company Setup Option for Withholding. That is really for a different purpose and will put a voucher onto the withholding vendor. It is global.

What you want to do is use the WITHHOLDING button on the Vendor card to set up the amounts specific to the Vendor ass well as the reason codes/types:
When the vendor is set up correct you will get prompted when entering the AP Transaction on whether the entry is subject to withholding:
It will show here but that is all: You can un-mark or change the %.
The distributions are not affected. Not yet at any rate.

Same if entered thru POP Invoice Match.

But be aware nothing happens even when you Post the transaction. Nothing happens until you pay the invoice.
When you Select/Edit the check the withholding will invoke at payment time.

All it will do is an accrual to the withholding account. It does not put a voucher on a withholding vendor because there is no setups for this unlike the globals.

Here is what happens at Edit Check:
See the withholding deducted and the accrual in the distributions:

Here is how it looks after payment. Both the voucher for $1000 and the Payment of $760 less Withholding goes to History in AP on the Vendor.
Just what you want.
You are left with the accrual in your GL of $240.
?

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Thaddeus Suter
Retus, Inc
HELOTES TX
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[Thaddeus Suter]

A Correction  for you.

The Withholding WILL create an UNPOSTED WORK voucher on the Global Withholding Vendor after payment.

We usually delete those and don’t post because we use several different vendors.
So we just treat it as an accrual but you do not have to.

See below:

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Thaddeus Suter
Retus, Inc
HELOTES TX
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[Amber Bell]

I don’t have the “Withholding” button on my Vendor Maintenance screen and have never seen that with a client. How do you turn that on??

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Amber Bell
Training Dynamo LLC
Email: amber@trainingdynamo.com
Website: http://www.trainingdynamo.com
Twitter: @trainingdynamo
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[Andrew Kennedy]

?Amber,
Adding the Withholding Vendor under the company setup options activates the withholding button in the vendor card.

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Andrew Kennedy
Principal Consultant
Velosio
Seven Hills OH
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[Tiffany Ziegler]

Thaddeus – thank you SO much. This is exactly the info I needed and I cut the check successfully yesterday. This group amazes me – I spent an hour googling this yesterday to no avail – how can there be no info on this in the google master?!

The button did not show up for me until I did the Company setup for Backup Withholding and saved. Then once I opened the vendor card, the Withholding button appeared. Regardless – the whole process is a bit un-userfriendly! Here is a link to the company setup instructions.

https://support.microsoft.com/en-us/help/930487/how-to-set-up-backup-withholding-for-1099-reporting-for-miscellaneous
??

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Tiffany Ziegler
Vice President & Controller
Velcor Leasing Corporation
Madison WI
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[Thaddeus Suter]

You are welcome. Every time I see you post I remember Bill Schultz in Mad City.
Say hello some time if you see him. Its been over 20 years since I played public accounting at GT.

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Thaddeus Suter
Retus, Inc
HELOTES TX
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[Tiffany Ziegler]

Thaddeus – what a small world! Bill is one of my favorite mentors from my days at GT – are you a GT Madison alum like myself? I don’t see him often (sadly) but will be sure to tell him hi the next time I do.

Thanks again for your helpful post!?

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Tiffany Ziegler
Vice President & Controller
Velcor Leasing Corporation
Madison WI
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[Jo deRuiter]

I’m so sorry I could not finish answering this yesterday but am thankful that Thaddeus could. 

Basically, the setup is easy but no magic happens until the invoice is paid, LOL

And “un-user-friendly” is an understatement – I like how they tell you how to set it up in that article, but nothing on how to USE it!!?

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Kindest Regards,

Jo deRuiter
“That GP Red Head”
Advanced Credentialed Professional-Dynamics GP
Member, GPUG GP Credentialing Exam Committee
Chairman, GPUG Partner Advisory Board
“……what isn’t she up to?”
Heartland Business Systems, LLC
Senior Financial Systems Consultant
Milwaukee, WI
770-906-4504 (Cell)
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