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Community > Payroll Feature Requests >

NZ Payroll: Payroll to pay Creditor invoices that have witholding tax

Started by Sharon Turner in Payroll Feature Requests | Idea

Ability to use Payroll to pay a Supplier/Creditor Bill (contractor with Witholding tax) - accrual not cash basis
eg May invoice $100 + $15 GST ($115). June pay the creditor invoice less witholding tax using Payroll. ie expense and gst refund accounted for in May, not June when process the payment, witholding tax is sent to the IRD.....

My work around :
1. Enter supplier invoice
2. Payroll - Pay items :
Earnings - Witholding Income "Creditor Invoice - ex GST, Expense account = Payment Suspense
Reimbursement -"Creditor Invoice - GST Amount ", Expense account = Payment Suspense
Payment Suspense account = No GST, Allow Payments
3. Bank Rec - reconciles to standard contra for payroll
4, Pay supplier bill using the Expense Suspense account
Thanks for sharing here, Sharon. We've passed this through to the team and while this isn't in the plans for the next 12 months, we'll keep you updated if there's any movement 😀

Cassidy Hall (Community Manager)