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Hey Leslie,
I just had a client who asked me how to handle the same thing. Since we don't work in Australia I had not ever seen or needed the Withholding options.
This method works well since it creates the document for withholding in a batch instead of posting so that you have the opportunity to change the description or document number before posting. This may be necessary if it's needed on the check stub.
The only drawback is the fact that you can only specify one vendor for this type of transaction. I guess it's good that it doesn't happen very often. At least none of my clients have mentioned a need.
Thanks for submitting your creative solution.
Q Factor,
This one is a little out there, but it works. If you aren't already using it, setup the Withholding vendor in the Company Setup window. Administration>Setup>Company>Company and then hit the Options button. Enter the vendor ID (IRS) as the withholding vendor and put the withholding percentage in the field below.
Now when you open your Vendor Card, you will see a 'Withholding' button. Select that button and then check the box on the next window saying the vendor is subject to withholding.
Now, whenever you make a transaction for that vendor, it will ask you if that transaction is subject to withholding. If you say 'yes' then you will see a 'subject to withholding' checkbox with the rate that defaulted from company setup.
Put in the whole invoice amount and post it. Now, when you mark off to pay him, it will withhold 30% and create a due to the withholding vendor. Now, here's the catch - you need to put a calculated field in your 1099 form that will add the amount in the withholding box to the amount they put in the regular box. That gets it done with much less pain.
Kind regards,
Leslie
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