California withholding tax

  1. Create a new expense account on your chart of accounts called "CA withholding tax expense". Also create a new liability account called "CA withholding tax liability".
  2. Calculate how much tax needs to be withheld.
  3. Each month, enter a general journal entry with the following details:
    • Debit CA withholding tax expense: $100
    • Credit CA withholding tax liability: $100

    OR

  1. Each month, record a check with the two line items. The total of the check should be $0.

    Property Account Amount
    Property A CA withholding tax expense $100
    Property A CA withholding tax liability -$100

    If the amount to be withheld will be the same each month, use a recurring check instead.

  2. When the tax is due, pay the bill using the CA withholding tax liability account.

Things to think about:

  • Buildium does not currently offer a way to calculate the check based on a percentage. You'll need to manually calculate the amount.
  • If the amount is the same each month, consider using a recurring check.
  • You can use the guidance above for FIRPTA Withholdings.

 

Article #: 111175

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