Expenses and pre-taxed salaries: proper way to enter them?

Andrea Borgia bab0069@iperbole.bologna.it
Sun, 17 Sep 2000 16:59:35 +0200

On Wed, 13 Sep 2000 14:20:48 -0700, you wrote:

>Taxable income is not the same as not taxed income. Income that you
>have already have paid taxes on in the form of withholding is still
>taxable income and must be reported.

Ok, fixed.

[Note: the ultimate goal of the following mess is to be able to
calculate taxes by looking only at last year's records. This is
already impossible because I'd have to use acc.payable/receivable to
record last December paycheck in the proper year (got it in January
2000), so maybe I should just drop the matter and let you code, but a
multiway split could be a nice thing to have anyway for other reasons]

Now I have another problem: I wanted the "Paycheck" account to only
show taxable income, skipping reimbursements.

Right now, I can enter a split for the gross amount in Paycheck, with
parts going to pre-taxes, reimbursements and bank. My problem is that
reimbursement for documentable expenses should not appear as taxable,
so I'd need (or think I'd need) a multi-way split:

reimbursement+				reimbursement
realpaycheck		going to	net pay

in such a way that the bank account still shows an inbound check for
reimbursement+realpaycheck while at the same time reimbursement does
not show up in Income. Sort of subsplitting one of the splits in one
of the registers (i.e., Income) without affecting the linked accounts
(i.e., bank and taxes)... I know it is tricky so I won't even ask...
is there any reasonable way to circumvent this problem? For the
moment, I'm simply adding a comment in the entry to the effect that it
should not be counted for tax-purposes, but this is crude.

On taxes and withholding: when I'll really pay taxes, the amount
withheld can be scaled from the tax bill and you pay only the
difference. Does it make sense to use accounts payable/receivable to
record this fact?

Ideally, I'd like to able to track the amount of outstanding
withholdings I have (so that I know if I have to shell out new money
for this year's tax bill or not) and still get all withholdings ever
made counted as expenses (I'll never get the money back in any way
other than as a discount on a tax bill).

TIA to everyone who'll offer any insight,

Alias:  borgia@students.cs.unibo.it
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