Withholding Tax

Paul Ogilvie paul__ogilvie at hotmail.com
Thu Dec 7 03:24:33 EST 2006


Hi,
I am a new potential user of gnucash.
I have a question tho.
At the moment I work on contract under the withholding tax system.
This means that I invoice my employer and he deducts 20% tax and sends it to 
the ird.  If too much gets paid then I get it back with my return at the end 
of the year.
At the moment I can get gnucash to work out my tax on the invoice.  The 
problem I have is that I need it not to add it to my income.

An example:

If I worked 8hrs at $16 and my withholding tax was 20%,

Then
Income Before tax would be: 16*8 = $128
Withholding Tax would be: 20% of 128 =$25.6
And Imcome After tax would be 128-25.6 = $102.4

What I get in Gnucash is it adding my tax to my income thus it thinks I 
earned 128+25.6 = $153.6 which is wrong.

Any advice would be greatfully accepted

Regards
Paul

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