Paying Comp Tax

1 Introduction | Select for Payment | Generate Invoice |

Washington school districts are required to calculate and pay tax for goods on which no sales tax has been charged by the vendor. Compensating Tax (Comp Tax), is the total of these taxes due to state and local authorities. The state Department of Revenue serves as the collection entity and distributes the funds collected to the appropriate levels of taxing authority.  Compensating tax includes at least the Washington state sales tax.

Use Pay Comp Tax to select and pay compensating tax transactions for which payment is owed to the Department of Revenue.

If a payment has been made to a vendor whose invoice has been paid and updated, contains compensating tax, the compensating tax associated with that invoice is due and available for payment.

Once you have identified compensating tax transactions to be paid, the system creates a Comp Tax A/P invoice designating the Department of Revenue as vendor. The invoice may then be updated and paid along with other invoices.

Generate the Compensating Tax Invoice

When qualifying Compensating Tax transactions have been selected, you generate a Compensating Tax Invoice that creates an invoice to the Department of Revenue as the vendor.

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