QB Issue Resolution:

Currently, the International versions of the program don’t have a built-in payroll. However, you can create a journal entry to manually record your payroll transactions.

When you add salaries into QB, you can select Exempt (0% Sales) or Exempt (0% Sales) in the VAT column. See the screenshot below for your visual reference. However, I suggest consulting your accountant to ensure you use the appropriate code.

Once done, you can create a cheque to pay the liability account used in the journal entry. This way, you can either zero out the liability or lower it to the current amount.

If you’re using a third-party payroll service connected with the software, I recommend contacting directly to their Customer Support Team. From there, they can help you record the salaries with the appropriate VAT codes.

For more information about this process, see this article: https://community.intuit.com/articles/1777193.

In case you want to get product-related answers regarding to your QBO account, you can freely browse these useful topics: https://community.intuit.com/quickbooks-online-za.

Resolution for Issue 'What is the tax catagory for salaries' available: Yes (Solved).
Source: Intuit Community forum.

What is the tax catagory for salaries: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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