How to enter income tax paid

BenB

I'm an employee. I've always entered my salary as income, paid to my bank account. I've never worried about tax paid directly to the ATO, however this understates my income.

 

How should I enter the tax paid to the ATO by my employer on my behalf? Is it an equity account?

DuncanS

@BenB 

 

I would include the Gross and Tax in each transaction by a Bank Rule or recurring transaction.

 

Would use a Equity Account called Income Tax Paid.

This Account could be transferred yearly to Drawings on receipt of the Assessment. 

 

Duncan