Edit Tax Code Calculation: Multi-Rate Tax
Tax Codes | Tax FAQs | Tax Overview
This information is applicable to the Add/Edit Tax Code Wizard, accessed from the Sales Tax page of company preferences when setting up a multi-rate tax code.
Use the third page of the wizard to specify information for up to three components of the multi-rate tax code.
Enter a name for the first rate component of the tax code. Use a name indicative of the tax or provided by the taxing agency.
Enter the tax rate that applies to this component.
Enter tax rates greater than 1% as the percentage value. Example: To enter a tax rate of 7.50%, type 7.50
Enter tax rates less than 1% in their decimal equivalent. Example: To enter a tax rate of 0.5%, type 0.005
Enter the agency to which the taxes are paid. This name is displayed on sales tax reports and used when sending sales tax information to your QuickBooks financial software.
If this rate applies only when the unit price meets certain threshold amounts, select the check box and enter the applicable price range. You can enter lower, upper, or both price thresholds. Leave one end of the range open (blank) if it doesn't apply or is unlimited.
Examples:
Rate applies at all unit prices: Don't select the check box
Rate applies only if unit price exceeds $100: Enter 100.01 to <blank>
Rate applies only if unit price less than $100: Enter <blank> to 99.99
Rate applies only between $100 and $300: Enter 100.00 to 300.00
If the rate applies only to that portion of the item price that falls within the specified range (as opposed to the entire item price), check the second check box as well.
Select Add Another Tax Rate and repeat for each rate component of the tax code.
When all components have been defined, select Test at the bottom of the window to enter sample prices and verify the tax rates are applied correctly.
Select Finish when done, or Back to return to the previous page.
QuickBooks Tax Information Use the QuickBooks Tax Info fields to map (link) this Point of Sale tax code to tax items/groups and a tax code previously set up in your QuickBooks financial software. This allows you to have your Point of Sales taxes reported in QuickBooks in the manner you choose.
Each tax code component can be mapped to a separate QuickBooks tax item.
The tax code can be mapped to a QuickBooks tax code.
If you do not make selections here, Point of Sale will automatically map each component to a QuickBooks tax item and the tax code to a QuickBooks tax code of the same name, creating them if they dont exist. Learn more.
When done configuring your taxes, be sure to assign tax codes to applicable items in inventory.