Edit Tax Code Calculation: Price-Dependent Tax
Tax FAQs | Tax Reports | Tax Overview
This information is applicable to the Add/Edit Tax Code Wizard, accessed from the Sales Tax page of company preferences to set up a price-dependent tax code.
Use the third page of the wizard to specify:
Tax Rate Enter the tax rate that applies to sales of items assigned this tax code. Enter a value between 0.01 and 99.99. You do not need to enter a percentage sign.
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
Tax Agency Enter the name of the taxing agency to which you pay sales taxes. This name is displayed on sales tax reports and used when sending sales tax information to your QuickBooks financial software. What if I am required to collect and pay taxes to multiple agencies?
Price Threshold Enter the unit price threshold that triggers collection of sales tax. If tax is collected only on that portion of the unit price in excess of the threshold, also select the Apply Sales Tax Only ... check box.
Example: Clothing in your area is taxed only when the unit price exceeds $100, and then the full amount is taxable at 7.50%. You would enter $100.00 as the threshold amount. Since the full amount is taxable, do not select the check box.
If you did select the check box, only the amount over the threshold would be taxed, e.g. a $150 clothing item would be taxed at $50 x 7.50% = $ 3.75.
QuickBooks Tax Information Use these fields to map (link) this Point of Sale tax code to a tax item/group and tax code previously set up in your QuickBooks financial software. This allows you to have your Point of Sales taxes be reported in QuickBooks in the manner you choose. If you do not make selections here, Point of Sale will automatically map this code to a tax item/group/code of the same name in QuickBooks, creating them if they dont exist. Learn more.
Select Finish when done, or Back to return to the previous page.
When done configuring your taxes, be sure to assign tax codes to applicable items in inventory.