To Add a Sales Tax Code:
1. In the navigation bar, go to Settings, and then click on Glossary.
2. In the glossary, there is a tab labeled Sales Tax Codes, click into this tab.
This will show you a list of all of your sales tax codes, to edit one already there, click on the sales tax code. To add a new one, click on the +Add button.
3. After pressing +Add, enter your sales tax information.
Tax Code: Will be the code to identify the sales tax of a specific city, state, county, etc. Check the code and edit if needed.
Name: Will be the name to identify the sales tax of a specific city, state, county, etc.
State Abbrev.: Will be the state in which this sales tax code is being created for.
4. Click the +Add button to the right of Tax Calculations and fill in the "Authority Name" and the sales tax percentages for each type. Make sure you check the taxable goods and services that your state allows. For example, the State of Maryland does not allow you to tax Design Fees or Time, so these need to be changed to 0%. When finished click on the Save button.
5. This will direct you back to the main sales tax code information screen where the information can be checked over once more. Next, the Sales Tax Withholding Account must be entered. Typically this will be the 21000 Sales Tax Collected Account. Right under the Sales Tax Withholding Account is the Taxable Defaults for this sales tax code. Since the State of Maryland doesn't allow Design Fees or Time to be taxed, these boxes need to be unchecked. This will then make the Component defaults come in as "Non-Taxable".
