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
button.
3. After pressing
, 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.
Follow Along in this example for creating a sales tax code for the state of Virginia:
1. Fill in the Tax Code, Name, & State Abbreviation for this new Sales Tax Code
2. Click the
to fill in the "Authority Name" and the sales tax percentages for each sales category.
3. Make sure you check the taxable goods and services that your state allows. For example, the State of Virginia 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.
4. This will direct you back to the sales tax code information screen where the information can be checked over once more.
5. Next, the Sales Tax Withholding Account must be entered. Typically this will be the 21000 Sales Tax Collected Account.