Tax Agency contains the city and county jurisdictions that you pay then QuickBooks Online provides the calculated amount that you owe to each agency and the due date Add a combined rate with multiple agencies If you're required to track sales tax for more than one tax agency, consider setting up a combined tax rate. For example, you might need to report and pay out sales tax to your city, to your county, and to your state.

With a combined tax rate, your customer sees only one tax rate on their sales form, but the Sales Tax Center keeps track and splits out the appropriate amounts for each agency. You can add up to 5 components in a combined tax rate. To add a combined tax rate:.

Select Taxes on the left menu. Prometeus 0.9.3 for mac. Under the Related Tasks list on the right, choose Add/edit tax rates and agencies. Select New then choose Combined tax rate. Enter a name for the combined rate and the different sales tax requirements. Choose additional components, if needed.

Select Save. The new rate appears in the Sales Tax Rate and Agencies list. You can also now select the new combined rate in forms like invoices. You can view the amounts owed to each agency in the Sales Tax Owed list in the Sales Tax Center or you can view the Sales Tax Liability report. Edit a tax rate or tax name You can edit a sales tax rate if you need to make changes to it. You can only edit component rates.

To edit a combined rate, make changes to its component rates. QuickBooks Online returns to the Sales Tax Rates and Agencies table and highlights the component rate you changed. Results in editing a sales tax rate. The new rate is available for new transactions only. If you create a new transaction but use dates in the past, the transaction uses the new rate. Once you edit a rate, the earlier rate can no longer be used.

Existing transactions that used the earlier rate remain unchanged unless you edit the transaction and specifically select a different sales tax rate. For recurring templates that use the changed component, new transactions created with the template use the new rate. Existing transactions created with the template and the earlier rate remain unchanged. Reports show the data for both rates (before and after) if there are transactions for both the rates in a particular period.

To edit a tax agency's name. From the left menu, select Taxes. Under the agency name that you want to edit, choose Edit.

Enter the new name, then select Save. To edit sales tax settings. From the left menu, select Taxes. Under the Related Tasks list on the right, choose Edit sales tax settings. Select Yes, if you charge sales tax. Set the following options(Optional):. Set a default tax rate - The default rate is automatically selected in new sales forms.

You can choose a different rate if needed. If you choose a different rate for a particular customer, QuickBooks Online remembers the rate for that customer and overrides the default rate. Select Mark all new customers are taxable - This means new customers you add aren't tax-exempt. You can change this setting for individual customers in the Tax Info section of each customer record.

Select Mark all new products and services are taxable - This means items you add to a form have the Tax column already selected. You can clear individual items in a form if you don't need to charge sales tax. Choose No if you don't charge sales tax. If you already charged sales tax on earlier transactions, you won't be able to disable sales tax without first removing sales tax from those earlier transactions.

Select Save. To deactivate a tax rate. From the left menu, select Taxes. Under the Related Tasks list on the right, choose Add/edit tax rates and agencies.

Choose a tax rate name and select Deactivate. Select Continue.

Important!Be aware that if you use this method, you won't be able to pay sales tax through the Sales Tax Center since it uses a special liability account that you can't link to products and services. Create an Other Current Liability account.

Select the Gear icon at the top, then Chart of Accounts. In the Chart of Accounts, select the New button. From the Account Type drop-down, choose Other Current Liabilities. In the Name field, enter Sales Tax Payable – Manual Adjustment. Select Save and close.

Create a Sales Tax item. Select the Gear icon at the top, then Products and Services. In the Products and Services page, select New. Select Non-Inventory or Service for Item Type. Enter Sales Tax in the Name and Description fields.

Leave the Sales price/rate field blank. In the Income account field, choose the account you set up in Step 1. Make sure the Is taxable box is unchecked. Select Save and close.

How To Add Sales Tax Quickbooks

Add the item to your sales transactions. Create the invoice or sales receipt as usual. Add the sales tax item created in Step 2. Manually enter the amount for the Sales Tax line item. Select Save and close. To determine the amount of sales tax owed:.

Select the Gear icon at the top, then Chart of Accounts. Find the Other Current liability account an in the Action column, select View register. The balance listed in the is the amount of sales tax currently owed.

To pay the sales tax from this other current liability account:. Select the Plus icon (+) at the top, then Check. In the Payee field, select the vendor receiving the sales tax payments. In the Account field, select the Sales Tax liability account you created.

Enter the amount of your sales tax payment. Select Save and close. Using the Sales Tax Center along with manual payments makes sales tax tracking difficult and error-prone. We highly recommend that you stick with just one method. For example, if you're using a sales tax item to document your sales tax amounts for certain situations, you may want to do that for all your transactions to make paying your tax easier. If you are using, you have the option (though not recommended) to override sales tax amounts.