Changing sales tax rates can change the whole calculation of your business finances. With every changing government, you get to receive changing tax rates. If you are doing accounting all by yourself then you would already know all the hardships that one needs to go through. If you are using software like Quickbooks and want to know how to add sales tax in QuickBooks then continue reading…
Though it is a rare scenario, still if it happens then here is what you would need to go through the following steps:
Adding Sales tax rate:
- Login to your Quickbooks company file,
- Now choose the Sales Tax option from the menu. You can find this from the Dashboard left side menu.
- Here the new window will appear. Click on the Edit tax rate option. If you don’t see the option already then check out the Related Task filed on the extreme right-hand side of your screen.
- Click on the Edit tab once you have selected the Related Tasks option.
- On the new window, click on the Edit Sales Tax button and in the field provided enter the New Sales Tax Rate.
- Once you are satisfied with your settings then hit Save.
Once the settings have been saved, the new window will show you all the tax rates and names of the agencies. This will also include your changed rate which will be highlighted in a different color.
Adding Local Payroll taxes:
- By having Quickbooks logged in, locate the Employees tab.
- From the drop down option, select the Employee’s Center option.
- To change the payroll taxes for a particular employee, choose the name of the employee from the employee’s tab.
- Click on the Edit button and then click on “Update Payroll Info.”
- Choose Taxes and then hit Other’s tab.
- From the tax, details provided the agency whose taxes you want to change.
- Provide the new tax rate and choose “Save and finish”. Your new tax rates will now be applicable.
How you will use them:
- You can use the new tax rate only for the new items. It won’t get populated in your previous entries.
- If you want to edit your previous transaction with new rates then you will have to choose the entries all one by one to make an addition.
- Once you have made your changes then your Old tax rate remains inapplicable.
- When viewing your sales report, you will get to see items with both the rates if the date range is selected as such.
If you are working in a scenario wherein you want to create a new entry with old dates then new tax rates will be applied by default.
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