How To: Adding a New Tax ID (30-02-04)

Overview

This tutorial describes how to set up a new Tax ID.

Step-by-Step

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  1. Click the ‘Add New Tax ID’ button.

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  1. In the ‘Sales Tax Table ID’ field, enter a new or existing Table ID.
    NOTE: A separate Sales Tax Table ID must be set up for each Tax Code in your company.

    Please view the Sales Tax Table Introduction for more information on setting up the Sales Tax Table ID.

  1. In the ‘Sales Tax Code’ field, enter the Sales Tax Code for this table. Remember that only one Tax Code can be assigned to a single Sales Tax Table ID.

  1. Complete the necessary tax table fields, which are described below:

    2. Level 1
    Enter a description for the Level 1 tax (e.g. State, County, City, etc.). (optional).

    Tax Percent
    Enter the tax rate percentage per dollar for Level 1 (5% is entered as “5.0”, 4 1/4% is entered as “4.25”, 4 1/2% is entered as “4.5”).

    The maximum Level 1 Tax Percent is 99.999.

    NOTE: Canadian installations will always use Level 1 or GST.

    Detail Sales Tax
    (Y/N)

    Enter “Y” to enter breakpoints for parts of taxable dollars. Tax will be calculated based on the breakpoints entered in the table. Please see the “Setting Up Breakpoints” section for more information.

    Enter “N” to calculate tax according to percent entered in the ‘Tax Percent’ field.

    TradeIn Taxable
    (Y/N)

    Enter “Y” if TradeIn items are taxable for Level 1.

    Enter “N” and the total sale is reduced by the trade in dollar amount prior to sales tax calculation for Level 1.

    Level 2
    Enter a description for the Level 2 tax (e.g. State, County, City, etc.). (optional).

    Tax Percent
    Enter the tax rate percentage per dollar for Level 2, if any.

    Tax Limit $
    Enter the Level 2 taxable dollar limit, if any. Use the ‘Tax By Line/Tot’ field to specify whether this limit is by line item or for the total sale.

    Tax By Line/Tot
    (L/T)

    Enter “L” to apply the Level 2 tax limit on a line item level. For example, if this option is selected and “5000” was entered in the ‘Tax Limit $’ field, the first $5000 of every line item is taxable at the Level 2 rate.

    Enter “T” to apply the Level 2 tax limit to the total sale. For example, if “5000” was entered in the ‘Tax Limit $’ field, the first $5000 of the total sale is taxable at the Level 2 rate.

    NOTE: For Tennessee, enter “L” in this field.

    NOTE: If there is no entry in the ‘Tax Limit $’ field, this field is not accessible.

    TradeIn Taxable
    (Y/N)

    Enter “Y” if Trade In items are taxable for Level 2.

    Enter “N” and the total sale is reduced by the trade in dollar amount prior to sales tax calculation for Level 2.

    Apply to Merch + Level 1 Tax
    (Y/N)

    Enter “Y” if the tax calculated in Level 1 is to be added to the merchandise prior to calculating Level 2 tax.

    Enter “N” to calculate Level 2 Tax on merchandise only.

    NOTE: For Tennessee, this field should be entered as “N.”

    Level 3
    Enter a description for this tax level (e.g. State, County, City, etc.) (optional).

    Tax Percent
    Enter the tax rate percentage per dollar for Level 3, if any.

    Tax Start $
    Enter the starting tax amount for items. An item’s price must be larger than this amount in order for it to be charged Level 3 sales tax.

    If the field is left blank, the starting tax amount defaults to $0.00.

    Tax Limit $
    Enter the Level 3 taxable dollar limit, if any. Use the ‘Tax By Line/Total’ field to specify whether this limit is by item or for the total sale.

    Tax By Line/Tot
    Enter “L” to apply the Level 3 Tax Limit at a line item level. For example, if the ‘Tax Start $’ amount is $1601 and the ‘Tax Limit $’ is $3200, the tax will only be calculated for Level 3 if the total price of the item is greater than $1601, and it will only be calculated up to the line item limit of $3200.

    Enter “T” to apply the Level 3 Tax Limit on a total sales level. For example, if the ‘Tax Start $’ amount is $1601 and the ‘Tax Limit $’ is $3200, the tax will only be calculated for Level 3 if the total sale amount is greater than $1601, and it will only be calculated up to the total sale amount limit of $3200.

    NOTE: For Tennessee, enter “L” in this field.

    NOTE: If there is no entry in the ‘Tax Limit $’ field, this field is not accessible.

    TradeIn Taxable
    (Y/N)

    Enter “Y” if Trade In items are taxable for Level 3.

    Enter “N” and the total sale is reduced by the trade in dollar amount prior to sales tax calculation for Level 3.

    Apply to Merch + Level 1 Tax
    (Y/N)

    Enter “Y” if the tax calculated in Level 1 is to be added to the merchandise total prior to calculating Level 3 tax.

    Enter “N” to calculate Level 3 tax on merchandise only.

    NOTE: For Tennessee, enter “N” in this field.

  1. Click the ‘Update’ button to save the Tax ID.
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