Tax Locations Explained

Tax Locations are how you determine how much tax you are collecting from your clients. It is important to note that this guide will instruct you on how to set up Tax Locations in your system but it cannot provide the tax rate for any of these. This presents a liability risk. For exact tax rates, please consult your bookkeeper. 

 

To find and set your Tax Locations in Studio Designer, go to Settings and then click on Tax Locations.

 

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If you plan on charging customers and collecting taxes, you will need to enter a new Tax Location. To enter a new Tax Location press “+New Tax Location”. 

 

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Below is a listing of each of the groups of properties and their exact function in relation to setting up your taxes:

 

Tax Location – The friendly name of the tax location. This should be short and descriptive enough for you to know exactly what tax location you are setting (e.g. LA County)

Description – The long-form description of your tax location. This does not need to be short but should be more descriptive than the Tax Location property (e.g. Los Angeles County 9% Tax Rate)

Tax Rule – This property dictates how Studio Designer interacts with the Tax Percent properties below.  Please select the one that applies to your situation as recommended by your bookkeeper.

Tax Percent 1, 2, 3 – How Studio Designer interacts with these is set by the Tax Rule set above. These properties determine at what rate (in percentages) you are charging in tax for your items.

Sales Tax Account – The account set here is where your primary Sales Tax goes when it is collected for record keeping purposes.

Sales Tax Account 2 – The account set here is where your Sales Tax 2 is located once it is collected.

Prepaid Tax Account – The account set here is where your prepaid tax goes for record keeping purposes.

Prepaid Tax Account 2 – The account set here determines where your secondary prepaid tax goes once it is entered into the system.

HST Tax Paid Account – This is where your HST (Harmonized Sales Tax) goes once it is entered into the system.

Selling Taxable – This determines if all goods sold under this tax location are set to taxable by default.

Mark Up Taxable – This determines if all mark up an all goods under this tax location are set to taxable by default. 

Time Taxable –  This determines if all Time Billing Entries entered for clients under this tax location are set to taxable by default.

Local Tax Percent 1, 2, 3, 4 – If your local tax charges an additional percentage on top of your state tax, this is where you enter that percentage.

 

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