Setup Sales Tax Rates

Navigation: From the Main Menu select Setup Entry and then press the Sales Tax Rates button.

In this window you will set up your various Sales Tax Rates. You should set up a tax rate for local sales, a zero tax rate for resale or wholesale customers, and any other tax rates. you may use.

*Note: If you have multiple locations that will have different local sales tax rates you will want to set up a different rate for each store. For example if you have a location in City A and one in City B you will setup two sales tax rates named CityA & CityB, then set the tax rate for each location to the rate(s) you just created.

Creating a New Sales Tax Rate

• Press the New button
• Tax Code: Enter a name for the tax code up to 15 characters long. Using a name like “Local” is a good example. Do not include the tax rate in the name. Local 7% would be a poor code to use, because the code cannot be changed if the tax rate increases without deleting and adding a new tax rate.
• Local Tax Description: A longer description of the tax rate, such as Local 7% Tax.
• Part Rate %: Enter the tax rate for parts.
• Labor Rate %: Enter the tax rate for labor.
• Retread Rate %: Sometimes there is a special tax rate for retread tires. If applicable to your business, enter it here. Otherwise, use the tax rate for Parts here.
• Cutoff Amount: The entire amount over the Cut-off amount gets taxed at the cut- off rate%. For example, if the Cut-off amount is $5,000 and the cut-off rate is 6%, and the invoice total was $5,200 then the first $5,000 would be taxed the normal rate, while the other remaining $200 would be taxed 6%.
• Cutoff Rate %: The rate taxed on the invoice’s taxable amount that exceeds the Cut-off rate.
• Press the Save Changes button.

!Caution: Deleting a tax rate can be problematic if it is already associated to several of your customers. It is much better to change the description of the rate, because the Tax Code is not visible at Point of Sale, or in the reports.