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Admin Tools: Sales Tax

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The Sales Tax option found in the System category of Admin Tools is used to set up a state's sales tax for services provided by a staffing company. Currently, only a few states require sales tax on services rendered. These states include Connecticut, Pennsylvania, Ohio, and Washington. If employees are placed at work site addresses in any of these states, sales tax should be configured for each state as described below. 

 

For each of the setup sections below, navigate to Start Page > Actions Menu > Admin Tools > Category = System > Sales Tax to display the System | Config Sales Tax window.

 

Note: The first tab, Sales Tax, must be configured before the other tabs' information will go into effect.

 

 

State sales tax configurations may already be defined on the default Sales Tax tab. Review the setup for each state and adjust as necessary. 

 

 

Sales Tax Tab

Note: The first tab, Sales Tax, must be configured before the other tabs' information will go into effect.

 

  1. Click Add New in the Sales Tax tab. The Config Sales Tax and Sales Tax Rate group boxes are cleared to show blanks and default values.



  2. Complete the Config Sales Tax fields according to these definitions.

    Field Description
    Name A name that describes the tax rate. This name will appear when a tax rate is assigned to a customer's work site address in the Customer section. 
    Description Additional information to describe the new sales tax configuration.
    State The state to which this configuration will apply. 
    CalcMethod

    Select one of the following calculation methods:

    • dbo.bil_ProcessSalesTax_Default - use for a straight percentage sales tax (total sales x tax rate). This method is currently used by the states of Connecticut and Washington.

    • dbo.bil_ProcessSalesTax_PA - use if sales tax is calculated on gross profit (gross profit x tax rate). This method currently just applies to the state of Pennsylvania.

    • dbo.bil_ProcessSalesTax_SkillCode - use if the state requires sales tax to be applied to only particular skill codes. If you choose this method, you must complete the setup described in Indicating skill codes that require sales tax.

    • dbo.bil_ProcessSalesTax_State - use if sales tax is calculated on a state rate as well as county-specific rates (total sales x state rate + total sales x county rate). This method currently applies only for the state of Ohio.
    Sales Tax Rate

    The state's sales tax rate is entered into the Rate (%) column.

    Note: If the configuration is being set up for a state that uses an individual state rate, the rate must be set up on the Sales Tax State Rate tab. Any rate entered here will be ignored.
    Start Date

    The date on which the tax rate will apply. By default, the Start Date is the first day of the current year. In 2018, the Start Date will default to 1/1/2018.

    End Date

    The date on which the tax rate will no longer apply. By default, the End Date is set to the last day of the year twenty years into the future. In 2018, the End Date will default to 12/31/2037. 



  3. Click Save. Repeat these steps to complete sales tax setup for additional states. 

 

 

Tax-Exempt Customers

A 0% tax can be created and applied to tax-exempt customers. 

 

  1. Click Add New in the Sales Tax tab. The Config Sales Tax and Sales Tax Rate group boxes are cleared to show blanks and default values.

    zero_percent.png


  2. Complete the Config Sales Tax fields according to these definitions.

    Field Description
    Name A name that describes the tax rate. Include the word "EXEMPT" to identify the rate as tax-exempt. This name will appear when a tax rate is assigned to a customer's work site address in the Customer section. 
    Description Additional information to describe the new sales tax configuration.
    State The state to which this configuration will apply. 
    CalcMethod

    Select one of the following calculation methods:

    • dbo.bil_ProcessSalesTax_Default - use for a straight percentage sales tax (total sales x tax rate). This method is currently used by the states of Connecticut and Washington.

    • dbo.bil_ProcessSalesTax_PA - use if sales tax is calculated on gross profit (gross profit x tax rate). This method currently just applies to the state of Pennsylvania.

    • dbo.bil_ProcessSalesTax_SkillCode - use if the state requires sales tax to be applied to only particular skill codes. If you choose this method, you must complete the setup described in Indicating skill codes that require sales tax.

    • dbo.bil_ProcessSalesTax_State - use if sales tax is calculated on a state rate as well as county-specific rates (total sales x state rate + total sales x county rate). This method currently applies only for the state of Ohio.
    Sales Tax Rate

    Enter a "0" into the Rate (%) column.

    Note: If the configuration is being set up for a state that uses an individual state rate, the rate must be set up on the Sales Tax State Rate tab. Any rate entered here will be ignored.
    Start Date

    The date on which the tax rate will apply. By default, the Start Date is the first day of the current year. In 2018, the Start Date will default to 1/1/2018.

    End Date

    The date on which the tax rate will no longer apply. By default, the End Date is set to the last day of the year twenty years into the future. In 2018, the End Date will default to 12/31/2037. 



  3. Click Save. Repeat these steps to complete sales tax setup for additional states. 

 

 

 

Sales Tax Transaction Types Tab

The Sales Tax Transaction Type tab is used to identify transaction types that are subject to state sales taxes as well as which are "pass-through" (deductible) types. This setup must be done for all sales tax configurations.

 

  1. Click the Sales Tax Transaction Type tab.



  2. Select a state sales tax configuration from the list of existing configurations.

  3. Select a transaction type from the Sales Tax Transaction Type group box.

  4. In the Is Deduction column, check the corresponding checkbox if the type is a deduction.

  5. In the Select column, check the corresponding check box if the type is to be included in the sales tax calculation.

  6. Click Save when finished. Repeat the steps for additional transaction types. 

 

 

Sales Tax Skill Code Tab

In some states, particular skills may be subject to sales tax. If the state requires taxes for partickular skills, complete this tab. The state must be set up with a processing method of dbo.bil_ProcessSalesTax_SkillCode.

  1. Click the Sales Tax Skill Code tab.



  2. Select the sales tax in the list to work with.

  3. In the Sales Tax Skill Code area, place a check mark in any Select column check box that corresponds with taxable skills.

  4. Click Save when finished.
 
 
 

Sales Tax State Rate Tab

For states that have a state sales tax rate, the Sales Tax Rate tab.

 

 

  1. Click the Sales Tax State Rate tab.



  2. In the Config Sales Tax Rate State group box, modify the rate as needed.

  3. In the Sales Tax Rate State County group box, review and update the county rates as necessary.

  4. Click Save.

 

 


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