My issue is sales tax. In Florida most counties have adiscretionary tax in addition to the state sales tax. On sales of %5,000.00 or less the rate is whatever the sales tax is for the county (includes the discretionary tax) and over$5,000.00 the tax is the state tax only. I have been entering the sales tax as an item on the customer invoice. I have beenpondering as to how to set this up as a sales tax group. So far I don't see a way of doing it. Has anyone else from Florida found a work around?
I too have this problem. Is Florida the only state subject to this Sales Tax System?
There are two sales taxes in Florida:
A state sales tax that is 6% on the total.
A county sales surtax that varies from county to county but is only assessed to the first $5,000.
You can add multiple items to a sales tax group, but you have no way of limiting any sales tax to only charge up to a certain limit.
Peachtree has had this feature for years. Any word on whether QuickBooks will ever add this feature.
I have a workaround that gives me accurate numbers, but it is very cumbersome for the clients (forces them to manully calculate the taxes on the invoices) and creates extra work when reconciling the sales tax return.
I have tried setting up a group for sales tax but it didn't work for me. If you try to figure out a per centage break down
it is not constant with each transaction. I just manually
enter it on the invoice.
I've figured out the workaround for this problem. I can email you a copy of our invoice if that will help. It isn't a pretty invoice, but it calculates everything correctly and the sales tax liability report is correct as well.Here's a summary of what we do:The top line of the invoice is a Sales Item for the total amount of the saleThe next line is also a Sales Item called "Furnishings subject to county tax" for $5,000The next line is a Sales Tax Item for the county surtax (0.5%, or 1.0%--both are necessary in FL) that calculates that percent of tax on the immediately preceeding line.The next line is a Sales Item called "Less Amount taxed above" for a negative $5,000. Then I have lines for non-taxable items such as freight and shipping.The Tax box at the bottom of the invoice is 6%. This tax calculates on the top line of the invoice only.The result is that the total amount of the sale is taxed at 6% and only $5,000 has the surtax applied.This method works, although as I said, the invoice isn't very pretty. Email me for more info at firstname.lastname@example.org [ mailto:email@example.com ] .
Thanks for the offer. I have a line item for sales for first
$5.000 and one for sales over $5,000 and manually enter the tax. I will give it a try as you have suggested. I understand
what it is you have done.
Could you e-mail me a copy of the invoice. I have a Client that is struggling over this issue also. Thanks
What is your fax number or email address? I will be happy to send a copy of one of ours. You can also just follow those instructions in my first posting. I hope they were very clear.
My fax number is 407-268-4141 or my e-mail address is firstname.lastname@example.org.
Thanks for your help...
in Items you should have Fl state tax item. e.g. 6% County sales tax item e.g. 1.5%
Group sales tax item containing the Fl state sales tax AND county sales tax items.
Also you need a subtotal item.
In your invoice you would set the sales tax at the bottom to non.
enter the item you are selling and price it at $5000.00 Next line add the subtotal item. Next line add the group sales tax item for state and county. 7.5%
Next line add the item you are selling priced at the amount over $5000.00 Next line add the subtotal item. Next line add the State sales tax item.
Bottom line shows the correct amount to be paid and all the amounts go to the correct income and liability accounts.
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