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IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

 
Best answer 03-24-2019 06:52 PM

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Established Community Backer ***

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

Ah, yes. The second screenshot you sent confirms you are in the newer tax center version. You should be able to "Add agency" I believe. However, you have turned on the automated sales tax feature, which is new and why you see the button to "Turn off sales tax". The screenshot I shared with you is the old self-service tax center. If you have trouble setting up another agency in this new version you may need to contact Intuit QBO support.

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Established Community Backer ***

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

You can add tax agencies and rates and then select them within your customer invoice. You will not be able to include more than one rate per invoice though. 

Experienced Member

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

Can you be more detailed?  This is not helpful as I am indeed asking how one would set up the second rate.  Can you tell me how to do that?

Established Community Backer ***

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

To add a tax rate and agency:

From the left menu, select Taxes.
Under the Related Tasks list on the right, choose Add/edit tax rates and agencies.
Select New and choose either a single or a combined tax rate.
Enter a name for the tax, the agency you pay, and the percentage for the rate. Use a single rate if you pay just one rate to a single agency.
Select Save.

 

If you're required to track sales tax for more than one tax agency, consider setting up a combined tax rate. For example, you might need to report and pay out sales tax to your city, to your county, and to your state.

 

Things to know

With a combined tax rate, your customer sees only one tax rate on their sales form.

However, the sales Tax Center keeps track and splits out the appropriate amounts for each agency.

 

You can add up to 5 components in a combined tax rate.


To add a combined tax rate:

From the left menu, select Taxes.
Under the Related Tasks list on the right, choose Add/edit tax rates and agencies.
Select New, then choose Combined tax rate.
Enter a name for the combined rate and the different sales tax requirements.
(Optional) Choose additional components.
Select Save.


Once you're done, a few things will happen:

 

The new rate appears in the Sales Tax Rate and Agencies list.
You can now select the new combined rate in forms like invoices.
You can view the amounts owed to each agency in the Sales Tax Owed list in the Sales Tax Center.
You can view the Sales Tax Liability report.

Experienced Member

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

I indeed read what you are telling me to do in the "help" section of QB online, however I do not have this option "related tasks" on my screen and thus, to select Add/Edit tax rates and agencies.
Can you tell me why I do not have this option?  Is my QBO not equipped to do a simple task of adding and additional tax rate?  

Established Community Backer ***

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

What happens when you click on "Sales Tax Settings"? Are you the Master Admin for the QBO account? Also, the Chrome browser is best for QBO. And if you are using the desktop app for QBO, some things don't work in the app. See attached what your screens should look like.

Experienced Member

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

Can you see the attached?

Established Community Backer ***

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

Ah, yes. The second screenshot you sent confirms you are in the newer tax center version. You should be able to "Add agency" I believe. However, you have turned on the automated sales tax feature, which is new and why you see the button to "Turn off sales tax". The screenshot I shared with you is the old self-service tax center. If you have trouble setting up another agency in this new version you may need to contact Intuit QBO support.

Experienced Member

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

Thank you for your time and help - I need to set up a different rate for Hawaii and when I try to do so, Hawaii is grayed out so it is not possible.  I will have to contact QBO support as you suggest.  Thanks again for your time.

Established Community Backer ***

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

My pleasure, I wish I could have done more to help you today.

 

I believe if you turn off the automated sales tax tracking you will revert back to the old tax center where you can manually create your agencies and rates. But then I think you would have to contact Intuit to turn it back on and take advantage of the automation feature. So its best to call I think.

Experienced Member

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

If I flip it off, I have NO options but to turn it back on.  It's a real bugger. I can, however, flip it back on without problem, but back to square one.

Established Community Backer ***

Re: IS anyone familiar with setting up a second sales tax rate in QBO? Specifically, in Hawaii, there is a second rate that I would like to set up for a service provided.???

Oh man! Sometimes these new features are not all they are cracked up to be. Thanks for letting me know, I really appreciate it. I'm still in the old tax center for my QBOA firm account. The sample company we Accountants use is also using the old tax center, but I believe it was offering the option to switch to the new center when I logged into it today to create a snapshot for you.

 

Intuit is really good about acting on customer feedback in my experience. Please do let them know when you make contact with them that we need to be able to add additional state agencies and tax rates and/or combined agency tax rates in this new automated tax center. This is not an edge case in my view, I believe you are a hero who has found a flaw that needs fixing! Smiley Happy