cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Anonymous
Not applicable

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

 
12 Comments 12
Highlighted
QuickBooks Team

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

I'll help you with the steps, racer65.

 

Here's how to do it:

  1. Click Taxes.
  2. Click Sales Tax.
  3. Click the Add/edit tax rates and agencies link.
  4. Click Edit. Then, click Save.

You might also want to check out this article about setting up automated sales tax: Set up and use Automated Sales Tax.

 

The Community is always here for you if you have more questions.

Highlighted
Anonymous
Not applicable

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

I'm aware of these instructions, but I don't see any of these settings. If I click on Taxes, I get to a screen that with a small link at the top that says "Sales tax settings". If I click on that, it takes me to a screen with agency listed. If I click edit, the only things you can change are Filing Frequency and Start Date.

I believe I have AST already, and that's why I can't change anything. 

Highlighted
QuickBooks Team

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

Hello there, @Anonymous.

 

Please allow me to join the thread and help share a little more information about sales tax in QuickBooks Online (QBO).

 

If you're using the automated sales tax in QBO, QuickBooks automatically update the rate as long as the your sales tax center and all applicable tax agencies are set up correctly. For now, please double check your tax settings.

 

To learn more and for additional reference, you may check this article: Set up and use Automated Sales Tax.

 

On the other hand, if everything was set up correctly and the rate is still incorrect, I suggest getting in touch with our Support Team to check this further securely. For the support's contact information, you may check it here: Contact the QuickBooks Online Customer Support team.

 

Please know that I'll be always here to help you if you have any other QuickBooks or tax concerns, I'll be always here to help you. Have a great day ahead!

Highlighted
Level 1

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

I have actually had to downgrade from the automated sales tax for this reason. If you are in California DO NOT USE the automated system.

 

The automated system INCORRECTLY assume the state rate is 6.25%. Moreover, when you run a sales tax liability report, all sales, including those out of state, are included in your taxable income. This is wrong. If you downgrade back to the "manual" tax rate, you cannot adjust any invoices or quotes created with the automated system. 

Highlighted
Level 2

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

You are right, but the state of California is at tax rate of 6.25%, and then we add your county, Country District and City District (if applicable). We are in San Jose, our sales tax is 9.25% and it is broken down like this: California State 6.25% Santa Clara County 1% Santa Clara County District 1.75% City of San Jose District 0.25% Total Tax rate: 9.25% The automated tax system does calculate exactly as I described above. I also have tested using other counties and it does calculate correctly. I have issues with QBO tax liability report, they can improve and provide exactly how CDTFA wants reported, but I do believe their tax calculations are correct. Hope this helps.
Highlighted
Level 1

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

I'm having the same issue. The actual sales tax calculated on each sale is correct, however the Sales Tax Liability report is incorrect. I don't know how that is so. 

Highlighted
Moderator

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

Thanks for joining this conversation, @minimin.

 

We've received reports from other users about the issue going on with the Sales Tax Liability report in QuickBooks Online. Please know our product engineers are taking the best course of action to get this fix as soon as possible.

 

While there's no workaround available, I would suggest contacting our QuickBooks Support Team. One of them will be able to examine the report further and shine more light on the situation.

 

After contacting support, you'll be on the list of affected users and will be eligible for any updates via email.

 

Here's how:

 

  1. Sign into your QuickBooks account.
  2. Click the Help tab in the upper-right corner.
  3. Select Contact Us (see sample screenshot below).

 

I’m also adding an article with detailed information on how to edit sales tax rate:​

 

Edit Sales Tax Rate in QuickBooks Online.

 

Let me know if you have any other concerns or questions. I'm here to assist further. Have a great rest of the day.

Highlighted
Level 6

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

additional app for AST reporting and filing

https://taxjar.grsm.io/mytax

 

Highlighted
Level 2

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

This article should clear up how QBO calculates this. They actually do collect 7.25% for CA

 

https://quickbooks.intuit.com/learn-support/en-us/sales-taxes/us-sales-tax-california-sales-tax-sour...

Highlighted
Level 1

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

how do I change my CA tax employer # for my payroll

 

Highlighted
Level 1

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

 I have a new calif employer account number. How do I change my tax setup for state tax payroll?

Highlighted
QuickBooks Team

The sales tax liability report is using a tax rate of 6.25% for CA. This is wrong. The rate is 7.25%. How can I change it?

Good Evening, @gene111

 

I hope you're having a great day so far. It only takes a few easy steps to change your California employer account number. Here's how: 

 

  1. Go to the Gear icon in the top right-hand corner. 
  2. Under the "Your Company" section, pick Account and Settings
  3. Select the Company tab on the left-hand menu bar. 
  4. Press the Edit (Pencil) icon in the top right-hand of the "Company Name" portion of the screen. 
  5. Tap View/Edit EIN in blue writing beside of your old EIN. 
  6. Once finished, hit Save and then Done

 

It's that easy! Here are two more guides that can give more insight into changing your EIN: 

 

 

If there's anything else I can help you with, just let me know. Take care!

Need to get in touch?

Contact us