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Automated sales tax center doesn't work with NYC because the 4.875% assessed by the city can't be reported as paid. Am I doing something wrong, or is this a QBO issue?

When I create an invoice, sales tax is automatically applies as 4% NY and 4.8875% NYC.

That part is fine, but Automated sales tax center doesn't recognize that the 4.875% should be remitted to the same tax agency (NYSDTF). This forces you to report the sales tax via journal entry, entirely defeating the purpose of the automated sales tax center.

Has anyone figured out an automated workaround or should I just switch to manual sales tax?
Solved
Best answer 09-24-2019

Accepted Solutions
Anonymous
Not applicable

Re: Automated sales tax center doesn't work with NYC because the 4.875% assessed by the city can'...

Thank you for reaching out regarding the sales tax rate, @sangbin.

 

QuickBooks Online calculates the tax rate based on multiple pieces of information, such as the physical address of the business and the address on the invoice/sales receipt. The New York State Department of Revenue should calculate 8.875% of the taxable sales which is composed of 4.0% New York State tax and 4.875% Yonkers City tax.

 

To make sure all taxable sales are reported to the agency, kindly check if the shipping and ZIP codes are correct. The following article provides additional insight and steps on how taxes are calculated: Set up and use Automated Sales Tax.

 

Here are sample illustrations on how QuickBooks calculates NY Sale Tax:


 

If the addresses are correct and still not recognizing the other rate, I'd recommend contacting our QuickBooks Online Care Support. 

  1. Click the (?) Help menu at the top right section of your QBO Dashboard.
  2. Tap the Contact us button.

 

It's my priority to make sure your sales tax return is correct, so please let me know what you find. Hope you have a lovely week!

View solution in original post

3 Comments
Anonymous
Not applicable

Re: Automated sales tax center doesn't work with NYC because the 4.875% assessed by the city can'...

Thank you for reaching out regarding the sales tax rate, @sangbin.

 

QuickBooks Online calculates the tax rate based on multiple pieces of information, such as the physical address of the business and the address on the invoice/sales receipt. The New York State Department of Revenue should calculate 8.875% of the taxable sales which is composed of 4.0% New York State tax and 4.875% Yonkers City tax.

 

To make sure all taxable sales are reported to the agency, kindly check if the shipping and ZIP codes are correct. The following article provides additional insight and steps on how taxes are calculated: Set up and use Automated Sales Tax.

 

Here are sample illustrations on how QuickBooks calculates NY Sale Tax:


 

If the addresses are correct and still not recognizing the other rate, I'd recommend contacting our QuickBooks Online Care Support. 

  1. Click the (?) Help menu at the top right section of your QBO Dashboard.
  2. Tap the Contact us button.

 

It's my priority to make sure your sales tax return is correct, so please let me know what you find. Hope you have a lovely week!

View solution in original post

Level 1

Re: Automated sales tax center doesn't work with NYC because the 4.875% assessed by the city can'...

Hi Jen, 

 

That was actually tremendously helpful. 

 

I knew all of the facts you listed, but in retreading them again I found that two of the invoices didn't have shipping addresses on the invoice. 

 

This caused QBO to recognize them as invoices taxed at the New York City rate, but not as tax to be remitted to NYSDTF. A bit strange, but I worked it out. Possibly a legacy of when I was using the old sales tax center? 

 

Thank you. 

QuickBooks Team

Re: Automated sales tax center doesn't work with NYC because the 4.875% assessed by the city can'...

Hi there, sangbin.

 

Thank you for posting here in QuickBooks Community.

 

I'm happy you got it to work out.

 

Switching to the new sales tax feature doesn't remove the shipping address.

 

Possible reason the NY rate was calculated on the two invoices may be due to changes made in the settings.

 

Please check this article for more details in migrating to automated sales tax and what happens to existing data after migration?: Switch to Automated Sales Tax.

 

I'll be glad to help you if you have any other questions.​ Have a good day!

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