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jennifer_alena
Level 1

Flat Tax Fee combined with Tax Rate

I live in a community that has 2 tax agencies; the city and the borough.

  •      The city tax rate is 3%, up to $1000 taxable sales (max of $30.00 / transaction).
  •      The borough tax rate is 5% on all taxable sales.

 

How do I set up a combined tax rate for this combination in QBO?

1 Comment 1
Jovychris_A
Moderator

Flat Tax Fee combined with Tax Rate

I can help you set up a combined sales tax, Jennifer.

 

By adding a custom rate, you can set a combined sales tax. Please know that we're unable to add a flat tax fee in this setup, but you can allocate the sales tax rate for the city and borough.

 

Here's how:

  1. Go to the Taxes menu and then select Sales Tax.
  2. Click the Sales Tax Settings.
  3. Select Add Rate.
  4. Tick the Combined radio button and provide a rate name.
  5. Enter city and borough tax rate details in Rate 1 and Rate 2 sections, respectively.
  6. Hit Save.

 

Then if your taxable sales transaction exceeds $1,000, consider overriding them later to enter the flat tax value.

 

For more information, I recommend checking these articles:

 

Then you can run a customized Sales Tax Liability report later to check how tax amounts show in QuickBooks Online before you file your monthly or quarterly sales tax return.

 

Please leave a comment if you need more assistance setting up combined taxes. I'll be here to help. Take care always, Jen.

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