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Jeremy_ND
Level 2

How do I set up QuickBooks Enterprise 20.0 to record sales tax on labor for certain States and not other States?

We are required to collect sales tax in multiple states with different taxable products.  ND, MN, SD

Generally for our services and product:

 

ND and MN require sales tax on items sold not labor.  (Easy and working well in QB)

SD requires sales tax collected on our items sold and labor.  (Needs Improvement Everyone has to remember to select Tax on labor line by line)

 

Is there a way to set preferences at the customer level by selecting "Non-Taxable, Tax - Items, Tax - Service (labor)"?   How do we manage the Tax line item without having to remember to select TAX on every Estimate and Invoice for Service Labor?  Thank you.

5 Comments
BigRedConsulting
Community Champion

How do I set up QuickBooks Enterprise 20.0 to record sales tax on labor for certain States and not other States?

There isn't a way to make items taxable only for some sales tax items.

 

In this case I'd set up and use two different labor items, one that is taxable and one that isn't.

Jeremy_ND
Level 2

How do I set up QuickBooks Enterprise 20.0 to record sales tax on labor for certain States and not other States?

Thank you BigRed.  I was hoping that was not the case.  We have over 800 service items and to double the service items list would be a nightmare of human error.

 

Is there a way to have a "flag" or message pop up when an estimate or invoice for a certain customer is created?  Could remind the user that SD requires tax on labor when a estimate for a SD customer is created.  Or Is there a way to control taxability through templates? i.e. 2 - similar templates 1-taxes labor and 1 does not.

 

If Intuit sees this, some good easy coding ideas!  1) on the customer level Taxable/ Non-taxable preference --> change to Non-Taxable, Tax sales Items and Tax - Service Items options.  Please address this Intuit, QB Enterprise is intended for larger businesses and most are required to collect Sales Tax for multiple states with multiple requirements.

MichelleBh
QuickBooks Team

How do I set up QuickBooks Enterprise 20.0 to record sales tax on labor for certain States and not other States?

Hello, @Jeremy_ND

 

I agree with BigRedConsulting that you're unable to make the items taxable only for some sales tax items. As a workaround, you can create two different labor items as what BRC mentioned above. 

 

Let me guide you how: 

 

  1. Go to the Lists menu, then choose Item List
  2. Hit New in the Item List window
  3. Choose Sales Tax for the item type. 
  4. In the Sales Tax Name, enter Taxable labor and Nontaxable labor one at a time. 
  5. Complete the Description, Tax Rate (%), and Tax Agency information.
  6. Tap OK.

 

I can see that having this feature is a great part and can help your business needs. I'll take note of this idea. 

 

Also, I'd encourage you to post this idea or send a request to our Intuit Development page. So they will know about this and for easy coding.

 

Here's how: 

 

  1. Go to this link: https://help.developer.intuit.com/s/.
  2. Select the Sign-up button to create an account.
  3. Hit the Help button, then click the QuickBooks desktop tile.
  4. Select Ask a Question.

 

Additionally, please visit our QuickBooks Blog regularly to check with any updates and newly released features in QuickBooks. 

 

Please browse through these articles below on how to manage sales tax and other related topics. 

 

 

Let me know if you have other concerns by clicking the Reply button below. I'm here to assist you. Have a great day!

Jeremy_ND
Level 2

How do I set up QuickBooks Enterprise 20.0 to record sales tax on labor for certain States and not other States?

Thank you MichelleBh.  Doubling the size of our pricelist from 800 service items to 1600 service items, not including the 1000 + sales items, is not a good option.  (The human error would be a nightmare).  I'm going to email development and hope you do as well to try and resolve this issue for QB enterprise.

Rasa-LilaM
QuickBooks Team

How do I set up QuickBooks Enterprise 20.0 to record sales tax on labor for certain States and not other States?

Thanks for coming back to the Community, Jeremy_ND.


As mentioned by @BigRedConsulting and my colleague, the functionality to make the items taxable only for some sales tax items is unavailable at this time. I still suggest following the workaround shared above.


Please know your voice is important to us. We take customer’s suggestions as an opportunity to guide us on which area of the product we need to improve on. I invite you to visit the Firm of the Future site to learn the latest enhancements and features added to QuickBooks. Choose the Product & Industry News tab and select QuickBooks Product Updates to view them.qbes.png


Additionally, this guide contains resources to help perform tasks easily in QuickBooks Enterprise: Getting started.


Feel free to visit the Community again if you have questions about QuickBooks. I’ll be glad to lend a helping hand. Have a great rest of the day.

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