How to Setup County Taxes

Hello there, @eleo. I've got the steps you can follow to set up sales tax in QuickBooks Desktop (QBDT). 

Before you start, ensure you check the tax rates and requirements with the tax agency of each county to ensure accurate recording. You may want to consult a tax officer for this. Please note that different rates need different sales tax items to set up.

To turn on the sales tax feature and set up sales tax items or tax groups, please follow these steps:

1. Go to the Edit menu, then select Preferences.
2. On the Preferences window, select Sales Tax then go to the Company Preferences tab
3. Select Yes to turn on sales tax.
4. Set up the sales tax items or sales tax groups for each county, district, city, etc. where you collect sales tax. Click Add sales tax item to do this.
5. Assign sales tax codes.
6. Set the Sales tax basis (Accrual or Cash). Take into account your company’s accounting and preferences.
7. Set up your preference for paying the sales tax (Monthly, Quarterly, Annual).
8. Select OK.

For more detailed instructions, please refer to this article: Set up sales tax in QuickBooks Desktop.

Additionally, you can run a sales tax liability report to review your sales tax payable and ensure everything is accurate before paying taxes.

I'm still here to back you up whenever you need help in setting up your sales tax for your state. Click the Reply button below to enter your queries.

HI @JanbonN ,

Thank You. Now would i do this step for ALL the counties?

Hey there, @eleo. It's great to see you back in this thread. Let me chime in and add some details on this matter.

Yes, you'll have to set up the sales tax for each county to accurately calculate and track the taxes you need to collect based on the specific tax rates and requirements of each county where you conduct business. My colleague, JanbonN, has provided some helpful steps to guide you through the process in QuickBooks Desktop.

Furthermore, you might consider checking these helpful references to help you manage your sales taxes and other related tasks:

• Collect sales tax.
• Pay sales tax.
• Handle cash-based sales tax.

If there's anything you'd like us to assist you with, feel free to hit the Reply button. We'll always be around the clock to help you. Have a fantastic day ahead!

How do I set it up for county tax to only tax the first $5,000 on the invoice?

I understand the convenience of having the option to limit the county tax for your invoices in QuickBooks Desktop (QBDT), 

Currently, the option to set a limit for county tax automatically applies when it reaches the first $5,000 in your invoices in the QBDT program. Please know that we strive to deliver high-quality service to our users, and our utmost priority is ensuring our product is user-friendly.

With this, I recommend sending your feedback to our Product Development Team so they can review it and consider implementing it in the future. Please know that changes are also based on how popular a specific feature request is. Here's how you can submit feedback:

1. Click the Help menu located at the top.
2. Select Send Feedback Online, then click Product Suggestion.
3. Type in your feedback or feature request.
4. Click the Send Feedback button.
   

In the meantime, you'll have to run the Sales Tax Liability or Sales Tax Revenue Summary report to view the summary of sales by tax agency and sales tax code. Then, if it reaches $5,000, you can manually make the upcoming invoice transactions non-taxable.

I'm also adding this article to further guide you in troubleshooting issues or unexpected results you may encounter while managing your sales tax in QBDT: Resolve common sales tax issues.

We're always around to lend a hand if you need more help managing your sales taxes or anything else related to QuickBooks. Take care and stay safe always!

How do you do this on the web version? 

I have bene painstakingly calculating county taxes with excel for over 2 years. This would be a huge time saver. 

I want to see each county and the gross sales and reportable taxes generated from each county. This would make my life so much easier! thank you!

I'm thrilled to share the steps so you can manage county taxes online, ahotzy. This method saves time when calculating and tracking gross sales and reportable taxes.

In QuickBooks Online, tax agencies represent the city and county jurisdictions where you make payments. It computes how much you owe and provides the respective due dates. Therefore, you don't have to tally them in an Excel file, making your life easier.

Follow the steps below to start the setup:

1. On the left panel, select Taxes.
2. Navigate to the Sales Tax tab and click Sales Tax Settings.
3. On the Edit settings window, press Add agency to choose your county.
4. Enter the necessary information, then save.
5. On the Custom rates section, tap Add rate to fill in the required fields, then save.

Once done, you can manually calculate taxes on invoices or sales receipts by adding the custom rates.

Return to the Sales tax page to view gross sales and reportable taxes generated from each county. From there, locate your agency and click on > More details. You can also run a Tax Liability report for further information. Here's a screenshot for reference:

To learn more on what you can do when editing tax agencies, rates, and settings, refer to this article: Set up your sales tax in QuickBooks Online.

If you're interested in automating the calculation process and registering settlements in the future, check out these resources:

• Set up and use automated sales tax in QuickBooks Online
• Manage sales tax payments in QuickBooks Online

Making work efficient and convenient when managing county taxes or tax management, in general, is our goal. For additional concerns about payments, add them here. I'll be here to assist you.