cancel
Showing results for 
Search instead for 
Did you mean: 
SalesTaxSolved
Level 2

Intuit applying wrong rate for Milwaukee Wisconsin

I have notified Intuit 2 times regarding the wrong rate being applied for Milwaukee (applies 7.5%) and the incorrect rate is still in effect. The correct sales tax rate for 2024 is 7.9%.  Intuit is opening itself up to a lawsuit by not correcting the rate to 7.9%

 

COMBINED TAX RATE

7.9%

LOCATION

XXXX N WASAUKEE RD
MILWAUKEE WI

JURISDICTION BREAKDOWN

WISCONSIN 5%
MILWAUKEE 0.9%
MILWAUKEE 2%
3 Comments 3
Clark_B
QuickBooks Team

Intuit applying wrong rate for Milwaukee Wisconsin

I appreciate you taking the time to express your concerns, @SalesTaxSolved.

 

Let me help and provide insight into why your Sales Tax Rate is incorrect in QuickBooks Online (QBO).

 

To begin with, QBO automatically calculates the total sales tax rate based on multiple factors, such as the tax-exempt status of your customer, the location where you sell or ship, and the sales tax category of your product or service. The total sales tax rate includes both state and local rates, such as city, county, and/or district rates.

 

We can create a sales tax adjustment to record a credit to match the sales tax payment. To do this, you'll need to create an account for the adjustment. 

 

You can set up an income account if you want to decrease the amount due, or an expense account if you need to increase the sales tax due. I also suggest consulting an accountant to choose the appropriate account and detail types. 

 

Once verified, you can follow the steps below:

 

  1. Go to the Gear Icon, then Chart of Accounts.
  2. Click on New.
  3. Choose Income or Expense from the Account Type drop-down.
  4. Select the account's Detail Type.
  5. Name your adjustment account.
  6. Click on Save and Close.

 

After that, go to the Sales Tax tab to add an adjustment. Here's how:

 

  1. Go to Taxes from the left menu, then Sales Tax tab.
  2. Locate the tax period you need to adjust and hit View Return.
  3. Tap Add an adjustment.
  4. Select the Reason for the adjustment.
  5. Choose the Account for adjusting sales tax.
  6. Enter the adjustment amount.
  7. Click Add.

 

For more detailed information, refer to this article: Create or delete a sales tax adjustment in QuickBooks Online.

 

In addition, we can also override the tax amounts in an invoice or sales receipt to ensure we get the correct amount. Here's how:

 

  1. After adding the invoice details, scroll down then click the See the math link (under the Select tax rate portion). 
  2. Under Products and Services click Edit.
  3. Enter the correct rate or the amount.
  4. Set a reason, then click Confirm.
  5. Hit Close

 

I'll also add this link in case you need help managing sales tax. It contains topics with articles to guide you along: Manage taxes in QuickBooks.

 

Please don't hesitate to leave a comment below, if you have other questions or concerns with the sales tax rate. I'll be around to help. Take care and have a good one.

SalesTaxSolved
Level 2

Intuit applying wrong rate for Milwaukee Wisconsin

Clark

 

Thank you for your response.  I now have documentation that Intuit and it's engineers are fully aware that Intuit's sales tax service is using old sales tax rates in some areas. In addition, your response clearly documents that Intuit has no interest in correcting Intuit's sales tax database when sales tax calculation errors are found and that Intuit does not have a process in place for verifying and correcting its sales tax database errors.  

 

With sales tax calculations you are either 100% accurate or you do not have any business offering the service.  The penalties imposed by states and local governments are substantial when sales tax is not properly calculated.

 

I look forward to seeing Intuit correct the errors in its sales tax database.

 

 

SalesTaxSolved
Level 2

Intuit applying wrong rate for Milwaukee Wisconsin

How long will it take Intuit to figure out that they just provided evidence that establishes the grounds needed for a sales tax class action lawsuit against Intuit?  Mr. Clark and other members have failed to respond that they are correcting the sales tax rate error for the City of Milwaukee and they are going to continue to provide QBO advanced users with an incorrect rate for the City of Milwaukee.

Need to get in touch?

Contact us