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Join nowI pay local City income tax on jobs done in different cities, how do you set up the customers to reflect which ones we will owe taxes on and what municipality it will be owed
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Hello there, 9130 3485 0009 5146. Thanks for getting back to us.
You may want to use the Tag feature to label your job/sales transaction as Income Tax or not. Let me show you how:
To learn more about the Tag feature, click here. Then, you can run a Profit and Loss report with the tags in QuickBooks Online. You can customize the report and choose the Tag name. Here's how:
Check these articles for additional information about handling reports in QBO:
Let me know if you have other questions. Take care and stay safe always.
Hi there, 9130 3485 0009 5146.
QuickBooks Online uses the Automated Sales Tax feature to calculate sales tax for your transactions. The program computes the total tax rate based on where you sell and ship the items, the product’s tax category, and tax-exempt status (customer).
We’ll have to enter the correct addresses for your customers on their profile. This is to ensure the accurate tax rate and the amount will show on the invoice or sales receipt.
Here’s how:
I've included a screenshot of how the screen looks like.
To check the owed taxes, run the Sales Tax Liability Report. Then, click on the amount to see the customer’s name. On the report, you’ll see the list of tax agencies and their related areas.
I’m adding some articles that can help with your future tasks. These resources outline the complete steps on how to set QBO to collect sales taxes, add tax categories to items, and other sales tax activities.
Keep in touch if you have any clarifications or other concerns. I’m always ready to lend a helping hand. Have a great week ahead.
Thank you for the response, but I'm not talking about sales tax. Its income tax. the taxes we pay to municipalities for work performed in their cities. When we do 250-350 jobs p/year and about 30-50% of those jobs will be done in cities. the others will be done in townships that has no city income tax. How do we label/tag a job, when it is sold, that this job will have income taxes due to a city, and what city it will be due to.
Hello there, 9130 3485 0009 5146. Thanks for getting back to us.
You may want to use the Tag feature to label your job/sales transaction as Income Tax or not. Let me show you how:
To learn more about the Tag feature, click here. Then, you can run a Profit and Loss report with the tags in QuickBooks Online. You can customize the report and choose the Tag name. Here's how:
Check these articles for additional information about handling reports in QBO:
Let me know if you have other questions. Take care and stay safe always.