Is anyone having issues recently with sales tax (specifically in Texas)? We do not use automated because there are issues. We have to charge sales tax by job location.

Hi, Melissa. I'm here to help.

I've got the steps for the custom sales tax rate to apply correctly to your sales forms in QuickBooks Online (QBO). 

Selecting Based on location in your invoice or sales receipt lets QBO do the sales tax calculation instead of the custom rate you've set up. Since it's the default option for sales tax calculation, we can manually make the custom rate the default option for a specific customer. I've outlined the steps below and added a screenshot for visual reference.

1. After you've selected a customer, entered the Product/Service, and entered other necessary details when creating an invoice or sales receipt, scroll down and click on See the math. 
2. From the Customer section, select Edit.
3. From the Default tax rate drop-down list, choose the custom rate you've set up. 
4. Select Save, then, Close.
   

If you're working on a new invoice layout, here are the steps:

1. In the invoice window, scroll down and click on See the math.
2. Choose the custom rate you've added. 
3. Hit Close, then, Yes when prompted.
   

    

If this is resolved, let me add this article as a guide in recording, adjusting and deleting sales tax payments in QBO: Manage sales tax payments in QuickBooks Online. 

Keep us posted if the custom sales tax rate still doesn't correctly calculate in QBO. We'll do our best to assist.

Yes, I know how to set them up.  My issue is something must have changed over the last month "behind the scenes".  The tax rates that I set up as you described have worked fine for the last year or so.  Now, all of a sudden, the calculations are incorrect.  For example, some of the tax rates we have set up to collect 8.25% in tax all of a sudden only calculate at the State rate of 6.25%.  We have changed nothing on our end.

Yes, I am aware of how to set them up.  That is how they were set up for at least a year or so.  Something must have changed "behind the scenes" because we have changed nothing on our end.  The rates have been calculating correctly until the last month or so.  For example, a location that is to be calculated at 8.25% is now only calculated at the State rate of 6.25%.  It does not calculate the additional jurisdiction for the additional 2%.  These previously worked with no issues.  And, I do have them set up as a combined tax rate.

I recognize the cruciality of ensuring your sales tax rates used are calculating taxes accurately, Melissa. Let me route you to the best support available to help you check this further. 

QuickBooks calculates taxes based on the rates and locations you set up within the program. Since you've encountered an unexpected behavior where the 2% for the additional jurisdiction wasn't calculated, I recommend contacting our Customer Live Support for further assistance. They have the necessary tools to review your account securely and investigate the root cause of this issue. 

To reach them, you can follow these steps:

1. Go to the Help menu, then select the Search tab.
2. Click Contact Us.
3. Enter a brief description of your concern and select Continue.
4. Choose either Start a Chat or Get a Callback and start connecting with them.

Additionally, here's an article that you can read to learn more about modifying the sales tax rate: Edit the sales tax rate in QuickBooks Online.

If you need to adjust your sales tax due within the program, please refer to this guide: Create or delete a sales tax adjustment in QuickBooks Online.

Please know you can always get back to us here in the Community if you have any questions or concerns about sales taxes. We'll be around to lend a helping hand.