URGENT I need Help to set up sales tax for state, county and city in QB Desktop

I'm here to help share how you're able to set up sales tax, @twilalouisejames.

In QuickBooks Desktop, you can create a sales tax group to combine sales taxes for cities in the same county. And you'll have to create a new item for the sales tax rate in each city. Let me show you how.

1. Go to Vendors.
2. Select Sales Tax.
3. Click Manage Sales Tax.
4. Under SET UP SALES TAX, select Sales Tax Preferences.
5. On the SET UP SALES TAX ITEM section, select Add sales tax item.
6. Enter the name of your new sales tax item. Say it is the name of the city.
7. Below the Tax Rate (%) field, enter the rate accordingly.
8. Choose an agency for your sales tax.
9. Select OK.
10. Click OK.

Once done, go ahead and use the steps outlined in this article to create a sales tax group for each county and city sales tax: Set up Sales Tax and Sales Tax Group in QuickBooks Desktop.

I'm adding this article that'll help guide you through the steps once you need to start collecting and processing sales taxes: Record taxes to easily Monitor and Remit to the Appropriate Tax Collecting Agency.

If there's anything else that I can help you with besides how to set up sales tax, please let me know using the Reply button below. I'll be here ready to assist you. Take care and stay safe!

May I call you?

I have vendor Agency already.  California = CDTFA.

It's the sales/invoices section I am having trouble with.  For example,  Riverside County is 7.75%  Murrieta, Temecula, and some other cities are 8.75%.  At the bottom of the invoice I code the tax as RS-Temecula my sales tax calculates 1%    ?? How do I set up the group?  I have listed all the cities that are 8.75 under Riverside County.  I don't have something right.  May I call you? 

I appreciate you for getting back and sharing additional details, @twilalouisejames. I'll help you with setting up a sales tax group for your invoices.

You'll be able to set up a sales tax group for multiple sales tax items that appear on the same sales transaction through the Item List menu.

Here's how:

1. Open your QuickBooks Desktop (QBDT) file.
2. Go to the Lists menu, then click on Item List.
3. Tap on the dropdown arrow under Item.
4. Select New.
5. Choose Sales Tax Group as Type.
6. On the Group Name/Number field, type your preferred name for the tax item group. 
7. Enter each sales tax that you need to include in the group. If the tax item is not set up yet, select Add New, then follow the steps in creating a tax item.
8. Hit OK.

Then, use the tax item when recording your invoices.

To learn more about the process, you can open this article: Set up sales tax in QuickBooks Desktop.

On the other hand, if you wish to connect with a live representative for further assistance, check out these steps:

1. Open QuickBooks.
2. Go to Help, then select QuickBooks Desktop Help.
3. Select Contact Us.
4. Give a brief description of your issue, then select Let's talk.
5. Choose a way to connect.

In case you need help with displaying multiple tax rates on your transactions in the future, you can use this link as your reference: Show multiple sales tax items on an invoice.

If you have any other follow-up questions about sales taxes, let me know by adding a comment below. I'm just a post way to help. Keep safe!

What about quickbooks online?? Can we set up groups?

Thanks for jumping in the thread, @Delonaa02. I'm glad to share some insights about setting up sales tax groups in QuickBooks Online (QBO).

The option to set up sales tax groups in QuickBooks Online is unavailable. However, we can utilize the combined tax rate. That has the same functionality as the Sale tax group option in QuickBooks Desktop. I can show you how to add the combined sales tax rate in QBO.

Here's how:

1. Go to the Taxes menu, then choose Sales tax.
2. Below the  Related Tasks list on the right section, select Add/edit tax rates and agencies.
3. Click New, then select Combined tax rate.
4. Choose a name for the combined rate and the different sales tax requirements.
5. If necessary, select Add Another Component to add more than two rates.
6. Then, select Save.

Once done, please keep in mind the following things that will happen:

• The new rate appears in the Sales Tax Rate and Agencies list.
• You can now select the new combined rate in forms like invoices.
• You can view the amounts owed to each agency in the Sales Tax Owed list in the Sales Tax Center.
• You can view the Sales Tax Liability report.

You can refer to this article for more details:  Set up your sales tax in QuickBooks Online.

If you want to use the automated sales tax feature in QBO, you can check out this article for guidance: Set up and use automated sales tax in QuickBooks Online.

I'll be here if you need help managing your sales taxes or other QuickBooks-related concerns. Stay safe!

Thank you for your reply.

However that doesn't address the issue with preparing a sales tax return in California with different district and city taxes that all should appear under the correct county.  

We have several customers that will ship products to different counties, cities and districts with different sales tax rates.    It would be helpful if the reports at least clumped the counties together.  

Thank you!

Delona

Thanks for your reply, @Delonaa02. I'm here to share additional information and make it will help you resolve your concern.

As I've mentioned above, the option to set up sales tax groups is unavailable. Since the combined sales tax doesn't work for you and that's the only option available in QuickBooks Online.

I'd suggest sending feedback to our product developers for the feature you'd like to add that will help resolve your concern in QuickBooks Online. This way, our product development team will get a great chance to know this and may add these feature enhancements in future updates.

Here's how:

1. Go to the Gear icon.
2. Choose Feedback.
3. Enter your comments or product suggestions.
4. Then, click Next to submit feedback.

You can visit our QuickBooks Online Feature Requests website to track the status of your submitted feedback.

I've also added the following articles for future reference:

• Manage sales tax payments in QuickBooks Online
• File your sales tax return and record sales tax payments in QuickBooks Online
  
  

Don't hesitate to reply if you have clarifications or additional information. I'd be glad to assist you. All the best to you and your business!

Hello @GebelAlainaM .

As I consider switching to QB Online, this is a feature we will likely need. I see your answer is now over a year old. Is it now the case that it is in fact possible to setup sales tax groups in QB Online? According to the following document, it seems that is the case.

https://quickbooks.intuit.com/learn-support/en-ca/help-article/sales-taxes/add-group-sales-tax-rate/...

Thank you for your answers here and for clarifying this.

I know how significant setting up sales tax groups,brandon. Let me chime in and provide more details about this feature.

Sales tax groups are available in other regions, such as Canada. However, we can combine sales tax rates in the US. Although the terms differ, they serve the same purpose. Please note that you can add up to 7 components in a combined tax rate. 

Here's how to add a combined tax rate:

1. Go to Taxes, then select Sales Tax. 
2. Under the Related Tasks list on the right, click Add/edit tax rates and agencies.
3. Select New and click Combined tax rate.
4. Provide a name for the combined rate and the different sales tax requirements.
5. If necessary, select Add Another Component to add more than two rates.
6. Once done, click Save.

You can check this article for more information about setting up, editing, and deactivating your sales tax rate and settings: Set up your sales tax in QuickBooks Online.

I've added this article for the complete guidelines on how to manage your sales tax payments to handle them correctly: Manage sales tax payments in QuickBooks Online.

Please don't hesitate to ask any additional questions or provide more details by simply hitting the Reply button. I'm dedicated to guiding you in managing your sales taxes in QuickBooks Online. Keep safe.