Calculate & Remit Sales Taxes
This Help File Page was last Modified on 04/15/2012
Calculate & Remit Sales Taxes This Help File Page was last Modified on 04/15/2012 |
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Calculate & Remit Sales Taxes This Help File Page was last Modified on 04/15/2012 |
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□ | The Decision - How should you Calculate & Remit Sales Taxes? |
• | Determine whether you will Remit Sales Taxes based on sale's Invoice or the actual Receipt. |
• | This decision must be based on the rules of your State and/or Federal Taxing Authorities. |
□ | Accounts Receivable module steps to Charge Sales Tax: |
1. | Indicate how any National and/or Local Sales Taxes are handled in User Options on the Tax tab. |
2. | For calculating and assessing Local Sales Taxes when their is no National Sales Tax (the US has no National Sales Tax, Canada does), create the needed Sales Tax Classes. |
3. | On the Subscribers Form's Accounting Info tab enter the required Sales Tax assessment information. |
4. | Sales are entered indicating which Detail Line Items will be assessed Sales Tax. |
5. | Post the Receipts for these Sales. |
6. | Allocate your Receipts (and by default the Sales Taxes that were paid) to the appropriate Invoice(s). |
□ | Reports for calculating Sales Taxes Owed: |
• | Sales Taxes Collected Report - Used if you remit the Sales Tax on an "As Collected" basis. |
• | Sales Taxes Invoiced Report - Used if you remit the Sales Tax on an "As Billed" basis. |
• | Sales Tax Breakdown Report - Provides the detailed information for Taxing Authorities that have multiple Local Option Sales Tax Rates |
□ | Accounts Payable module steps to Remit Sales Tax: |
1. | Create a Vendor for all the Departments of Revenue to which you remit the tax. |
2. | Determine whether you will Remit Sales Taxes based on Invoices or Receipts - see The Decision above. |
3. | Calculate the Sales Tax that you are required to remit to each Taxing Authority using either the Sales Taxes Collected Report or Sales Taxes Invoiced Report. |
4. | Create Purchase Invoice(s) for the amount of Sales Tax that is due |
5. | Create a Payment for the Sales Tax Invoice(s). |
6. | Print the Checks and mail them in a timely manner, and with the required reporting documentation. |