PS: Setting Up Tax Rates

The Hook: Use this workflow to define effective dates and percentages for your property's tax accounts. Accurate tax rates are essential for proper tax reconciliation and exemption tracking.

Prerequisites

 

Tax Accounts Required: 

• Tax accounts must be established before setting rates. (See article: Establishing Tax Accounts in Customized Accounts).

 

Clean Up: 

• Ensure lines labeled "Unused Tax Item" or other non-applicable lines are made Inactive in the Customized Accounts screen before proceeding.

 

The Steps:

1. Navigate to Accounting Menu > Accounting Admin.
2. Select Tax Rate Schedule.
3. Locate the appropriate tax account in the list.
4. Click the Copy icon to the left of the tax account.
   • Note: This creates a new line highlighted in red. Using the copy function allows the property to maintain a history of all past tax rates.
5. Enter the Effective Date for the new rate.
6. Enter the Tax Rate percentage.
7. Click Save to confirm the changes.

Note: If using a Flat Rate Tax, please create a Support Ticket due to setup processes on the backend. 

 

The Result:

• Success: The new tax rate is saved and will automatically apply to relevant transactions starting on the designated effective date.

Next Steps:

• Connecting Revenue: Setting the rate is only step one. You must now attach these taxes to the corresponding revenue accounts to ensure accurate reporting. (See article: Setting up Tax/Cash Settings).