How to Setup Tax Codes

[Jason Zander]

To setup Tax Codes, go to Tools >> Tax Codes...
<img src="http://resaleworld.com/videos/jason/2009-07-22_1752.png">

From here, we can edit any existing Tax Types as well as Add or Delete the specified Type.

When clicking on Add Type, you will be presented with a few screens. The first will ask for the Description of the Tax Type. In this first example, we will create a new tax type for non-taxable items. After you type in the description, you will be shown the Tax Detail screen. Here is where you enter a description for the Tax Detail as well as enter the percentages.

<img src="http://resaleworld.com/videos/jason/2009-07-22_1756.png">

Since this Tax Type is only for non-tax items, this one is complete. Just click the Save button and you will be back at your Tax Code screen.

Here is what that Tax Type looks at when complete
<img src="http://resaleworld.com/videos/jason/2009-07-22_1800.png">


*Note* If the specified Tax Type is in use, you wont be able to delete it, it will only remove the details of that Tax Type

[Jason Zander]

For a more involved Tax Schedule, we will now setup a new Tax Type with the following requirements. A certain item gets a normal 2% state tax for the full amount. The county however collects an additional 3% tax for any amount over $35. As another requirement, this county tax cannot be exempt.

Again, we will be adding in a new Type, so click Add Type... in my case I am going to call this one Special - Shoes Tax

<img src="http://resaleworld.com/videos/jason/2009-07-22_1803.png">

Now comes adding the details. For the first detail, we will use the normal 2% state tax. For the description, call this state.

<img src="http://resaleworld.com/videos/jason/2009-07-22_1804.png">

Then click Save and Add Another.

Now for the trickier Detail. Since this one is specific to the county for shoes, we will call this County - Shoes. The percentage will be 3 with a base Amount of 35. Since the county only collects tax for the amount over $35, we need to check the box to Do not tax base amount. Also, selecting No for the Tax Emption question. Then click Save

<img src="http://resaleworld.com/videos/jason/2009-07-22_1806.png">

The final Detail screen for this Tax now looks like this.

<img src="http://resaleworld.com/videos/jason/2009-07-22_1807.png">



*Notes*
-The Do not Tax Base amount option is whether you need to tax the entire amount or only the difference between the base amount and the entire amount. The base amount is also cumulative for items in that particular tax details. So using my example above, if someone bought 1 pair of shoes and the amount came to $25, the special County Tax would be 0 since it was not over $35. If however someone bought 2 pairs and they totaled $50, then the special County Tax would collect on 3% of $15 dollars (50-35). If I did not have the Do not Tax Base amount option checked, then the 2 pairs at $50 would have a 3% tax on the full $50.

-You may have also noticed that you can separate if certain parts of a Tax Type can be exempt or not. If again for example, a particular item can be state exempt but not county exempt; you would create 2 Tax Details in the same Tax type. One where the State Detail is set to Yes and the County Tax is set to No