Setting Up default Tax Locations
Settings: Tax Locations:
- 'Tax Locations' are how you determine how much tax you are collecting from your clients.
- A separate 'Tax Location' will be created for each physical location where you sell goods and have to report and pay sales tax.
- Goods sold outside of your taxing region should be classified as Out of State or Out of Area.
- 'Tax Locations' are a set of defaults that will be available within 'Clients -> Codes' while setting up your 'Clients' addresses.
Caution: For exact tax rates in your area, it is important for the user to please consult your bookkeeper or local tax laws to ensure proper taxes are applied.
Note: When you update a Tax Location, all items and activities for clients using that Tax Location will also automatically be updated.
'Update Tax' allows you to change the Tax Location for a specific client and automatically update the tax for all items and activities that have not yet been invoiced. Click for more details.
To find and set your Tax Locations in Studio Designer:
- Go to 'Settings' and then click on 'Tax Locations':
- If you plan on charging customers and collecting taxes, you will need to enter a new Tax Location. To enter a new Tax Location press “+New Tax Location”.
- SAVE
Tax Location Details:
'Tax Location' properties and their exact function in relation to setting up your taxes:
Note: Required fields are marked with an *
Tax Location*: The friendly name of the tax location. This should be short and descriptive enough for you to know exactly what tax location you are setting (e.g. LA County)
Description: The long-form description of your tax location. This does not need to be short but should be more descriptive than the Tax Location property (e.g. Los Angeles County 9% Tax Rate)
Tax Rule: This property dictates how Studio Designer interacts with the Tax Percent properties below. Please select the one that applies to your situation as recommended by your bookkeeper. For more details on 'Tax Rules' CLICK HERE
Tax Percent 1, 2, 3: How Studio Designer interacts with these is set by the Tax Rule set above. These properties determine at what rate (in percentages) you are charging in tax for your items.
Time Tax Percent: The rate that will be charged for invoices created from the Activities area. This must be filled in before tax can be charged on time billing invoices.
Selling Taxable: This determines if all goods sold under this tax location are set to taxable by default. (Yes / No: Default = 'No')
Mark Up Taxable: This determines if all mark up an all goods under this tax location are set to taxable by default. (Yes / No: Default = 'No')
Time Taxable: This determines if all Time Billing Entries entered for clients under this tax location are set to taxable by default. (Yes / No: Default = 'No')
Sales Tax Account*: The account set here is where your primary Sales Tax goes when it is collected for record keeping purposes. (Default = 'Sales Tax Payable')
Sales Tax Account 2*: The account set here is where your Sales Tax 2 is located once it is collected. (Default = 'Sales Tax Payable')
Prepaid Tax Account*: The account set here is where your prepaid tax goes for record keeping purposes. (Default = 'Sales Tax Payable')
Prepaid Tax Account 2*: The account set here determines where your secondary prepaid tax goes once it is entered into the system. (Default = 'Sales Tax Payable')
Time Tax Account*: The rate that will be charged for invoices created from the Activities area.This must be filled in before tax can be charged on time billing invoices.(Default = 'Sales Tax Payable')
HST Tax Paid Account: This is where your HST (Harmonized Sales Tax) goes once it is entered into the system.
Local Tax Percent 1, 2, 3, 4: If your local tax charges an additional percentage on top of your state tax, this is where you enter that percentage.