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This issue will deal with how to set-up Sales Tax Codes in Quickbooks. Feel free to copy & paste (or print) this article out. (Note: A printer-friendly version of our articles will be provided in the future.)

For all of you who have to fill out Monthly (or Quarterly) Sales Tax Reports - you should be able to answer 4 questions.

#1 - What are your total gross sales for the reporting period?
#2 - What are your taxable sales?
#3 - What are your non-taxable sales?
#4 - How much sales tax did you collect for the reporting period?

After you have answered all of the above - we are ready to move on.

Adding a tax code in Quickbooks 2002

To set up a new tax code, click on Lists on the top menu bar. From the drop-down menu, choose Sales Tax Code List. If you don't see that as an option, chances are that your Sales Tax Preference has not been turned on in your company file. (To turn on the Sales Tax preference, choose Edit from the top menu bar: Select Preferences. Select the Sales Tax icon on the left side of the window. Under the Company Preferences tab, answer YES to the question Do You Charge Sales Tax? Sales Tax is now turned on and active in the company file. (Note: Only the Admin can access this window to turn Sales Tax on or off.)

Quickbooks sets up two sales tax codes by default when you answer yes to the Do You Charge Sales Tax? question.

• Tax - for taxable sales
• Non - for non-taxable sales

Click on the Sales Tax Code button in the bottom left-hand corner of the Sales Tax Code List window. Choose New. A New Sales Tax Code window will appear. Type in a 3 character code. You may use a maximum of 3 characters for each Sales Tax Code. Use somethlng that will make sense to you later on, in case you see the code without it's description. In the description box, type in a brief explanation. Check either the Taxable or Non-Taxable radio button to indicate what type of tax this new code will represent. Click on OK to add the new code to the Sales Tax Code List. That's it . . . you're done.

Adding a tax code in Quickbooks 2001

To set up a new tax code, click on Lists on the top menu bar. From the drop-down menu, choose Item List. If you don't see that as an option, chances are that your Sales Tax Preference has not been turned on in your company file. (To turn on the Sales Tax preference, choose Edit from the top menu bar: Select Preferences. Select the Sales Tax icon on the left side of the window. Under the Company Preferences tab, answer YES to the question Do You Charge Sales Tax? Sales Tax is now turned on and active in the company file. (Note: Only the Admin can access this window to turn Sales Tax on or off.)

Quickbooks sets up two sales tax codes by default when you answer yes to the Do You Charge Sales Tax? question.

• Tax - for taxable sales
• Non - for non-taxable sales

Click on the Item button in the bottom left-hand corner of the Item List window. Choose New. Click on the down arrow to the right of the Type box to open the drop-down list. From this list select Sales Tax Item. Type in a short name for your new sales tax item. Use somethlng that will make sense to you later on, in case you see the code without it's description. In the description box, type in a brief explanation. Type in the tax rate or leave 0.0% to indicate tax-exempt. Click on the down arrow to the right of the Tax Agency box to open the drop-down list. From this list select the Vendor to whom you owe the sales tax collected. Click on OK to add the new code to the Sales Tax Code List. That's it . . . you're done.

Q:  What is the federal standard mileage rate for 2001?
A:  0.345 cents per mile

Q:  What is the federal standard mileage rate for 2002?
A:  0.365 cents per mile

Q:  What is the federal minimum wage?
A:  $5.15 per hour

Q:  What is Arizona's first-year unemployment rate for new businesses?
A:  2.70% of the first $7,000.00 in wages.

Q:  Where can I find county tax rates for Arizona?
A:  Right Here

Q:  Where can I find city tax rates for Arizona?
A:  Click Here

Q:  How can I convert decimal to hexadecimal?
A:  Use the Calculator built into any version of Microsoft Windows.

• For step-by-step instructions, CLICK HERE.
• For a downloadable Conversion Chart, CLICK HERE.
• For a printer-friendly version of the Conversion Chart, CLICK HERE.

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