Tax Code Groups

A Tax Code Group can be used in cases where multiple tax rates come into play such as local, city, and state sales tax. A Tax Code Group acts like an assembly where the rate is based upon the Tax Codes that are included in the group.

For example, you might be required to charge a 7% sales tax for the state and a 2.5% sales tax for the county where you do business. If you are paying multiple agencies, rather than making one payment that will be split by the principal agency, you can group these two sales tax rates together and charge one rate of 9.5%.

Create Sales Tax Groups

  1. Log in to Sage Construction Management as an Admin.
  2. Click Settings (Gear Icon).
  3. Click Company Settings | Taxation.
  4. Click the Add button shown above the grid.
  5. Enter the Code and Description.
  6. Optional: Select an Effective Date.
  7. Important: Check Is Group field.
  8. Leave Rate at zero (0) since this will be set to the sum of the component tax rates.
  9. Navigate to Tax Group Components section below.
  10. Add a Tax Group Component.
    • Enter the Sort Order #
    • Optional: Check/Uncheck Include Previous if it should include previous tax amounts in the calculation. For the first tax code listed in the grid Include Previous checkbox does not apply.
    • Select the Tax Code
  11. Optional: Click the Add Tax Group Component link to add more tax codes.
  12. Click the Save or Save and Close button shown below the grid.

Sales Tax Group Examples

Calculation with Include Previous UNCHECKED:

Subtotal = $1000
Tax Code 1 Rate = 5%
Tax Code 2 Rate = 2%

Tax 1 Value = ($1000 * 5%) = $50.00
Tax 2 Value = ($1000 * 2%) = $20.00
Tax Total = $70.00

Calculation with Include Previous CHECKED:

Subtotal = $1000
Tax Code 1 Rate = 5%
Tax Code 2 Rate = 2%

Tax 1 Value = ($1000 * 5%) = $50.00
Tax 2 Value = (($1000 + $50.00) * 2%) = $21.00
Tax Total = $71.00