Tax code groups
A tax code group can be used when multiple tax rates apply, such as local, city, and state sales tax. A tax code group acts as an assembly in which the rate is calculated based on the tax codes included in the group.
For example, you may need to charge 7% state sales tax and 2.5% county sales tax. If you pay multiple agencies directly, you can group these tax rates and charge a single combined rate of 9.5%.
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Log in to Sage Construction Management as an Administrator.
- Select Settings (
) > Company Settings> Taxation.
- Select Add.
- Enter the Code and Description.
- Optional: Select an Effective date.
- Select Is Group.
- Leave Rate set to 0. This value is calculated from the combined tax rates.
- Navigate to Tax group components.
-
Add a tax group component:
- Enter the Sort order
- Optional: Select Include previous if the calculation should include previously applied tax amounts
- Select the Tax code
- Optional: Select Add tax group component to include additional tax codes.
- Select Save or Save and Close.
Calculation with Include Previous unchecked:
Subtotal = $1,000
Tax code 1 rate = 5%
Tax code 2 rate = 2%
Tax 1 value = ($1,000 × 5%) = $50.00
Tax 2 value = ($1,000 × 2%) = $20.00
Tax total = $70.00
Calculation with Include Previous checked:
Subtotal = $1,000
Tax code 1 rate = 5%
Tax code 2 rate = 2%
Tax 1 value = ($1,000 × 5%) = $50.00
Tax 2 value = (($1,000 + $50.00) × 2%) = $21.00
Tax total = $71.00