Description

This explains how to set up customer accounts to be charged the correct taxes.

Before You Begin

Both Fee Descriptions and Sales Tax Districts should already be set up.

Context

Four things must be set correctly for a customer to be charged the appropriate taxes.

• You must have at least one fee description entered in Trash Flow.
• You must have a sales tax district to assign to the customer.
• You must place the account in the correct sales tax district per the instructions below.
• If using a bill code to make a charge, any fee descriptions for taxes you wish to charge must be checked off in the bill code window.

Steps to follow

1. Open up a customer account to the Rates tab.
2. In the Tax box on the right column, enter the Sales Tax District that applies to the customer.
3. Whenever you make taxable charges, the customer will now be charged the correct tax percentage(s) for their sales tax district.

When you're done

Once the customer is assigned to a tax district charges will be taxed at the correct rate(s). Payments behave differently depending on whether the customer currently owes any money. If they have a balance then Trash Flow allocates the correct portion of the payment toward taxes. If they have a 0 balance or a credit balance then the program holds off until a taxable charge is made. Once that happens Trash Flow automatically creates a Tax Adjustment to withhold tax from the payment(s).

Further Resources

To learn more about how fee descriptions and tax districts work together, see this example. To get a report to file your taxes, see this link about taxes on the posting report.