Problem: The taxing authority needs our client to add up labor and materials and multiply by 65% and then multiply by the tax rate.
- Set up the tax maintenance as below.
- Tax ID - TransPriv
- Description – Transaction Privileged Tax.
- Agency – Enter the agency name you send payments to.
- G/L account - Tax.
- Rate – Enter the normal tax rate.
- TaxProductType – Check off what is taxable (usually everything).
- SourceForBasis - Price.
- PercentageOfBasis – In our case it will be 65 (customer will enter based on the information from their state).
- Tax Venues tab – Check off the venues.