Working with Sales Taxes in Peachtree Accounting Software
If your business sells taxable goods or services, you collect the sales tax for the taxing authority — that's the term Peachtree uses to identify the agency that has the right to tell
Suppose that your state along with several counties in your state charge a sales tax. In this case, you need to set up Sales Tax Authorities for your state and for each county as well.
Most states base the tax amount on the total invoice amount, but some states base their sales tax on the individual line item amount. Peachtree provides the ability to calculate sales taxes using a variety of methods. Table 1 illustrates the different scenarios in which your state might calculate sales tax. (Of course, if your state doesn't have sales taxes . . . feel free to disregard this table!)
Table 1: Sales Tax Scenarios
Scenario | What It Does |
Single tax rate | Applies the standard tax rate on all sales regardless of amount. |
Maximum dollar sales | Applies the standard tax rate up to a ceiling amount. After that, no more tax is calculated. For example, if the tax is 3% on the first $4,000 of a sale and the sale is $5,000, only $4,000 is taxed at the 3% amount. The remaining $1,000 is untaxed. |
Print
Email
Digg It
del.icio.us
