Use this window to create sales tax agencies. These agencies are the specific governmental units who will receive the sales taxes you collect. The agencies created here will be applied to the sales tax ID that you are currently creating. In addition, they will be available, once they are created, to be applied to other sales tax IDs.
- Agency ID: If you have auto-create IDs turned on, Sage 50 will automatically create an ID here. Otherwise, enter a brief ID here, something that clearly identifies the agency to you, such as GASTATE for the state of Georgia or GWINNETT for Gwinnett County.
Note: If you have already created the agency that you want to add to the sales tax ID you are creating, simply select the drop-down arrow on the Sales tax agency ID field and select it from the list. The remainder of the fields on this page will be filled automatically.
- Agency name: Enter the name of the agency here, such as State of Georgia or Gwinnett County.
- Which vendor do you send the taxes you've collected to?: Enter or select the vendor to whom you will send the collected sales taxes. Although the agency might be a county or city, you might actually send the taxes to the state. In this case, enter or select the vendor that represents the state. If you have already created a vendor record for the agency, select that vendor. If not, you can enter a new vendor ID here and Sage 50 will allow you to set up the vendor during this wizard.
- How are sales taxes calculated for this agency? If the agency collects a flat rate tax (such as 4%, select By single rate. Otherwise, if the agency collects based on a formula of some sort, select By formula. Select one of the options below for information on the fields that will be available depending on your choice here.
Fixed Rate Agency
- Rate: Enter the percentage of this agency for the sales tax ID you are creating.
See an example
You are creating a sales tax ID for Gwinnett County, Georgia, whose total sales tax is 6%. The state portion is 4% and the county portion is 2%. If you are setting up the state agency here, you would enter 4 here.
Variable Rate Agency/based on a formula
- Which amount should be used to calculate sales taxes?: Select either total taxable sales (the total of an entire invoice) or each taxable line item. You can then
- Enter a dollar limit for which a first tax rate is to apply.
- Enter the percentage to charge for the first dollar limit.
- Enter a second percentage for that portion of sales over and above the set dollar limit.
- Select an account to track all sales taxes: Select a general ledger account to which collected sales taxes will be applied. This account, or "bucket", is where the money you owe the taxing authority will go, and it will be reported on your Balance Sheet as part of your liabilities (money you owe). If all of your sales tax is payable to your state government, you might only need one sales tax G/L account. If you also sell items taxed by the federal government, you can set up an additional account. You can either select an existing account or create a new one here. If you create a new one, Sage 50 will allow you to do so during this wizard.