Taxes and fees can be difficult to understand and apply correctly. We recommend you research your local laws and regulations carefully to ensure compliance.

You can create tax rules and fees, but you will not be able to edit the tax rules imported from Xactware price lists.

Sales taxes

Various jurisdictions tax different materials in the same category at different rates or they tax different types of labor at different rates even though they use the same material. This makes setting up the sales tax calculations in your price list a little tricky.

First, you will need to set up exceptions to your rule, then you will need to set up your rule.

Create sales tax exceptions

1.   Click Market Pricing.

2.   Select the market you want to edit.

3.   Click Sales Tax Exceptions.

4.   Click Add.

5.   Enter the name of the exception rule.

6.   Select how your item lists will be handled:

•       Exclude items in lists from sales tax: specified items will be excluded from the established tax rate.

•       Tax only items in lists: only items on the lists will be taxed at the indicated rate.

7.   Enter the name of the item list.

8.   Click Add.

9.   Select a category.

10.  Deselect Include All Items to see a list of all items in the category.

11.  Select the items to include in the list.

12.  Click OK.

13.  Repeat steps 7-12 to add as many item lists to the exception rule as needed.

14.  Click Save.

You can now use this exception rule to create your sales tax rules.

Create a new sales tax jurisdiction

Xactware refers to the combined sales tax rate and exceptions of an area as a jurisdiction.

1.   Click Market Pricing.

2.   Select the market you want to edit.

3.   Click Sales Tax Jurisdictions.

4.    Click Add.

5.   Enter the jurisdiction name.

6.   If your jurisdiction taxes various labor situations differently, select Use Job Types and enter the name of the job types.

7.   Enter the order you want the tax to be applied. This is important as it can drastically change how the tax is calculated.

8.   Enter the rate.

9.   Enter the base. This is a calculation entered by using standard variables. Possible values include:

•       EQUIPMENT

•       LABOR

•       MATERIAL

•       TOTAL

•       Mathematical symbols

•       Result of another sales tax

 

10.  Enter a result if the tax will be used in a later calculation.

11.  Select the appropriate Tax/O&P option:

•       O&P on Tax: the sales tax will be calculated first, then the overhead and profit.

•       Tax on O&P: the overhead and profit will be calculated first, then the sales tax. This means that you will be taxing the O&P.

•       Neither

 

12.  If appropriate, select the job type.

13.  Select the exception rule.

14.  Add any necessary translations.

15.  Click OK.

Labor Burden taxes

Burden taxes are calculated based on a labor component. The total burden tax will be the global burden plus the trade specific burden.

Add a global burden tax

1.   Click Market Pricing.

2.   Select the market you want to edit.

3.   Click Global Burden Taxes.

4.   Enter the type and rate.

5.   Add any required translations.

6.   Click Save.

Edit a global burden tax

1.   Click Market Pricing.

2.   Select the market you want to edit.

3.   Click Global Burden Taxes.

4.   Select the tax you would like to change.  

5.   Adjust the type and rate.

6.   Add any required translations.

7.   Click Save.

Add or edit a trade specific burden tax

1.   Click Market Pricing.

2.   Select the market you want to edit.

3.   Click Trade Specific Burden Taxes.

4.   Select the type of labor from the lower portion of the screen.  

5.   Enter the liability rate, fringe benefits, and workers comp.

6.   Click Save.