Tax Code Overview
Tax Codes are labels used to categorize sales and purchases as either taxable or non-taxable. These codes help you accurately track and report the appropriate sales tax to different government agencies.
Tax codes are used in Estimates and Invoicing. If there are more than one tax jurisdictions within your area (i.e. State, County, and city Taxes) you would create one tax code to include all of them with a combined rate.
Tax Codes are on a Company level and are managed within Company Settings (permission required).
Legacy (Classic)
In our previous version, Classic, Tax Codes were on an Event level. In this version, they are on a Company Level. Meaning in Classic, you could only use Tax Codes that were attached to the Event. In Stratus, if an event has no Tax Codes attached, then all Company level Tax Codes are available for use.
Quick Tax Code Setup (QuickBooks Online)
If you are connected to QuickBooks Online, you can easily import your QuickBooks Tax Codes into Contractors Cloud. See the QuickBooks section below.
Tax Code Interface
Details
These are the high-level details for the Financial Account.
Name
This is the descriptive name for the tax code.
Combined Rate
This is the total rate for all tax jurisdictions.
Tax Material/Labor
Here you define if the rate is for Material Only, Labor Only or Both.
Tax Estimate Profit Margin
Here you define of the tax is applied to only items used (in essense the tax you already paid on the items is passed through) or tax is applied on the actual mark up of the estimate.
Comments
Optional comments describing the tax code
Status
This is the status of the tax code. If the status is inactive it will not show up on any lists for use.
Estimate Default
Check this if you want this tax code to be the default on all estimates for the company.
Materials Default
Check this if you want this tax code to be the default on all material orders for the company.
Labor Default
Check this if you want this tax code to be the default on all work orders for the company.
Log Entries
This section contains log entries documenting changes to the Tax Code.
Usage
This shows where the Tax Code is currently being used. Use the Reports for detailed Class reporting.
Events
These are the Events the Tax Code belongs to.
QuickBooks
This shows QuickBooks data related to the Tax Code.
Utilities
This is where a Tax Code is deleted. A Tax Code can not be deleted if it is currently being used.