These instructions take you through every place in the program where the tax setup comes into play. Follow these closely, and you should solve whatever tax problems you may be having.
1. Go to Misc/Setup pull-down menu and choose Company/Misc. Info.
2. Go to the Tax Rates tab.
3. Confirm that the correct tax rates are entered here (for Tax 1 especially - it will usually be empty for Taxes 2 and 3). If the tax is 5.25%, then here it should read 0.0525. This is the default tax rate for everywhere, unless it is entered otherwise in the Cities/Postal Codes table.
4. To check the Cities/Postal Codes, from Misc/Setup pull-down menu choose Cities/Postal Codes.
5. Here there can be a different tax 1, 2, and/or 3 for a particular zip code, but if the tax rates for a zip code are the same as the ones entered in step 3, then the tax rates should be blank here - not zero, but blank/empty. The only things that should be entered for tax rates here are tax rates that are different for a particular zip code. Remember also that the tax rate is a percent, so if your tax if 6.25%, then you will enter 0.0625.
6. Check your services and be sure that the ones that are supposed to be taxable are marked as such. From Misc/Setup pull-down menu, choose Services/Products. In the list of services for each category, there are columns that contain checkboxes for each tax. When checked the tax will be applied. Confirm that all appropriate boxes are checked here.
7. Open an order that doesn't appear to be calculating the tax properly.
8. Once this is open, click on the Bill To area of the order to open the Contact Info screen that contains your client's information. On this screen, go to the Profile tab and confirm that the Tax Exempt boxes are either checked or unchecked as appropriate (if this customer should have appropriate taxes applied, then they should be unchecked, whereas if the customer should be tax exempt, then they should be checked).
9. For any order that was created when one or all of the things in steps 1 through 6 were not setup properly, the only way to get the taxes to be included properly now on that order is to right-click on each service description on an order needing taxes and choose Service Details. There is a tab on this Service Details screen that says Taxes, and the appropriate tax boxes should be checked. For any order that has already been entered, you will have to check the tax box in this way for each line item on the order, but for any future orders that are entered, assuming that you have gone through steps 1 through 6, it will set this correctly itself.
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