Entering the Tax Amount
- Go to Setup > Firm Settings > Financial > Tax Settings
In the Tax Settings window:
- Default Matter Tax Status - Default tax methods for new matters. Taxable matters time & expense cards defaults to taxable status. You have the option of making this taxable, Out of State, or nontaxable.
- Enable an Additional Tax Rate - Enable this only if your jurisdiction requires two separate taxes.(ex. one for federal and one for state/province)
- Sales Tax - For taxable matters, this tax rate would be applied to matter cost(expense cards, overhead).
- Service Tax - For taxable matters, this tax rate would be applied to your service fee(time cards)
- Tax ID: You can enter a tax ID if necessary.
Enter the percentage to those fields which apply. Click Save at the top right to save changes.
In order to have time/expense cards set as taxable automatically, Default tax status would need to be set to taxable under Setup > Firm Settings > Financial Settings > Tax Settings > Default Matter Tax Status.
When adding (or editing a matter) go into Advanced Settings > Click the Tax Tab > change the status to Taxable.
- When you click Save, the time/expense cards will now be set as taxable under the tax tab in the time/expense card window.
- If you need to tax only certain items, you can leave the matter as "Non-Taxable".
- Then with each Time/Expense entry, you have the option in Advanced Settings under the tax section to change to taxable/untaxable for the item by checking/unchecking the box.
- Once you generate this matter's invoice, you will see the "Tax Applied" field populate the proper value.