In some states, and with some services you can apply a tax to your client invoices. Please be aware of your local guidelines to ensure you are applying the tax to the proper amounts.

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)

Enter the percentage to those fields which apply. Click Save at the top right to save changes.

Set Matter as Taxable

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.