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)
  • 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.

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.