When you do mobile work, you are likely going to cross into a number of different zips that are in diifferent counties, cities, and possibly even states and each will have various tax codes that need to be applied.
Taxes by Zip Code in GlasPacLX
Making sure you have the right tax rates tied to the right zip codes in your service area is crucial for staying compliant with local tax laws and make things much easier when it comes to processing your taxes every April.
Fortunately, you can set up GlasPacLX to automatically apply any and all relevant taxes by zip code based on where you are performing a job. With LX you can set and it and forget it - unless the tax rates change that is.
Researching Your Tax Rates
First things first, you need to find what the taxes are for each of the zip codes in your service area, this handy tool from tax jar makes it easy to lookup tax rates by zip code. Once you have all the applicable tax rates written down, you can start adding them to GlasPacLX.
Setting Tax Venues
To start adding taxes to LX you will first need to create what's called a Tax Venue, this is a category (most often a city) where numerous tax codes would apply. To create a Tax Venue in GlasPacLX, click Company > Tax Venue then click Insert Item and give the new venue an ID (usually the city name) as well as a description and then save it.
Creating Tax Codes
Now that we've got our Tax Venues set up it's time to create the actual tax codes for you service areas. Click on Company > Tax Maintenance and then select a venue you set up in the previous step and click Create New Tax Code. Clicking this will create a pop-up window where you can enter the following options to create a new tax code:
- Tax ID: Name of the County
- Description: Full description of the tax (e.g., Mayes County Tax)
- Agency: Who you write the checks to (e.g., OTC)
- G/L Account: Select TAX
- Tax Rate: Percentage rate for this tax
- Minimum Basis: Lowest Price amount to apply to this tax (e.g., 0)
- Maximum Basis: Maximum amount to apply to this tax (e.g., 1000000)
- Tax Product Type:
- Materials: Check the box for "Is Taxable."
- SourceForBasis drop down and select "Price."
You can create as many tax codes as you need for each venue that you have set up. We suggest starting with the most general areas first and then getting more specific. For example setting a state tax, a county tax, then finally a city tax.
Applying Tax Codes to Zip Codes
We are in the home stretch, and the final step will be to select the zip codes in your service area and apply the Tax Venues.
Click on Company > Tax by Zip to access the zip code menu. Because we are all about making things easy for you, we have pre-loaded GlasPacLX with every zip code in the USA organized by State. Simply follow these steps to complete the process:
- At the top of the window, select your state.
- Under the drop down for Tax Venue, select the first zip code Tax Venue that needs to be assigned.
- Highlight the line that matches the zip code.
- Click the Set Selected Sales Tax Venue button.
- Repeat the above steps for each zip code, and then click Save.
- Re-open Tax by Zip to set the next Tax Venue.
We've done it. That's it takes to set up your taxes by zip. Now for every mobile job you do, GlasPacLX will automatically apply the correct taxes based on the job's location.
For More Information on Taxes in LX
For more information on setting up taxes and more in-depth explanations of the terms and options GlasPacLX uses, you should check out our youtube video on tax setup: https://www.youtube.com/watch?v=ON0fu1NlAd8