How to Set Up Taxes in Sage Timeslips - dummies

How to Set Up Taxes in Sage Timeslips

By Elaine Marmel

If your state, county, or city government requires that you charge tax to your clients for the work you perform, you can use the Sage Timeslips Taxes feature. To use the Taxes feature, you first set up taxes and then you assign them to clients.

When you set up taxes, you define three components:

  • Jurisdictions identify the government or location that charges a tax. Timeslips predefines jurisdictions for each U.S. state.

  • Tax Rate Rules define the details of the tax that a jurisdiction charges, including the tax percentages, whether the tax applies to tasks, to expenses, or to both, and how taxes appear on bills.

  • Tax Profiles group one or more tax rate rules, such as state and county taxes. You assign a profile to each client and to tasks and expenses, as appropriate.

To set up the feature, follow these steps:

  1. Choose Setup→Taxes.

  2. On the Jurisdictions tab, define additional jurisdictions you need:

    1. Click the New button and, in the Tax Jurisdictions dialog box that appears, use the Type drop-down list to specify whether the jurisdiction you’re adding is a federal, state, city, county, or other type of jurisdiction.

    2. Fill in the two text boxes that describe the jurisdiction.

      For example, when you create a county jurisdiction, you identify the county name and the county’s state.

  3. Click the Tax Rate Rules tab, select the state for which you need to define tax rate rules, and click the Open button.

    For this example, select Florida.

  4. In the Tax Rate Rules dialog box that appears:

    1. Supply the tax rate for the jurisdiction as a percentage.

      That is, type 5%, for example, not .05.

    2. Use the Type of Charges drop-down list to specify whether the tax applies to time charges, expense charges, or both.

    3. Use the Additional Rules section to set additional options for the tax.

    4. Use the Formatting on the Bill section to specify whether and how to identify slips on bills for which you charge taxes.


  5. Repeat Steps 2–4 for other jurisdictions for which you charge tax.

    If Timeslips prompts you to select tasks or expenses to which the tax applies, you can right-click and choose all to avoid having to individually select tasks or expenses.

  6. Click the Tax Profiles tab, and open the jurisdiction for which you want to create a profile.

    In this example, open the Florida tax profile.


  7. Use the drop-down lists to select tax rate rules to a profile.

  8. Assign the appropriate tax profile to each client on the Arrangement 2 tab of the Client Information window.

  9. Assign the appropriate tax rule to each task and expense using the Billing tab of the Task Information window and the Expense Information window