The following provides details on the fields and options on the Global Settings—Taxes panel.
Main Taxes
Apply Taxes
Main Service Tax:
Main Service Tax is the tax applied to the
labor amount on invoices. The default rate can be set in the Company screen.
However, you can change the existing MST rates for the client here by
entering the new MST rate in this field and clicking Apply
to update your MST rate.
Main Expense Tax:
Main Expense Tax is the tax applied to the
expense amount on invoices. The default rate can be set in the Company
screen. However, you can change the existing MET rates for the clients
by entering the new MET rate in this field and clicking Apply
to update your MET rates.
Ceiling for Taxes
Main Service Tax/Main Expense Tax:
This option enables you to enter a ceiling for the MET, MST or sales tax computation purposes. In some places, there is a maximum limit set on the percentage of tax that can be levied, say in Alaska there is a 2% sales tax with a ceiling set at $500. Using this option, you can set the dollar amount beyond which the company cannot set or charge tax to the clients.
Main Service Tax to Exclude Item Tax:
Selected, MST excludes Tax 1/2/3 of the service item while computing the total tax amount to be charged on invoices.
Main Expense Tax to Exclude Item Tax:
Selected, MET excludes Tax 1/2/3 of the expense item while computing the total tax amount to be charged on invoices.
Item Taxes
Default Activity/Expense Rates:
Tax rates appear on many screens. These are user-defined fields. Default rates for Rate 1/2/3 can be assigned here. To give these taxes labels, such as Local Tax, Provincial Tax, Sales Tax or Luxury Tax, enter the label text in the Custom Labels screen. Set the default rates in the % fields. When default rates are assigned, they will be brought forward when creating new activities and expense codes. When an activity or expense code that has taxes assigned to it is selected in Sheet View list or Expense Log, the taxes will be brought forward and recorded with the entry. These default tax rates can be modified when entering time or expenses.
Hide Tax Fields on Sheet View:
You can choose to hide Tax 1/2/3 fields on the Sheet View screen by checking this option.
Hide Tax Fields on Expense Log:
You can choose to hide Tax 1/2/3 fields on the Expense Log screen by checking this option.