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Partial Taxes

Everyone may have already been discussing this issue, but I was so new to things I didn't understand or know I had a problem. Further more, I'm not an account type and so the details of all these numbers are a mystery to me. Mea culpa and thanks for your patience.

We are having trouble including partial taxes on our invoices. Because C&P does everything by task, we are challenged to tax only a part of the costs on a task. When our accountant talked with C&P, they recommended that we add a new task and include in that task only the taxable costs and make it taxable. Right now the way we are handling it is to create one extra task per job, back out the taxable amounts, and place them in this task and make it fully taxed.

Is there a better way?

Thanks,

Allyn B. Summa Director, Strategic Digital Media Kircher
www.wjkircher.com

My question is - Why? Why tax only part of a task?

We live in California and sales tax is a hot audit area. Most everything we do is taxable. Even services. But we have an occasion to ship out-of-state (non-taxable) and sample pieces will be drop shipped to California address (taxable). Only then do I figure a % of all tasks as taxable on a separate task (clicked taxable) with an offsetting credit task (clicked non-taxable). But none of this is viewed on the invoice as I use the roll-up feature.

What other circumstances would cause you to only tax a portion of a task?

Roxanne Cowan

We're in the state of Washington. We don't charge tax on labor but do charge tax on hard goods such as printing. We just make our labor tasks non-taxable and our printing and other taxable items set to collect sales tax. It's pretty simple if you set your task table up that way. E-mail me if you have more questions.

Lucia Mumm Full Circle! Marketing, Design & Printing

We do not assign a rate to our "tax task", but do a manual calculation of the appropriate state sales tax for each invoice and enter that amount for that task. It is a little more time-consuming, but we are assured that we are assessing tax correctly.

Mary Beth Harris Controller Interactive Marketing Group, Inc.

I had a similar issue when I was with an agency. Some clients were public, and therefore non-tax. Some deliverables were for resale, and again not taxed to client. Solution: additional task codes as need, same as current codes but with the last letter changed to "X". (In my state labor was not taxed, so it typically applied to printing and other material costs.

Hope this helps!

Martin Pennoni Consultant

I can think of at least two:

1. When you have multiple vendors under that task and one vendor charges you tax and another vendor does not charge you sales tax even though he should have. 2. The vendor charges you sales tax on everything but "Shipping & Delivery" (which is taxable in this state).

Mary McMurtrey

We are in California and so everything is usually taxable that goes into completing a tangible product. We have some jobs that have split sales tax because of the materials being shipped to two different locations. We have the client setup so that the sales tax most used is Rate 1 and the other is Rate 2. Then we also have some where partial shipment is sent to the client location, (taxable), and the remainder is sent to a Direct Mail House, (non-taxable). We figure out what percent of the amount is taxable, and pull the task that we can split that amount and show as having sales tax and the remainder of the task/tasks the X in the sales tax box is removed.

Most of the PR/Web design jobs are non-taxable and have tasks in C&P for those items that are not taxable.

Judi Durkin J2 Marketing Services