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Setup Tax Rates

Updated
The Goal: Configure sales tax rates for each location where your chamber/association has a tax presence (nexus), as part of setting up taxes in GrowthZone.

Before You Begin:

  • You need staff permissions to manage billing/finance settings.
  • Setting up taxes is a multistep process. If any of your goods/services are taxable, you will need to configure each of the following in order:
    1. Setup Product Tax Categories
    2. Setup Tax Regions
    3. Setup Tax Rules
    4. Setup Tax Rates (this article)
    5. Setup Tax Sets
  • Have your tax rate(s) ready in decimal format. If you operate in multiple states, gather the rate for each state where you have nexus.

Step-by-Step Instructions

In most cases, sales tax rates must be configured for the physical location where the chamber/association has a presence (nexus). If you operate in multiple states, you will need to enter the tax rates for each state.

  1. Go to Finance, Billing section, click Settings and select Taxes.
  2. On the Tax Rates tab, click the Add button.
  3. Enter a Name for the tax rate. For example: Minnesota to identify a Minnesota tax rate.
  4. Enter an optional Description of the tax rate.
  5. Enter the rate in decimal format. For example: for a 6.5% tax rate, enter 0.065.
  6. If taxing is a Flat Amount, enter the flat amount.
  7. Select the Payable Account that will be used for your taxes payable.
  8. Click Done.

The last step is to set up your tax sets.

Common Pitfalls

  • Entering the rate as a percentage instead of a decimal: The rate field expects decimal format. A 6.5% rate must be entered as 0.065, not 6.5 — otherwise tax will be calculated at 650%.

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