Sales tax changes (Massachusetts)

Okay, I probably should have used a cute picture of the state of Massachusetts, but to me, Massachusetts means Fenway Park (aka I am a BIG RED SOX FAN).

So August 1, 2009, Massachusetts raised the sales tax rate from 5% to 6.25%. Yikes, how do I fix (or raise my rate) in my QuickBooks program?

Easy. Just go to list, item list, and find your item for Massachusetts sales tax. I had mine listed as Mass. Sales tax. Now make a new item for the Mass. Sales tax (with a new name) and put in the new rate of 6.25%. Do not edit your old sales tax item as this will change the calculations for the sales tax on prior items.

Make sure you use the new item on all future billing with the new rate. Be careful that any invoicing you have done as of August 1st is at the new rate for materials that are taxed. Please be advised that there are several other areas of the sales tax rate that have changed. Please go to Mass. Dept. of Revenue for all of the details on the changes that occured on Saturday. You don't want to make an error in collecting because the money will have to be paid, whether you collected the correct amount or not.

Lynda

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