Setup Sales Tax (US Region)

Setup Sales Tax (US Region)

QuickBooks Online only supports two different tax structures
  • Single: Where a single rate is applied to the invoice and payable to a single tax agency
  • Combined: Where a (combined) set of tax rates payable to different agencies is set for each invoice.
Note: QuickBooks online does not support complex tax rating per line, which will limit the tax locales that tax services differently to products (I.e. Connecticut).  If you require Complex Tax Structures, you might want to consider using another cloud accounting system such as Xero,  with native support for complex tax structures.

Wise-Sync will map ConnectWise tax based on the selection made in the Tax Code setup in Wise-Sync. The recommended setting to ensure taxes are applied for each invoice should be set to "Tax Group", as this will match the ConnectWise Tax Code Name on the Invoice to the Tax Rate Name in QuickBooks Online. 

Sales Tax Setup

  1. Click on the Taxes menu
  2. Click on Sales Tax

Step 1: [Check] Edit Sales Tax Settings

Check to ensure that Sales Tax will be correctly calculated on your Customer Invoices. If Sales Tax has not been enabled, this step will need to be completed first.

  1. Confirm that the sales tax setting is "Yes"
  2. Set the Default Sales Tax to the most common tax code for your customers purchases.
  3. [Optional] Set the options for 
      - Mark all new customers taxable
      - Mark all new products and service taxable.
  4. Press Save

Step 2a: Create a Single Tax Rate

Click > Add / Edit New Sales Tax Rates and Agencies from the navigation panel on the right of the Tax Rates Page.

Step 1: Create (or Edit) a Tax Rate.

  1. Click New to create a New Single Tax Rate

    Note: If you already have Tax Rates setup in QBO, then you only need to check the names match between the systems.

  2. Determine whether you require a Single Rate, or Combined Rate.

    Single: If you only need to pay a single Agency.
    Combined: If you need to pay multiple Agencies.

    Select Single.

  3. Set the Tax Rate and Match against ConnectWise Tax Code

    Item 1: Enter the Same Name as defined in the ConnectWise Tax Code Description
    Item 2: Enter the Rate (as whole units I.e. 15% = 15)

    Refer to the ConnectWise Tax Code for the same Tax Rate details: