Create a Tax Rate

Step 1: Click on the SETTINGS module & select Set up Tax Rates

Note: Existing tax rates cannot be edited or deleted from the system.

Step 2: Click the New button.

Step 3: Type the name of tax rate and % to be applied. ERPLY support recommends including your tax rate in the name of your tax. It can be useful to also include the area for which this applies e.g. "NYC – 8.725".

Note: The tax rate should be your total applicable tax rate. If your state charges 5% and your city charges 2%, you need to combine them to get your effective rate (7%)

Step 4: Save by clicking the Save button.

Info: Once saved, the percent cannot be changed, but new rates may be added, and old rates may be renamed or assigned new numbers in the accounting software.

Price-Based Taxing

In some locations (Massachusetts), some items are taxed differently for the portion of the item’s price that is over a set threshold. This type of tax rate is added as a regular rate, then applied like a normal rate as outlined in Applying your Taxes section.

If item sales price is over a certain threshold, then the value below threshold is taxed with one rate (which can also be 0%) and the value above threshold is taxed at a different rate.

As a next step, you’d associate this new tax rate with a register, or with a product group, so that it would apply automatically when needed.

City/State/County

This is a configuration that can be applied to paid accounts, and is not on by default.

When adding taxes - you can break down by City, State, County. To do this, click New under Components of Sales Tax-City, County and State tax rates.

Fill in the fields and be sure to enter the numeric value, then click Save.

Tax Code

While setting up your tax rates, you can also set up your account codes for your accounting software using the "tax code" field. This works in conjunction with both ERPLY Accounting and our Quickbooks export.

Note: Once saved, the tax percentage cannot be changed, but new rates may be added, and old rates may be renamed or assigned new numbers in the accounting software.