Sales tax rates vary widely across the nation with hundreds of thousands of special taxing jurisdictions being implemented. While ZIP codes are well established, most tax jurisdictions do not follow tax rates using only ZIP codes. With all these changes, businesses are required to keep up to date with the latest information on the taxation changes to stay abreast of the standards in taxing rules.
To be able to keep track of these constantly changing taxation rules, Connected Business provides a tool allowing you to determine the most accurate tax rate for everyone, the Zip+4 Taxation. The Postal Codes form in Connected Business has now the ability to add multiple tax rates so all applicable taxes may apply to your transactions.
Adding a Zip+4 Taxation
If you want to apply Zip+4 taxation, you will need to set it up on a new postal code or an existing one within Connected Business. To help you get started, go to the System Manager module > Setup > Postal Code. Click New button from the menu options. Fill out the fields for the postal code.
Click Image to Enlarge
Click on the tax tab and enter the applicable rate for each tax type.
| Field |
Description |
| Plus4Low |
The minimum range for the Plus 4 taxation. This should always be less than the Plus 4 High. |
| Plus4High |
The maximum range for the Plus 4 taxation. Note that Plus 4 low and Plus 4 High values should not overlap with other Zip+4 ranges. |
| State Sales Tax |
Indicates the sales tax for a given state. |
| County Sales Tax |
Indicates the sales tax to be collected for the specific county. |
| City Sales Tax |
Indicates the sales tax to be collected to a specific city. |
| MTA Sales Tax |
Metropolitan Transit Authority (MTA) Sales Tax is a sales tax applicable to business within MTA districts to be paid for MTA projects. Indicate the amount for MTA sales tax. |
| SPD Sales Tax |
Special Purpose District (SPD) sales taxes are imposed in addition to state and local taxes. Indicate the sales tax for SPDs. |
| Other Sales Taxes |
You may add other sales tax to be collected from various taxation rules. |
| Total Sales Tax |
Indicates the sum of all the sales taxes to be collected. |
Click Image to Enlarge
You may modify the applicable tax rates and you can also add as many tax rates when needed.
To find out more about this topic, please refer to the online documentation about Zip +4 Taxation.