Updating Sales Tax Rates in QuickBooks Online: Step-By-Step Guide
• Sales tax collected set up in QuickBooks Online should automatically update with the new Milwaukee City and County rate increase.
• Please confirm that the proper amount of tax is being collected when invoicing in 2024.
Updating Sales Tax Rates in QuickBooks Desktop:
• Open your company file and on the top tool bar go to “Lists” / “Item List”
• On the item list, right click anywhere on the list and click “New”
• Select “Sales Tax Item” to create a Milwaukee City tax rate (see below image for example):
- Make sure to select the correct Tax Agency that is used for other Wisconsin Sales tax items
Next, create a Milwaukee County Sales Tax item or modify an existing Milwaukee County Rate
- A separate item for county tax is needed because all other Wisconsin counties will have different rates compared to Milwaukee Co.
- Example below for how a Milwaukee County Sales Tax Item May look:
Next, create a new sales group or modify an existing group.
- Select “Sales Tax Group” (instead of “Sales Tax Item”) when creating a new item.
- Add in the state rate (5%) along with new city (2%) and county rate (0.9%) recently created.
- Note: you may have to create a separate state rate to make the below example work.
- The benefit to doing sales tax groups is that rates are clearly broken out and can be modified and assigned to specific customers with ease.
- Example of a Milwaukee City Sales Tax Rate Group: