Updating Sales Tax Rates in QuickBooks Online

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
  • Example:

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:

 

 

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