Flat rate pricing and flat rate taxing in QuickBooks...


J

jonpotzer

Hello everyone,

I am in New Jersey and we have a 7% tax on Labor and don't charge tax
for Material.

At our company we charge Flat rate's for our services. ( which include
labor and material ).

What we would like to know is how we can invoice a customer and only
charge the tax on labor.

We don't want to let the customer's see the breakdown so entering two
line items is out of the question.

How can this be done?

NOTE: We pay the tax on materials directly to our vendors so our
customers should not be charged the tax.

Thank you for your help.
 
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A

Allan Martin

Hello everyone,

I am in New Jersey and we have a 7% tax on Labor and don't charge tax
for Material.

At our company we charge Flat rate's for our services. ( which include
labor and material ).

What we would like to know is how we can invoice a customer and only
charge the tax on labor.

We don't want to let the customer's see the breakdown so entering two
line items is out of the question.

How can this be done?

NOTE: We pay the tax on materials directly to our vendors so our
customers should not be charged the tax.

Thank you for your help.

Well its a good thing you are located in NJ the people there are so stupid
they are not capable of extrapolating what the labor charge is based on the
sales tax charged. Nor are they capable of even knowing that it is possible
to extrapolate the charge. Nor are they smart enough to even know what
extrapolate is.
I should know, I'm married to a NJ school teacher. :)
 
J

jonpotzer

Allan said:
Well its a good thing you are located in NJ the people there are so stupid
they are not capable of extrapolating what the labor charge is based on the
sales tax charged. Nor are they capable of even knowing that it is possible
to extrapolate the charge. Nor are they smart enough to even know what
extrapolate is.
I should know, I'm married to a NJ school teacher. :)
This is important. If you could help that would be appreciated.
 
J

jonpotzer

Allan said:
I rest my case.
Okay everyone,

Please just disregard Allan Martin and his ability to be an ass. I
don't care about his incompetent wife and have an important question.

Back to the question at hand...

How can I create Flat Rate charge in QuickBooks ONLY taxing the Labor
and NOT taxing the material.

This is for a computer program we have created that has the ability to
break down the percentage of labor and material and only tax the labor.

We are able to do it in our program however when we export to
QuickBooks we have found no logical way to do this.

Once again, the goal is to not divolge the seperate material and labor
charges on the bill, having 1 line item with a flat rate and being able
to ONLY tax the labor.

We can calculate the tax in OUR program correctly and create a flat
rate, however there is no way we can send it to QuickBooks and have the
tax be correct due to the tax being included already in the flat rate.

Please help if you can, if your an jobless, idiot who has nothing
better to do all day but flame, see: Alan Martin.
 
A

Allan Martin

Okay everyone,

Please just disregard Allan Martin and his ability to be an ass. I
don't care about his incompetent wife and have an important question.

Back to the question at hand...

How can I create Flat Rate charge in QuickBooks ONLY taxing the Labor
and NOT taxing the material.

This is for a computer program we have created that has the ability to
break down the percentage of labor and material and only tax the labor.

We are able to do it in our program however when we export to
QuickBooks we have found no logical way to do this.

Once again, the goal is to not divolge the seperate material and labor
charges on the bill, having 1 line item with a flat rate and being able
to ONLY tax the labor.

We can calculate the tax in OUR program correctly and create a flat
rate, however there is no way we can send it to QuickBooks and have the
tax be correct due to the tax being included already in the flat rate.

Please help if you can, if your an jobless, idiot who has nothing
better to do all day but flame, see: Alan Martin.
That's Allan with two LLs not one. If you came here for a free lunch think
twice, Allan Martin is the price you must pay to feed in the public trough
 
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T

TKnTexas

Ok, to give you a serious answer, you might check with the NJ offices
of tax collection if you can do what you want. As an example, in
Texas, unless you show the breakdown you have to tax the total, or you
have to quote the flat amount as inclusive. The customer does not see
a tax on anything. The contract just reads as a price inclusive all
applicable taxes.

But you really need to check with the comptrollers office of NJ to see
if you can do what you want.
TK
 
A

Allan Martin

TKnTexas said:
Ok, to give you a serious answer, you might check with the NJ offices
of tax collection if you can do what you want. As an example, in
Texas, unless you show the breakdown you have to tax the total, or you
have to quote the flat amount as inclusive. The customer does not see
a tax on anything. The contract just reads as a price inclusive all
applicable taxes.

But you really need to check with the comptrollers office of NJ to see
if you can do what you want.
TK
In NJ the breakdown should be shown. If not then the customer could be in
deep shit if they are ever audited by the state. When the state comes in
they first and foremost are looking to access use-tax.
 
L

Lisa C

Hello everyone,

I am in New Jersey and we have a 7% tax on Labor and don't charge tax
for Material.

At our company we charge Flat rate's for our services. ( which include
labor and material ).

What we would like to know is how we can invoice a customer and only
charge the tax on labor.

We don't want to let the customer's see the breakdown so entering two
line items is out of the question.
Not only are two items NOT out of the question, two items are REQUIRED by
law if you want to avoid charging tax on the materials used.

Re-read the document "Contractors and New Jersey Taxes" at
http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su3.pdf

Please note where it states "If the contractor does not itemize the
materials and the labor for a taxable job, the entire receipt is subject to
tax."

Now, if you want that itemization invisible to the customer, you might try
using a group item for your flat-rate service. Within the group item you can
have two line items, the labor charge (taxable) and the materials charge
(non-taxable). There is a box to check that will determine whether or not
the customer sees the breakdown. You might want to check with your
accountant or with the state to determine if the tax would be on the total
if you choose to hide the breakdown for the customer.
 
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L

Lisa C

Allan Martin said:
In NJ the breakdown should be shown. If not then the customer could be in
deep shit if they are ever audited by the state. When the state comes in
they first and foremost are looking to access use-tax.
Yeppers. The state wants their tax due. If the tax collected is less than 7%
state tax rate, the customer is subject to a use tax. If the contractor
fails to collect the taxes properly, I suspect the state could and would go
after BOTH parties, so long as NJ gets its proper due.

My reply to the OP included this quote "If the contractor does not itemize
the materials and the labor for a taxable job, the entire receipt is subject
to tax.". This is taken directly from the NJ state website. Another quote
"There are two principles to remember when collecting sales tax:

1. Vendors hold any sales tax collected in trust for the State, and

2. All receipts are considered to be taxable until the contrary is
established."



I suspect that NOT listing the breakout of materials vs. labor on his
invoices could end up biting him in the end.
 

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