Taxes. One of the only things that’s guaranteed in life. Setting up Sales tax is important to ensure that you have the proper information applying to your invoices. In this article we’ll go over the steps on how to set the sales tax up!
First, you’ll want to go to the locations page under the admin section:
Second, you’ll want to select your location:
Third, you’ll want to select the Sales Tax tab:
On this page you’ll want to enter in the default rate for parts and labor. If they’re the same you can match them, but if not you can enter in different rates.
Not all zip codes have the same tax rate however, so for those you’ll need to add additional zip codes to the box in the bottom left corner. The yellow circle will create a field for zip codes to be input, with two boxes for Parts and Labor rates. You can also drag and drop or click in the box at the bottom and upload a .CSV file to Omega to automatically import those in.
Sample CSV: SalesTaxHeaders.csv
When a shared ZIP code is used, tax mapping may attribute the origin to the larger city associated with that ZIP. Reporting will reflect the larger city, even if your business is in the smaller city. No action is required if the tax rate is correct.
Once you’ve entered in your sales tax rates hit the save button at the bottom and that’s all done for you! We hope this article has been helpful!
Managing Taxable Items
If tax is not showing on a quote, the item may not be marked as taxable. To resolve this:
Select the item in the job (check the box to the left of the item).
Open the menu that appears and enable the “Taxable” option.
For future jobs, go to the Items page, edit the item, and check the “Taxable” box to make it taxable by default.
To prevent labor from being taxed:
Go to Admin > Items (Catalog).
Open the labor catalog item (e.g., “NAGS labor”).
Uncheck the "Taxable" box and save your changes.
For current jobs, toggle the taxable setting off for the labor line item within the job.
Integrating with Tax Programs
Omega EDI can automatically update sales tax rates if integrated with a tax program like Avalara or TaxJar. Without such integration, tax rates must be updated manually. TaxJar calculates sales tax based on the location ZIP code during quoting. Once an appointment is scheduled, the system recalculates the tax using the appointment’s service ZIP code, which may change the rate.
Troubleshooting Common Tax Issues
Tax not showing on quotes: Ensure the item is marked as taxable.
Labor showing as taxed: Uncheck the taxable flag for labor items.
Incorrect city in shared ZIP codes: Verify the tax rate is correct; no further action is needed.