QuickBooks Sales Tax Groups

Setting Up Tax Groups (from QuickBooks Online Help and Support):

 

About tax groups

Even though you may be charging your customers a combination of local taxes and a state tax, they're used to seeing only one sales tax line and rate on sales forms. A tax group lets you track each tax separately, yet show only the total sales tax on your sales forms.

How QuickBooks calculates the total tax

When you use a tax group on a sales form, QuickBooks calculates each tax individually, then adds the individual taxes together to get the total tax. Because QuickBooks rounds the individual tax amounts to the nearest cent, the total for tax group may be slightly different than the total you would get if you combined the rates of the individual taxes and applied the single rate to the sale. Don't worry about this discrepancy; QuickBooks calculates and reports each individual tax amount correctly.

 

Click here for more information on Setting Up QuickBooks Tax Items.