When we do new construction for clients we are supposed to charge sales tax on materials but not on labor. It is difficult to separate out labor from material, especially when we sub out work. Our accountant has said we can charge sales tax on 45% (or 55%?) of each line item... Can I do this with quickbooks?
Line Item 1 $100 tax Line Item 2 $500 tax Line Item 3 $250 non-tax Sub-total: $850 Taxable items: $600
45% of taxable items (materials): $270 Sales tax (on $270): $22.28 Total: $872.28Is there any way I can do this automatically with QB? Maybe to have a new code, Tax, Non and 45% (new)?
Thanks in advance.