How do I calculate sales tax on a rate?
The sales tax is a tax levied on the sale of goods and services; usually calculated as a percentage of the purchase price. To calculate sales tax on a rate, add the sales tax as a percentage to the rate.
Usage x Rate Level x Sales Tax = Calculated Amount
Calculating sales tax on a rate
1. Open Connect Utility Management > Organization > Rates.
2. Use the Sales Tax box to enter the sales tax as a percentage.
Example: 0.03 is a 3% sales tax.
Linking sales tax to a rate vs. setting up a rate for sales tax
If the sales tax rate will be the same rate for multiple services and rates, then you can set up a sales tax rate that bill sales tax. The rate will calculate sales tax. You can add the rate to the service that will be taxed instead of instead of adding the sales tax to each individual rate.
Example: Using sales tax box on a rate
In this example, the rate includes the sales tax and the rate is assigned to a service. See the above image.
Calculated Amount = Service Usage x Rate
Example: Using sales tax rate with a rate
This example uses a rate, a rate that calculates sales tax, and a service. The rate is assigned to a service. A service for sales tax is set up and then the sales tax rate is linked to the sales tax service.
Calculated Amount = Service Usage x Rate x Sales Tax Rate
Rates, Service is linked to Sales Tax service
When you calculate automatic billings, the sales tax service is included with the services that can be included in the calculation.
Calculate Automatic Billings, Services box - Sales Tax
202205, 2022Jun29
Copyright © 2025 Caselle, Incorporated. All rights reserved.
Related Articles
Error: Distribution code allows sales tax
Issue I'm trying to change the interface but a warning message pops up every time I try to select a different interface type. Why? Explanation The warning message displays on the screen when a user changes the interface and a distribution is set up ...Error: Distribution code allows sales tax
Issue I'm trying to change the interface but a warning message pops up every time I try to select a different interface type. Why? Explanation The warning message displays on the screen when a user changes the interface and a distribution is set up ...How do I add a rate?
Organization use rates to calculate a billed amount for electricity, water, sewer, and other services that bill based on the amount used by a customer. The rate allows you to customize how the billed amount is calculated and define what happens when ...How do I calculate tax on a distribution? (2024.05)
Tax is an additional amount imposed by the government on the sale of goods and services. It is usually calculated as a percentage of the purchase price and collected by the city at the point of sale. The city remits the collected tax to the ...7b. Update new federal and state tax rates
IMPORTANT DO NOT load the new tax rate information until AFTER the payroll year is closed. The new Federal and State tax rates are available to download. What are the new federal and state tax rates? Payroll uses the federal and state tax tables to ...