Tax rate change mid-year - Quickbooks Pro

[AndreaLC]

Hi there,

I'm trying to do the books for a client of mine from back in 2006!!!

Everything is going well except for the fact that we had a tax rate change that year.

Does anyone know how I can make that change? I keep getting an error message saying that I'm changing my defaults and shouldn't perform this action.

Does anyone know how I can fix this without pulling my hair out???

[SaraASB]

What tax rate? Payroll? If you are entering payroll, I would not try posting actual paychecks back to 2006. It is not designed for this and your payroll and W2s for past years should be a done deal. Can you enter the net paychecks to a clearing account and journal entries to allocate the gross and taxes per your payroll records?

[AndreaLC]

I need to change the federal tax rate - our GST went from 7% down to 6% in July of '06.

When I'm entering any receips for July, they want to keep using 7% as the rate. How do I change it without having it affect anything prior to July?

[Business-Bytes]

I know how to do this in PeachTree Accounting (even thought there can be a default rate, you can also set up other rates to use [it wouldn't affect the default rate by doing this]), but wasn't sure for QB. Hopefully this link will help: http://support.quickbooks.intuit.com..._tax_item.html

If the above link and links within that page don't help, you can do a search using the site's search feature at the top of the page.

HTH a bit,

[SaraASB]

Ohh!! The SALES tax rate.

Easy. Go to Lists.. ITEM LIST and set up a new sales tax rate. Put the % in the name so you know which one to use.

[pjerb]

I agree with Sara. Set up a new sales tax item with the new rate and use the new item for the older invoices. If you need any help, just let me know.