In this article, you will learn how to set and manage your tax rates in Workiz. 

Your service business may operate in multiple cities or counties in your area. That may result in providing services in areas with multiple tax rates, which could complicate the way you do business.

Workiz makes it easy to resolve this potential issue by allowing you to set and manage all the tax rates your business typically encounters, and even setting a default rate for your business to use in jobs and invoices.

Creating a new tax rate

1. From the navigation bar, select the profile icon > Settings
2. Under Job Settings, select Taxes
   
3. From the Taxes settings page, select Add New
4. Create your tax rate:
   
   1. Name: Enter a name for this tax area
   2. Tax rate %: Enter the tax rate percentage for this tax area
   3. Default tax rate: Choose whether this is your default tax rate
   4. Select Save

Creating grouped tax rates

Workiz also allows you to create grouped tax rates, a convenient solution for businesses that operate in Canada, where multiple tax rates must be combined and applied to transactions. This ensures compliance with local tax regulations and simplifies the billing process. 

1. From the Taxes settings page, select Add new
2. Enter a name for your grouped tax rate
3. Next to Is this a grouped tax rate?, turn the toggle switch on
   
4. Select all of the sub-tax rates you want to include in this group
   

   Sub-tax rates must already exist as individual tax rates in order to be added to a group.

5. Select Save

When creating grouped tax rates in Workiz, please be aware that:

• The tax rate percentage for a grouped tax rate will automatically be calculated based on the individual sub-tax rates that exist within the group. 
• If you are syncing to QuickBooks Online, you must create an identical individual tax rate in QuickBooks that represents the Workiz tax rate at the group level. This means your QuickBooks tax rate must have the same name and same total rate (percentage) as the group in Workiz.
• The Tax report in Workiz will only display taxes as they were collected at the sub-tax level

Disabling a tax rate

The Taxes page will also allow you to disable tax rates that are no longer relevant to your business. To disable a tax rate, turn the toggle switch under Status to OFF for the corresponding tax rate.

Any tax rates you turn off will be removed from your list of active tax rates. To view previously disabled tax rates, select the dropdown menu under Show and choose Disabled.

Assigning tax rates to service areas

When creating a service area in Workiz, you can assign a tax rate so that your jobs, estimates, and invoices automatically receive the correct tax rate based on the service address.

To learn more about creating service areas, please see this article.

Viewing tax rates on jobs, estimates, and invoices

Your new default tax rate will be applied to all future jobs, estimates, and invoices you create in Workiz. You can also manually update the tax rate for existing jobs and invoices.

The tax rate will be displayed in the summary section on the right side of the page.