Disclaimer: You are responsible for determining exactly how the tax laws affect your payroll. Please consult your accountant and the IRS Web site.
Sales tax rates vary not only from state to state, or city to city, but even within a zip code or city limits. The challenge is to keep up with local sales tax district rates for your nationwide customers' many remote locations. By default in DDMS, if you needed to change a tax rate, you had to create dozens of new tax districts and mass change your customers just to ensure your history would retain the original tax amount while new tickets reflect the new rates. Switching to the Address Taxability module allows you to more easily update tax tables on a regular basis. You can set up each tax authority (state, county, city, zip+4) with its own easy-to-maintain rate. You can set up individual items to be taxed correctly where they are only taxable in a specific jurisdiction. Item taxability is no longer tied to the general ledger department or item SIC code — eliminating double-use of these fields, and freeing you to use item departments and SIC codes for other purposes.
If you wish to switch the SQL tables to maintain Address Taxability, it will require authorization with no additional charge from ECi DDMS Support.
With the CCH Taxing feature, you can use just the right tax rate according to your customer's tax jurisdiction. The CCH Taxing Service provides you greater flexibility of maintaining tax information for customers nationwide — without having to do the state-by-state research yourself. You can subscribe to services from CCH Group (cchgroup.com), to update your DDMS Server's tax tables on a periodic or monthly basis. The CCH Taxing feature allows you to set up individual items so that they can be taxed correctly by category, within each tax jurisdiction.
If you wish to automatically populate address-specific tax tables using CCH Tax Import subscription — instead of creating your own — please contact ECi Sales.
Learn how to link the tax district to a customer’s shipping address, using fields in the (AX) Customer Attentions screen and the Customer Shipto/Attention Tab.
As regional sales tax changes take effect on a frequent basis, ECi DDMS Support oftne receives questions about DDMS tax districts. There is one important thing to remember: If your state sales tax rate changes, or if the rate changes for a particular tax district, you must create a new tax district on your system. This condition applies if you are not using CCH Taxing or Address Taxability.
If your tax rates change, create a new district using these instructions
Learn to use three new tax enhancements: tiered sales tax districts, nesting combined tax districts, and tax rates that vary by category. We created these enhancements to cover the new Tennessee tax laws, but they can be useful to dealers in other areas as well.
Canadian dealers will learn how to set their system to calculate GST, PST, and HST taxes, and which invoice formats and reports include these taxes.
ECi sends an email when the U.S. Federal tax tables for payroll are completed and published. However, you are responsible for researching your own state taxes and determining how the tax laws affect your payroll.
You can find the U.S. federal tax tables at www.irs.gov