Agencies can opt to apply taxes in Client invoices; however, it is not mandatory.

If an agency considers taxes on client invoices, there is a two-level hierarchy in place.

  • At Office Settings Level

  • At Client Profile Level

  • Log into the system as an Agency User, Owner, or Admin.

  • Click the Settings icon in the Main toolbar.

  • The Admin User determines which role the user is associated with.

  • Click the Billing button.

  • Make sure the Do you charge taxes on client invoices option is selected.

If an Agency chooses to apply tax calculation on the client invoices, then the Agency must choose Yes and the system will ask the user to enter in Tax Rate (%) data so that the system can charge per the percentage amount.

NOTE: Taxes will not be applied on the expenses entered in the schedule details. Taxes will be applicable on the Service amount only.

  • Click the Update button to save the setting, or the Cancel button to disregard the change.

If a Payer profile is configured with the Client profile which is only liable to pay specific dollar amounts ($) for the client, and the Client is coming under the invoice considerations, then payer will have to pay the specific amount plus taxes.

For example, if there are two payers for a client and the primary payer only pays $2500 per month, and the client is set to be considered for tax calculations, then the invoice charged to the primary payer would be $2500 plus taxes.

After Office Settings, the next level of hierarchy for the tax implementation is at the Client level. In each client profile, there is a checkbox labeled as Charge Tax.

This checkbox will only be available for the user to check, if the office has opted to consider taxes for the Client invoices mentioned above. If the office has opted for tax calculations, then only the Client profile can be opted for the tax calculations as well.

After this checkbox if selected and the Client profile is updated, then the next invoice created will have tax calculations applied to it. Previously-created invoices will have NO tax calculations on them.

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