This article shows you how to setup tax rates if your account is connected to QuickBooks Online. The following two conditions must be met before moving forward:

Once these two steps have been completed you can begin managing your tax rates in QuickBooks Online using the steps below.

Log into QuickBooks Online and click on "Taxes" in the left side navigation menu. You should see a screen similar to the one below. If you do not, then please review the prerequisites section before moving forward.

Once you are in the Tax section of QuickBooks Online, click on the Sales Tax Settings button in the top right of the screen.

From here, you can add your tax agencies for the various states, counties, municipalities and territories where you need to collect tax. Click "Add Agency" to create a tax agency.

When creating an agency, you will need to specify the territory, filing frequency, start date, and reporting method.

Once your tax agencies have been configured, you will need to create tax rates for each territory where you collect tax. Click "Add Rate" to create a tax rate.

When creating a tax rate you need to specify whether the tax rate is single or combined, then provide the name, associated agency, and tax rate.

Once your tax agencies and tax rates have been setup in QuickBooks Online, you will need to login to the Field Service Management product and sync with QuickBooks Online. To do that, go to Settings > Accounting, then expanding the click QuickBooks section, and then click on Synchronize to sync the tax agencies and tax rates you created.

Once the sync is complete, navigate to the taxes section to confirm that the taxes you setup in QuickBooks Online have successfully synced. You can do this by going to Settings > Accounting, then expanding the Taxes section and viewing the tax names and rates that have been populated.

Once your tax rates have been configured, you will need to setup tax zones. Tax zones associate a zip code with a tax rate. You can do this by going to Settings > Accounting, then expanding the Taxes Zones section.

To create a Tax Zone click on "Add New" then provide a Tax Zone name for the region, and assign the appropriate tax rate. You then need to indicate whether the tax zone collects tax for products and services. Once this is done, you need to assign zip codes to the tax zone.

You can then filter all the available zip codes for a territory in the filter section, then individually add a zip code by clicking on the "+" sign, or add all of the zip codes by clicking "Add All". Once you have specified all the zip codes for the specific zone you can click save.

Now that your tax agencies, tax rates, and tax zones have been setup, you need to make sure the following items are also configured properly in accordance with your local tax regulations.