Program SPSX, Tax Rate Maintenance, is used to enter tax rates by zip codes. Tax rates can be set up for a single zip code or a range of zip codes. Multiple tax rates can be entered for a zip code, each with a different starting effectivity date. Tax value rounding is also maintainable in this program.
You must set up a tax code of ZIP in program SPTX, Tax Code Maintenance, in order for these tax rates to be used. When a ZIP tax code is entered on a record, it forces the programs calculating tax to look at the zip code and this program to determine the correct tax rate to be used.
1. In the Zip From field, enter the zip code for which you are defining the tax rate.
* You can define a tax rate for a range of zip codes. In which case, you would enter the first zip code in the range in this field.
2. If you are defining a tax rate for a range of zip codes, enter the last zip code in the range in the Zip To field. Otherwise, leave the field blank.
* If the first zip code in the range is 34652 and the last zip code in the range is 34655, the tax rate would be applied to 34652, 34653, 34654, and 34655.
3. Enter the Jurisdiction name. This is the name of the area for which you are entering tax rate information.
4. Select the desired Rounding Rule. You can select Standard, Up, or Down. The rounding rule is combined with the rounding rate to determine how the rate is rounded.
* Standard will round using standard rounding logic. If the last digit is 5 or greater, the tax rate will be rounded up. If the last digit is 4 or lower, the tax rate will be rounded down.
* Up will round up the tax rate. Anything other than an even divisor of the Rounding Base will be rounded up to the next even divisor of the value.
* Down will round down the tax rate. Anything other than an even divisor of the Rounding Base will be rounded down to the next even divisor of the value.
5. Enter the Rounding Base. This is the base number to which you are rounding the tax value.
* If you have the rate set up for Standard rounding, you would enter .01 in this field.
6. Enter the Value Limit. This is the greatest dollar amount to which this rate is applied. For example, if no tax is charged on amounts less than .10, you would enter .10 in this field and 0 in the Tax Rate %field.
7. Enter the Effective Date, if desired. This is the first date on which this rate is effective. In this way, you can enter multiple records for tax rates each with different starting dates.
8. Enter the Tax Rate %.
9. Press [Commit].
10. In the lower block, you can enter the components that make up this tax rate. The lower block is for reference only. The information entered in the upper block is the information that is used in computing taxes by zip code.