Hi, Adjust the "Tax Rate" to be 80% of the rate. You can compute this relatively easily with a little algebra.
Let's say the tax rate is 5%, and you have $100 in billable labor. Only 80% of that is taxable, so 0.8*100 = $80. Then you take 5% of that, .05*80 = $4. In this example you could set up a tax table at 4%, which is 80% of 5%. More generally for your case, your effective tax rate is 0.8*target tax rate. -derek On Tue, March 27, 2018 6:28 pm, Matthew Pressly wrote: > Our state tax laws are such that most of the work that I do is > considered "data processing" of which 20% is exempt and 80% is taxable. > Is there a good way to configure GnuCash to handle that when making an > invoice? > > I've thought of several approaches, but none seem very satisfactory: > > * Make one line item in the invoice that reflects 80% of the labor > cost and mark that as taxable, then enter a separate line item for > the remaining 20%, so that every invoice has 2 line items. The > problem with this approach is that the line items no longer reflect > what was done (a description of the work completed) but rather are > used mainly to separate the taxable and non-taxable charges. > * Similar to above, I could just duplicate every line item (so if > there were 5 items, there would become 10) to make a taxable and > non-taxable line item for each piece of work completed. But that > seems cumbersome and would likely be confusing to clients. > * Another approach could be to set the tax rate to 80% of the actual > tax rate. > > Do you have any other suggestions about how to approach this? > > I've searched quite a bit for an answer for this question (both in > GnuCash and with other, separate invoicing products) but haven't been > able to find anything conclusive. > > What I'm currently doing is using a spreadsheet template for invoicing. > I've added separate columns for the 80% taxable and 20% non-taxable > breakdown of each item, then compute tax accordingly. This works, but it > is cumbersome. > > > -- > Matthew > > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > If you are using Nabble or Gmane, please see > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > -- Derek Atkins 617-623-3745 de...@ihtfp.com www.ihtfp.com Computer and Internet Security Consultant _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
