October 20, 2019 Jason Peter Brown No comments

The reward of energy, enterprise and thrift…

…is taxes! Now FIVE has the flexibility to handle multiple tax rates, making it easier to accurately administer construction contracts with complex tax requirements.

There are 4 tax types available to be configured and assigned to any contract or order item:

  1. Default Tax – this is the standard tax % that has always been available for use in FIVE, typically GST, HST, or VAT tax %.
  2. Alternate Tax #1 – this is a new user definable tax percentage.
  3. Alternate Tax #2 – this is another new user definable tax percentage.
  4. None – this is for use with contract items where tax is inapplicable.

The two new alternate tax types can be used for items that are partially exempt from the full default tax rate, and/or for items that have a higher than default tax rate as dictated by the tax codes that govern the project. For work items where tax is not applicable, you can assign the None tax type.

Configuring Tax Percentages

To configure the tax percentages for your project:

  1. Click the project homepage tab.
  2. Click the Details button.
  3. Click the Properties button.
  4. On the properties page, click the Amounts tab.
  5. To define the default tax percentage, type the percentage into the Default Tax % box.
  6. To define a percentage for alternate tax #1, select the Alternate Tax % #1 option, and then type the tax percentage in the box.
    To define a percentage for alternate tax #2, select the Alternate Tax % #2 option, and then type the tax percentage in the box.
It’s as easy as 1, 2, 3, 4, 5, 6!

Once the tax percentages have been configured, they will be available for selection on the Contracts and Orders tabs.

Selecting Tax Types for Items

To select a tax type for Contract items:

  1. Click the Contracts tab.
  2. If your report doesn’t have a Tax Type column, right-click any column header then click Add a new column to this report. In the Search for columns box type tax type, then select the Tax Type column from the column list and click the Add button.
  3. For each contract item that requires a tax type other than the Default type, select the appropriate tax type from the list in the Tax Type cell.

Select a tax rate for each work item.

To select a tax type for Order items:

  1. Click the Orders tab.
  2. If your report doesn’t have a Tax Type column, right-click any column header then click Add a new column to this report. In the Search for columns box type tax type, then select the Tax Type column from the column list and click the Add button.
  3. For each contract item that requires a tax type other than the Default type, select the appropriate tax type from the list in the Tax Type cell.

Issuing a Certificate for Projects with Multiple Tax Types

Issuing a certificate for projects with multiple tax types can require a few extra considerations and possible changes to your workflow:

  • When releasing holdback, you can release separate amounts for each tax type.
  • When adjusting the holdback calculations (for example to add or subtract a penny), you can do this for each tax type.
  • When adjusting the tax calculations (for example to add or subtract a penny), you can do this for each tax type.
  • When retaining funds, you can retain separate amounts for each tax type.

Your Certificates report may need to be modified to show the relevant fields for each tax type for holdback release, retainage, and adjustments described above.

Any Questions?

Contact StatsLog Support at support@statslog.com or 1-800-266-4068 for assistance.

Jason has been a StatsLogger since 1998, when he first cut his teeth on the transition from StatsLog 3.0 to StatsLog4. Today he builds and hones the FIVE system based on his experience and the invaluable feedback of longtime customers.

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