Selecting Tax Rates and Surcharges for a Service Code

Tax rates should be associated with the specific service codes that they apply. You can also add surcharges to a service code.

Note: A tax rate also must be associated with the client to be charged.

Tip: You can prevent surcharges from being applied to a particular client's past due invoice by clearing the Calculate Surcharges option on the Billing Options tab of the client profile.

To set up tax rates and service charges for a service code, do the following:

1. On the Service Codes grid, do one of the following to display the Service Code setup window:
   • Create a new service code. Select New on the button bar, or right-click the grid and select New > New Service Code.
   • Edit an existing service code. Select Edit on the button bar, or right-click a code in the grid and select Open > Open Service Code from the menu.
2. In the top section of the window, enter or edit the service code information as necessary. Explain the components of the window.

Component	Description
Category/Subcategory	Select or edit the category or category/subcategory that the service code is associated with.
Service Code ID	Enter or edit the service code ID. The ID must be unique.
Service Code name	Enter or edit the service code name.
Inactive	Select this box if the service code should no longer be available for use in time entry or projects.

3. Select the Tax/Surcharges tab.
4. In the Tax Rates section, select Include for each tax rate to apply to this service code, if any. The tax rates that are available here are the ones that were set up in the Tax Rates list.

Note: If you select a tax that was set up to be calculated on another tax, the other tax will be selected automatically and cannot be cleared.

5. In the Surcharge section, select the type of surcharge to apply to this service code, if any. Show me more information about this section.

Option	Description
No surcharge	This option is the default.
Hourly rate	Enter or edit the amount to be charged per hour in addition to the bill rate/amount.
Percentage of total	Enter or edit the percentage of the total WIP amount that should be charged in addition to the bill rate/amount.
Flat amount	Enter or edit the amount to be charged in addition to the bill rate/amount.

6. Click one of the Save buttons or Cancel. 

Button	Description
Save & New	Saves the changes and opens a new window to create a new entry. An error message displays if you click this button before entering all required information.
Save & Close	Saves the changes and exits the window. An error message displays if you click this button before entering all required information.
Cancel	Exits the window without saving your changes.