NJ Sales Tax Decrease – QuickBooks Instructions
Effective January 1, 2017, New Jersey sales tax will decrease from 7% to 6.875%. Although this is not a drastic decrease, if you collect sales tax in New Jersey you will need to make some changes to your QuickBooks accounting system. We want to make sure all of our clients are aware of this change and are prepared to process sales transactions properly as of January 1, 2017.
Please note that these instructions and screen shots are specific to QuickBooks Enterprise version. If you have Pro, Premier, or Online, the process might vary slightly. Please call us for additional information if you are unsure as to how to proceed or have additional questions. 973-808-9040
- From the List menu, click Item List.
- Click on Item in lower left, then click New.
- Create a new Sales Tax Item type.
- Enter Sales Tax Name as NJ6.875 (or something similar). Enter a Description such as “Sales Tax – NJ 6.875%” and enter the Tax Rate (%) of 6.875%. Also, select the Tax Agency vendor from the pull down, which should be the same Tax Agency used previously for Sales Tax remittance.
- Click OK
- Now that you have created the new Sales Tax Item for 6.875%, you must manually update all open Sales Orders with New Jersey shipping addresses as of 1/1/17. To update the Sales Tax Item, open a sales order and click on the down arrow in the Tax field and select the NJ6.875 Sales Tax Item. Then click Save & Close.
- Please note – if you have a default Tax Item setup under each Customer’s Sales Tax Settings, this should be changed to the new Sales Tax Item.