How to handle tax rate changes

Local, state, and federal tax rates may change and/or new ones may be implemented. To ensure that you're collecting proper tax amounts, you'll need to make these changes in aACE manually when a new tax rate takes effect. It’s best to deactivate the current tax profile and create a new one. To do so, follow these steps to prepare for the new tax rate and update your aACE solution once it takes effect.

Before the new tax rate takes effect:

  1. Navigate to Accounting > Tax Profiles, and choose the relevant profile. Click “Edit.”
  2. Change the “End Date” to the last day that the current tax rate will be in effect. For instance, if the new tax takes effect on January 1, 2015, you would change the “End Date” on that tax profile to December 31, 2014. This will trigger a notification on that date to let you know that the tax profile is expiring and will need to be updated. Note that the "End Date" does not automatically update the tax profile; it simply reminds you that this process needs to be done manually.

    End_Date.png

  3. Change the profile’s code to make it clear that this profile is out of date, e.g. “x-NJ” or “NJ2014”. This will allow you to reuse the same code for the new tax profile.
    Code.png
  4. Select “Duplicate Tax Profile” from the Actions menu, then click “Duplicate” in the dialog box.
    Duplicate.png
  5. Change the “Name” and “Code” fields to match the original tax profile. Set the start date for the day the tax rate goes into effect. In this example, that’s January 1, 2015.
    New_Tax_Profile_Info.png
  6. Update the Default Rates section to match the new tax rates.
    Default_Rates.png
  7. When you receive the notice set up in step 2, complete the steps below.

After the new tax rate has taken effect:

  1. Navigate to Accounting > Tax Profiles, and choose the old tax profile. Click “Edit.”
  2. If you have not done so in advance, complete steps 3-6 above.
  3. Deactivate the old tax profile. In the process, it will prompt you to update the related Company records. Reassign them to the new tax profile.
    Deactivate.png

See also:

How to enter a tax profile?

How to link a tax profile to a company record

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