Massachusetts Sales Tax Changes Take Affect August 1, 2009

Mike Fitzgerald of The Fitzgerald Group just sent me this information about an upcoming change in Massachusetts sales tax. According to his notice the state is increasing the sales tax rate effective August 1, 2009.

Please consult with your tax advisor prior to making any changes.

Here are the instructions for those Massachusetts MAS 90 or MAS 200 users who need to update their sales tax rates for the upcoming changes.

Massachusetts sales tax is changing from 5% to 6.25% effective August 1, 2009. If you collect sales tax on Massachusetts sales (and do not use an add-on sales tax program) you must manually change the sales tax rate before starting August invoicing.

Follow these steps in order to update the MAS90 or MAS200 sales tax rate:

Before you begin:

* You’ll want to change the sales tax rate after all July invoicing is complete, and before printing August invoices.
* Make sure there are no users entering invoices or sales orders while you perform these steps.

Change the rate in the sales tax table:

* In Library Master/Setup/Sales Tax Code Maintenance, select your Massachusetts tax code.
* On the taxable line in the table, change the rate from 5.00 percent to 6.25 percent.
* Click Accept.

Update your in-process sales orders and/or invoices:

* In Accounts Receivable/Utilities, select Sales Tax Calculation.
* Make sure all the boxes are checked, and select “recalculate sales tax for all records.”
* Click Proceed.

If you track sales taxes in Accounts Payable/Purchase Order:

* In Accounts Payable/Utilities, select Sales Tax Calculation.
* Make sure all the boxes are checked, and select “recalculate sales tax for all records.”
* Click Proceed.

More information – The Fitzgerald Group – Sharon MA