Set Up Tax Rates

Note: You will need to create SIM codes for each level of sales tax, such as state, country, local, that could apply.

Five levels of locality tax rates are as follows:

• State Tax %
• County Tax %
• City Tax %
• City Local Tax %
• County Local Tax %

If necessary, define codes to use as tax charges for specific locations that will not use the default Tax Rate library (for example, locations within states that apply tax rates according to unique tax rules for that location).

Note: If the default tax rate library will be applied to multiple locations, you should use generic tax SIM codes. For tax rate libraries that are defined at the location level, you can specify tax charges by state.

(Optional) If the practice wants to report on taxable items, create a department for the taxes in the Departments master list and apply it to the SIM.

Note: If this option is not selected for the payer, the system applies the tax rate at the encounter level as one summed line item.

Note: The Tax Rate library selected in the Location master file overrides the library selected in the Charge Entry practice preferences.