Including tax costs in 9-5 Takeoffs

Note: This functionality is available only if you have the Estimating Module.

In the 9-5 Takeoffs window, you can use the Insurance, Tax and Bonding tab when you need to include a charge in the final bid amount where the charge is based on the sales price while also being a component of the sales price. When you supply the percentage of the contract subject to taxation and the tax rate, Sage 100 Contractor computes the taxes and automatically adds them to the bid total.

Suppose your state charges a 10% use tax. On a $100,000 contract, the tax is $10,000. Because the use tax is part of the bid amount and not an addition to the bid amount, you need to also charge an additional 10% on the $10,000 tax resulting in a tax of $11,111.11. So the total bid amount becomes $111,111.11.

Caution! Do not use the Insurance, Tax and Bonding tab if your state requires you to add a tax on top of the contract price. Refer to your state tax code for more information.

Also consider the following points:

Liability insurance is usually considered to be overhead. However, you can include it in the budget. Select the Include in budget checkbox.
If you have entries in text boxes that are consistent, you can set up defaults to make the entry more automatic.

To include tax costs in the final bid amount:

In 9-5 Takeoffs, click the Insurance, Tax and Bonding tab.
Under Use Tax, do the following:
In the Subject text box, enter the percentage of the contract that is subject to tax.
In the Rate text box, enter the percentage rate at which you calculate the tax. Using this rate, Sage 100 Contractor computes the total tax for the takeoff.
In the Cost Code text box, enter the cost code number to which you want to assign the tax.
In the Cost Type list, click the cost type to which you want to assign the tax.
In the Bid Item list, click the bid item to which you want to assign the tax.
In the Phase list, click the phase to which you want to assign the tax.