Understanding Commission Tax in ACE

What Is Commission Tax in ACE?

The Commission Tax feature in ACE allows collection companies to calculate and reflect the sales tax owed on the commissions they receive. There are two types of commission rates available: static and conditional.

• Static rates can be set up to apply to all payments taken on accounts for a specific client.

• Conditional rates can be set up based on the state or province associated with the primary demographic address on accounts.

You can configure two commission tax rates per client, allowing you to manage scenarios where multiple taxes apply (e.g., federal and provincial taxes).

Create a Static Commission Rate

Static Tax Rate: Applies a fixed tax rate to all payments taken on accounts for a specific client.

1. Go to Clients → Commission Tax, New

2. Enter basic details

   1. Label: Enter a descriptive name for the commission tax rate.

   2. Identifier: Enter a unique identifier for this tax rate.

   3. Type: Select Static

   4. Tax Percentage: Enter Percentage

3. Save

Create a Conditional Commission Tax Rate

This setup allows you to apply different tax rates based on location, either for the client's address or the consumer’s primary demographic address.

1. Go to Clients → Commission Tax, then click New.

2. Enter Basic Details:

   1. Label: Enter a descriptive name for the commission tax rate.

   2. Identifier: Enter a unique identifier for this tax rate.

   3. Type: Select Conditional Rate.

3. Click Apply.

4. In the Commission Tax Rate Logic section, click New:

5. Specify Conditions

   1. State/Province: Select the relevant state or province for which this tax rate will apply.

   2. Rate: Enter the tax percentage for this state/province.

   3. Consumer Based: Check this box if the tax rate should apply based on the consumer’s account address (primary demographic) rather than the client's address.

   4. Save the Conditional Rate

6. Click Save to apply the tax rate logic for this conditional commission tax rate.

Set the Commission Tax per Client Profile

1. Open the Client Profile.

2. Locate the Preferences section.

3. Select the Commission Tax Rate(s):

   1. Choose the appropriate tax rate from the dropdown for Commission Tax Rate 1.

   2. If needed, select an additional rate from the Commission Tax Rate 2 dropdown.

4. Click Save.

Note:

• If you only need to apply one Commission Tax Rate, use the Commission Tax Rate 1 field.

• You can leave the Commission Tax Rate 2 field blank if a second rate is not required.

Modify Invoice Profiles as Needed

Ensure your invoice profiles are updated to reflect the commission tax rates appropriately. This ensures that invoices sent to clients accurately display the tax amounts.