Why are invoices generated by Autotask with PA sales tax and transferring to QBO now showing "Autotask Proxy 1%" as the sales tax setting on the invoices?

Hello there, Lueannc.

QuickBooks Online (QBO) has an Automated Sales Tax feature that helps businesses follow state and local sales tax laws. When you import invoices from software like Autotask, QBO aims to match the sales tax details. If there’s a mismatch—such as when the 6% Pennsylvania sales tax doesn’t align with QBO's settings—QBO will create a placeholder tax rate called "Autotask Proxy 1%" to manage the imported data effectively.

This issue might occur if the tax settings between Autotask and QBO are not fully aligned. To resolve this:

1. Review Tax Settings in QBO. Check if there's a custom tax rate named Autotask Proxy 1% in QBO. If it exists, you may need to adjust it or remove duplicates to ensure that the correct 6% PA sales tax is applied to invoices.
2. Verify Tax Settings in Autotask. Double-check that the sales tax rates in Autotask are set up correctly and match the setup in QBO.

Before making any adjustments to the settings, it is advisable to consult your accountant or tax advisor. They can assist you in managing your sales tax settings accurately in both Autotask and QBO.

If you have other questions and concerns, feel free to comment them below.