Managing Sales Tax is a crucial but often complex part of financial compliance for dental practices. CareStack simplifies this process by introducing location-specific controls for tax calculation and tracking.
Let's explore how to set up Sales Tax for your practice locations and how to apply it for treatments.
Topics Covered
- Set Up Sales Tax Controls for Practice Locations
- Apply Sales Tax to Treatment Codes
- Generate Sales Tax Codes for Treatments
Set Up Sales Tax Controls for Practice Locations
Watch this video for a comprehensive walkthrough.
To configure your practice's sales tax controls for each location, follow these steps:
- Navigate to the System Menu > select Practice Settings > Locations > All Locations.
Click View next to the intended location.
Click Edit on the bottom right of the resulting slide-out.
Under Sales Tax, enter the following details:
- Sales tax: Enter the percentage of sales tax to be applied to the location.
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Generate Sales Tax Code: Choose whether to generate a separate sales tax code, rather than including it as an adjustment. By default, this is set as No.
- To learn when to enable this setting, refer below.
- Once all changes are made, click Save.
Two toast notifications will appear on the top right, stating, 'Location Updated successfully' and 'Sales tax details saved successfully'.
Apply Sales Tax to Treatment Codes
Now that we have set sales tax controls at the location level, let's see how to apply it to codes.
Let's begin by enabling Sales Tax for Procedure Codes. To do this:
- Navigate to the System Menu > select Practice Settings > Codes > Procedure Codes.
- Click Edit next to the intended code.
On the resulting slide-out that appears,
- Set Apply Sales Tax as Yes.
- Click Save.
- A toast notification will appear on the top right stating, 'Procedure Code updated successfully'.
Sales Tax will now be added to the treatment’s fees as an adjustment, which can be viewed in the Treatment Planner.
Generate Sales Tax Codes for Treatments
Watch this video for a step-by-step explanation.
Practices in Hawaii and Minnesota can generate separate sales tax codes for easier insurance claim submissions.
To begin, follow the steps described under Set Up Sales Tax Controls for Practice Locations.
Under Sales Tax, enter the following details:
- Sales tax: Enter the amount of sales tax to be applied to the location.
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Generate Sales Tax Code: Select Yes to generate a separate sales tax code, rather than including it as an adjustment.
- The settings below will only be accessible when this setting is enabled.
- Code Status: Choose either Proposed or Completed as the status for the generated code.
- Sales Tax Code: Choose the sales tax code.
- Calculate sales tax against: Choose the fee that sales tax is to be calculated against.
- Once all changes are made, click Save.
Now, let’s generate sales tax codes. To do this,
- Search for the patient using the Global Search Bar.
- Click the Tx Plan (Treatment Planner) quick link.
On the Treatment Planner,
- Checkmark the intended treatment(s).
- Right-click on the selected treatment(s).
- Select Generate Sales Tax Code.
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Sales Tax Code(s) will now be added for each unique combination of Billing Order, Treating Dentist, and Location.
- The amount will be automatically calculated based on your practice's sales tax configuration.
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Example: 6 codes have been added to a patient's treatment plan, with different Billing Orders, Treating Dentists, and Locations, such as:
Then, Sales Tax codes will be generated 4 times for each of the unique combinations as shown below: This ensures the corresponding sales tax code gets linked to its respective procedure codes during claim submission. |
| Note: Generated Sales Tax Code(s) will be locked by default. |
- In case Sales Tax controls have not been configured for a location, a warning will appear stating, 'Sales tax codes cannot be generated for certain procedure codes because they are not configured in the location-level settings.'
- On clicking Proceed, Sales Tax codes will only be generated for codes added at configured locations.
Practices can utilize this article to accurately set up sales tax controls for all locations and efficiently apply sales tax to treatments in CareStack, ensuring financial compliance and minimizing manual billing errors.