Configuring taxes on engagements
Taxes are government-mandated charges calculated on top of worker bill rate amounts. In Beeline Professional, taxes are configured at the engagement level and are calculated automatically when a worker submits their timesheet.
For information on how different amounts are rounded, see About rounding.
Our recommendation on tax management
Professional supports tax configuration on engagements, but we recommend that suppliers remain responsible for accurate tax calculations. Staffing suppliers are typically well-versed in the tax obligations associated with the contingent workers they place, including any jurisdiction-specific requirements. This is consistent with standard industry practice where tax compliance is part of the service a supplier provides to their clients.
Some organizations choose to manage taxes directly within Professional at the engagement level. This can work well when tax rates are stable and worker locations do not change. However, there are important limitations to be aware of.
Tax rates are defined on the engagement and are not updated automatically. Professional does not include a tax service or tax rate table. If a worker’s location changes and a different tax rate applies, the engagement tax rate must be updated manually to reflect the correct rate.
If your program includes workers who move between locations or jurisdictions, we recommend making suppliers responsible for identifying and flagging any tax rate discrepancies when invoices run, rather than relying solely on the engagement-level configuration to reflect the correct rate.
| We recommend consulting with your finance or legal team to ensure tax configuration aligns with your organization’s compliance obligations and applicable jurisdictional requirements. |
How taxes work in Professional
Configuring taxes in Professional is performed in two steps:
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Settings: An administrator defines the tax rate, including the rate name, calculation method (static or formula), and invoice mapping (set to Tax). This creates a reusable tax available across engagements.
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Engagement: A Program Office Administrator (PMO) selects the tax from the pre-configured list and defines the amount or multiplier for that specific engagement. The formula defined in Settings can be overridden at the engagement level if needed.
Taxes can also be defaulted automatically based on your organization’s business rules during the onboarding process.
Configuring taxes in Settings
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Before applying a tax can to an engagement, you must define it first in .
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When defining tax in Settings, configure the following:
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Rate name: A descriptive name for the tax as it will appear on timesheets and invoices. For example, "Tax - Reg Time" or "Tax - OT". Rate names are freeform and defined by your organization.
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Rate Default View: Select how the tax is calculated:
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Static: A fixed amount per hour, day, or month
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Formula: A multiplier of another rate, such as 0.07 x bill rate (7%)
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Rate Invoice Mapping: Select Tax to designate this rate as a tax. This determines how the rate is categorized on the timesheet and invoice.
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Applying taxes to engagements
Once you define tax in Settings, you can apply it to an engagement in the Engagement Rates section.
When applying a tax to an engagement:
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Select the tax from the pre-configured list.
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Define the amount or multiplier for that engagement. For example, a tax defined as a formula in settings may default to 0.07 x bill rate (7%) but can be adjusted for a specific engagement, if needed.
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Ensure that taxes are always configured as positive values. Unlike fees, which can be negative in supplier-funded programs, taxes represent a legal obligation and should always be additive regardless of your program’s funding model.
Taxes and rate types
Professional does not apply a single global tax across all rate types. If taxes are required, a corresponding tax must be configured for each rate and fee type on the engagement. For example:
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Tax: Reg Time = 0.07 x bill rate (7%)
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Tax: overtime = 0.07 x overtime (7%)
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Tax: double time = 0.07 x double time (7%)
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Tax: MSP Fee = 0.07 x MSP Fee (7%)
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Tax: MSP Fee overtime = 0.07 x MSP Fee - overtime (7%)
This ensures taxes are calculated correctly across all time and fee types submitted on a timesheet.