Can I change our labor charges to nontaxable?

.Hi there, jtrofholz1

Once you check the Taxable box it will charge sales tax to the product that is exempted. In your case, make sure to set up the product that is exempted as a Non-Taxable in the Product/Service menu. This way, it doesn't add any taxes when you create a transaction. Let me show you how.

1. Log in to QuickBooks Online.
2. At the left menu, click Sales and select Product and Services. 
3. Locate the item and click Edit under the ACTION column.
4. Scroll down to the Product/Service information screen. Select Nontaxable under the Sales Tax category field.
5. Click Save and close. 

Changes to the item's information will only affect future transactions. You can do the same process when creating new products. 

For more details on managing your sales tax and how we calculate it, you can check out this article: Set up and use automated sales tax in QuickBooks Online.

In case you want to review the details of your non-taxable sales, you can check out this article for more details about the process, you can check out this article:  Create a Non-Taxable Sales Report in QuickBooks Online.

Stay in touch with us if you have other questions. I'd be glad to answer them for you. Have a good day!