Configuring Tax Rates and Classes

  1. In the EMC, select the Enterprise, property, or zone, click Setup and Tax Rates.
  2. Locate the appropriate tax rate. There are up to 64 active tax rates.
  3. In the Type field, select the tax rate type from the drop-down list. The following table describes the tax types:

    Table 6-6 Tax Types

    Type Description

    0 - Disabled Tax Rate

    Select this option if you do not want to use the tax calculation for the tax rate.

    1 - Add On, Breakpoint

    Select this option to calculate the add-on tax using the Breakpoint method, and add the tax to the check total.

    The government imposing the tax provides a breakpoint chart to facilitate programming the breakpoint entry.

    2 - Add On, Percentage

    Select this option to calculate the add-on tax using the Flat Percentage Rate, and add the tax to the check total.

    3 - Included, Percentage

    Select this option to calculate the inclusive tax using the Flat Percentage Rate to determine what portion of the sales price is the tax. The inclusive tax applies differently depending on the global tax type (European or United States).

    Because the tax is included in the price, the tax is backed out of gross sales on reports. You cannot back out inclusive tax from a check total using an Exempt Tax function key.

    4 - Florida Surcharge

    Select this option to calculate surcharges for menu items in Florida.

  4. Click Save.
  5. Select the Enterprise, property, or zone, click Setup and Tax Classes.
  6. Insert a tax class record with the appropriate name (for example, Food Tax or Liquor Tax).
  7. In the Taxes Enabled field, select the applicable tax rates and click OK. The tax rates you select are active for the tax class.
  8. Click Save.