Tax Rates and Tax Classes
Simphony uses tax rates and tax classes to assign taxes to menu items, discounts, and service charges.
A tax rate is the percentage at which taxes are paid to a government. In some jurisdictions, multiple tax rates apply. Usually these tax rates must be calculated separately for accounting purposes (allowing each jurisdictional government to collect the appropriate tax amount).
A tax class is a collection of tax rates. Tax classes determine
the tax rates that apply to menu items and service charges, and which
tax rates can be reduced by discounts. Consider the following example: 2% City Tax Rate + 4% State Tax Rate = 6% Sales Tax (tax class which
contains two tax rates)
. In this example, both the city and
state tax rates are active for the Sales tax class. The total sales
tax is 6%. By grouping multiple tax rates into a single tax class,
you can view a record named Sales Tax.
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Order Type: Sometimes tax rates are applied differently for orders based on whether they are for dining in or for take-out.
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Menu Item Class: All menu item definitions in the menu item class are taxed using the tax class.
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Discount: When you assign a tax class to a discount, the taxes linked to the tax class are recalculated when the discount is applied using the reduced taxable sales value.
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Service Charge: Some types of service charges are taxed, such as banquet and room service transactions.
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Inclusive tax rate – 5%
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Add-on tax rate – 5%
Table 13-2 Example of Inclusive Tax with Multiple Revenue Centers
Revenue Center | Order Type Tax Configuration |
---|---|
Bar |
|
Restaurant |
|
Note:
A maximum of eight tax rates can be applied to any check (including merged checks). If the maximum number of tax rates are exceeded on a check, users are prompted on the POS workstation to adjust or remove those items applying differing tax rates to comply with the threshold limit. Examples of items which can apply unique tax rates to checks are:-
Order Types
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Menu Items
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Service Charges
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Discounts
Parent topic: Taxes