Configure multiple tax types and tax rates

Summary

Tax types are created to apply taxes to taxable menu items. Each enabled tax type has a tax rate.

Example:

Tax type = sales tax
Tax rate = 8.75%

By default, each taxable menu item is automatically configured with a sales tax. Additional tax types can be configured for a site and applied to any menu item as needed, e.g., liquor tax, city tax, etc.

Each tax type is configured with a tax rate.

Configuration

Configure a tax type

Pre-condition: The current user must have ECM permission to create/edit adjustments.

Configuration is done in four areas of ECM:

Financial - Create tax types (account level)
Site - Enable tax types; establish tax rates (site level)
Menus - Enable tax types per menu
Menu items - Enable taxes for specific menu items; set any tax exemptions (account level)

FINANCIAL - CREATE TAX TYPES (ACCOUNT LEVEL)

In the primary navigation, go to Financial > Tax Types
- Note: Sales tax is the default tax type. The name cannot be edited.

Add Tax Type

Click Add Tax Type
A new blank entry will be created. Enter the name of the new tax type
Click Save Changes to save or Cancel Changes to cancel
External code - leave blank unless needed for third-party integration

Edit Tax Type

Click the edit icon (pencil)
Edit the name or external code in the pop-up window

Alternate: Click in the name field or external code and field to edit

Click Save Changes to save or Cancel Changes to cancel

SITE - ENABLE TAX TYPES; ESTABLISH TAX RATES (SITE LEVEL)

Select a site

Select Tax Rates
Checkmark the taxes to be enabled for the selected site
Uncheck to disable a tax

To enter or edit a tax rate %, click in the field and enter changes
To enter or edit a display name, click in the field and enter changes

Save, Cancel or Apply the changes (Apply will save the changes and remain on the page; Save will save the changes and close the page)

MENUS

Go to Products > menus
Select a menu (pencil icon)
Select the taxes applicable to the selected menu and Save

MENU ITEMS - ENABLE TAXES FOR SPECIFIC MENU ITEMS (ACCOUNT LEVEL)

Go to Products > Menu items
Select a menu item (pencil icon)

Select Taxes tab
Checkmark the taxes to be enabled for the selected menu item
If a menu item is to be taxed for takeout, checkmark the box Taxed for Takeout?

Tax Exemptions
Taxes that were enabled for a site can be exempted for a menu item at the site level
- Select a site from the drop-down menu
- Select a tax to be exempted for this menu item at the selected site

Combos

Combo types that are configured to have a single combo price (prevailing single, reduced single) will display a Taxes tab, which will display the same taxes page as above.
Combo types that are configured to have a discount to each item in the combo (prevailing discount, reduced discount) will not display a Taxes tab, as their taxes are inherited from the child menu items and applied to the parent.

Save, Cancel or Apply the changes (Apply will save the changes and remain on the page; Save will save the changes and close the page)

Operation

Order a taxable menu item
The Payment screen will display the taxes that apply to the menu item