Difference between revisions of "Sales Tax"

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Sales Tax
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=='''Sales Tax Basics'''==
  
In order for RTS to calculate your tax accurately for your state, we use the tax bracket to assure Rts is rounding properly.
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In order for RTS to calculate your tax accurately for your state, we use the tax bracket to assure RTS is rounding properly.
  
 
The alternative to this is either using the gross price and calculating the tax separately or we add a tax rate into RTS without the bracket. If you decide to go this route, your calculated tax may not be as accurate to what your city/state requires.
 
The alternative to this is either using the gross price and calculating the tax separately or we add a tax rate into RTS without the bracket. If you decide to go this route, your calculated tax may not be as accurate to what your city/state requires.
  
We have a tax report in RTS that will calculate your tax based on your total sales after the shift is closed. This is available under <code>Reports -> Deposit -> Tax by Subtotal</code>. Your tax rate can be configured from that window to be used for the calculation on the report.
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We have a tax report in RTS that will calculate your tax based on your total sales after the shift is closed. This is available under <code>'''Reports -> Deposit -> Tax by Subtotal'''</code>. Your tax rate can be configured from that window to be used for the calculation on the report.
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[[File:Config.SalesTax.JPG|150px]]<br/><br/>
  
 
We suggest using the tax report to get your tax due when you actually need the information. Using the tax table in RTS will calculate your tax during the transaction but will also result in transaction totals to sometimes not round to the nearest quarter. This will require you to keep pennies in your drawer and can cause a slight increase in your transaction times.
 
We suggest using the tax report to get your tax due when you actually need the information. Using the tax table in RTS will calculate your tax during the transaction but will also result in transaction totals to sometimes not round to the nearest quarter. This will require you to keep pennies in your drawer and can cause a slight increase in your transaction times.
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Tickets and Concession sales taxes are calculated differently.
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=='''Tickets and Concession Sales Tax Calculations'''==
  
'''Tickets'''
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===='''Tickets'''====
  
 
Sales tax is specified for each ticket type.
 
Sales tax is specified for each ticket type.
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This allows tickets to display the price and tax when printed.
 
This allows tickets to display the price and tax when printed.
  
'''Concession'''
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===='''Concession'''====
  
 
Concession is more complicated unless your are including sales tax in the customer's price.
 
Concession is more complicated unless your are including sales tax in the customer's price.
Each state has a 'tax table' that determines how to round sales tax in each transaction.  Calculating the tax per item is not valid.
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Each state has a "''tax table''" that determines how to round sales tax in each transaction.  Calculating the tax per item is not valid.
  
 
Let's look at an example.
 
Let's look at an example.
At the time of writing the WA 8.4% tax table specifies a tax of
 
 
.50 between 5.90 and 6.01 of taxable sales
 
 
1.01 between 11.97 and 12.08 of taxable sales
 
 
Let's assume a drink is priced at $6.00.
 
 
When purchasing 1 drink the customer would pay 6.50 (6.00 price + .50 tax)
 
  
When purchasing 2 drinks the customer would pay 13.01 (12.00 price + 1.01 tax)
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At the time of writing the WA 8.4% tax table specifies a tax of.50 between 5.90 and 6.01 of taxable sales 1.01 between 11.97 and 12.08 of taxable sales. Let's assume a drink is priced at $6.00. When purchasing 1 drink the customer would pay 6.50 (6.00 price + .50 tax). When purchasing 2 drinks the customer would pay 13.01 (12.00 price + 1.01 tax). The second transaction will result in pennies in your cash drawer. This isn't a problem with WA, every state with sales tax will experience pennies in the drawer.
  
The second transaction will result in pennies in your cash drawer.  This isn't a problem with WA, every state with sales tax will experience pennies in the drawer.
 
  
Yes, there is a exception to this.
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'''Yes, there is an exception to this.'''
If your state has a 10% sales tax, you only sell items priced in even dollars, and the sales tax rounding rules are consistent.
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''If your state has a 10% sales tax, you only sell items priced in even dollars, and the sales tax rounding rules are consistent.''

Latest revision as of 14:17, 23 May 2019

Sales Tax Basics

In order for RTS to calculate your tax accurately for your state, we use the tax bracket to assure RTS is rounding properly.

The alternative to this is either using the gross price and calculating the tax separately or we add a tax rate into RTS without the bracket. If you decide to go this route, your calculated tax may not be as accurate to what your city/state requires.

We have a tax report in RTS that will calculate your tax based on your total sales after the shift is closed. This is available under Reports -> Deposit -> Tax by Subtotal. Your tax rate can be configured from that window to be used for the calculation on the report.

Config.SalesTax.JPG

We suggest using the tax report to get your tax due when you actually need the information. Using the tax table in RTS will calculate your tax during the transaction but will also result in transaction totals to sometimes not round to the nearest quarter. This will require you to keep pennies in your drawer and can cause a slight increase in your transaction times.

Tickets and Concession Sales Tax Calculations

Tickets

Sales tax is specified for each ticket type. For instance: Adult Price=8.43 Tax=.57

This allows tickets to display the price and tax when printed.

Concession

Concession is more complicated unless your are including sales tax in the customer's price. Each state has a "tax table" that determines how to round sales tax in each transaction. Calculating the tax per item is not valid.

Let's look at an example.

At the time of writing the WA 8.4% tax table specifies a tax of.50 between 5.90 and 6.01 of taxable sales 1.01 between 11.97 and 12.08 of taxable sales. Let's assume a drink is priced at $6.00. When purchasing 1 drink the customer would pay 6.50 (6.00 price + .50 tax). When purchasing 2 drinks the customer would pay 13.01 (12.00 price + 1.01 tax). The second transaction will result in pennies in your cash drawer. This isn't a problem with WA, every state with sales tax will experience pennies in the drawer.


Yes, there is an exception to this. If your state has a 10% sales tax, you only sell items priced in even dollars, and the sales tax rounding rules are consistent.