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Creating & Applying Tax Rates

ERPLY supports multiple tax rates and tax scenarios.  Please note that this guide is on how to set up and apply taxes within the ERPLY system.  To find out what taxes apply to you please consult your city or state tax code, or an accountant who knows tax laws in your area of business.

  1. Create a tax rate
  2. Applying your Taxes

 

Create a tax rate

Taxes, once entered into ERPLY cannot be deleted, but the names can be edited.

 

Set up tax rates

Navigate to the settings menu, and select ‘Set up tax rates’

Or, from your settings module, select ‘tax rates’ from the left hand menu.

Select NEW

To make a new tax rate available in your system, Click the ‘New’ button in the upper right hand corner.

 


 

Define your tax

Type the name of tax rate and % to be applied.  ERPLY support recommends including your tax rate in the name of your tax.  It can be useful to also include the area for which this applies eg. ‘NYC – 8.725’.

The tax rate should be your total applicable tax rate.  If your state charges 5% and your city charges 2%, you need to combine them to get your effective rate (7%)

 


 

Price-based taxing

In some locations (Massachusetts), some items are taxed differently for the portion of the item’s price that is over a set threshold.  This type of tax rate is added as a regular rate, then applied like a normal rate as outlined below in ‘Applying your Taxes’

If item sales price is over a certain threshold, then the value below threshold is taxed with one rate (which can also be 0%) and the value above threshold is taxed at a different rate.

As a next step, you’d associate this new tax rate with a register, or with a product group, so that it would apply automatically when needed.

See also Tiered Taxes

 


 

City/State/County

This is a configuration that can be applied to paid accounts, and is not on by default.

When adding taxes- you can break down by City, State, County:

Receipt ONLY shows the aggregated total (not 3 tier breakdown), but reports break it down:

 

Tax Code

While setting up your tax rates, you can also setup your account codes for your accounting software using the ‘tax code’ field. This works in conjunction with both ERPLY accounting, and our Quickbooks export.
 


 

Save.

Once saved, the percent cannot be changed, but new rates may be added, and old rates may be renamed or assigned new numbers in the accounting software.

 


 

Applying your Taxes

The tax rates to be used should now be in ERPLY, your next step is to apply this rate.  You can apply this rate in several ways, depending on your usage scenario.


 

Register

Default tax rate applied at the register, this overrides tax rates set on items, or product groups.  This is the most common and usually best set up.

 

To Apply tax rate by the Register:

Navigate to your register

Choose TAX RATE to be applied from the drop down

SAVE to apply changes.

If you are logged into this Register currently, you may have to log out then back in again to apply the new setting.

 

Product Group

You can assign tax rates by location and product group on the product group settings.  The register should have no tax rate on it for this to work.  This is generally used for setting tax rates on Non-Stock Items (services) in groups, or groups that may have different tax rates.

Applying tax rates by Product and Service Group:

Navigate to Product and Service Groups

Right click (ctrl-click on Mac) the specific Product and Service Group to be updated and select Edit from the dropdown.

In the middle of the Product group card, you have the option of choosing a specific tax rate for any specific location.

Keep in mind, the tax rate chosen only affects the products within the product group at the location specified.

If choosing to set all taxes by product group please note you will need to assign a tax rate to each one. If left to “default tax” it will take the tax rate from the register or product card.

Tax rates are not ‘inherited’ by lower product groups.  If you want a tax rate on a child, or tree-d product group, you must set it in each group.

SAVE  your new settings.

If you are currently logged into affected registers, you may have to log out, then back in to apply the new setting.


Example

Here’s a quick example  to set up the dual tax rates by product group
First they need to be created, in this case, this is set up as a component (city/state) tax rate:
Now we apply the tax rates by product group. Go to Inventory module, then Product and Service Groups on the left-hand side, and right click your product group and “edit”:


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You’ll see you can apply the tobacco tax via dropdown by location within the product group. For this specific setup, taxes will only be applied by product group. For items outside the tobacco group, your standard sales tax should be applied (this is via the register). Receipt layout with breakdown shown below:

Tiered tax

Tiered tax rates are set up at shop level (Location), and is a lower priority than product group rates.

ex. If a shop sells both clothing and other kinds of items (non-clothing), you need to set up tiered tax as the default, and configure exceptions for all other product groups.

1. The sub-Threshold ($110) rate as the baseline, and goes to register card:

2. On location card, we will establish the over-threshold ($110) tier:

3. For all other product groups that do not need this type of rate, we need to override the tiered tax rates using product group taxes

Result in Touch POS:

 

Product Level

A tax rate is attached to each product. No tax rate should be set on product group or register for this tax rate to be applied.  This is generally only used if you have a lot of applicable taxes.

 


 

By import

When items need to be taxed individually the most time-effective way to assign this to all of the items is to import this information.  To do this, taxes should be set-up first, then the percent should be noted on the import sheet in the ‘tax rate’ column. There should be no % sign in the document.

Please consult our import guide for more information on the import process.

 


 

Via the INVENTORY module

Locate product to be assigned tax rate- (you can use the filters to search):

Click item “name” to open Product card– choose your tax rate from the drop down menu on the product card.

SAVE to finalize

If this product is sold through a register with a tax rate applied, the register will override the tax rate.

 


 

Tax Free at All Locations

This checkbox is set on the product card and will override all tax rates set on the item otherwise (by group, item, or register).  This is for items that are never taxed, such as stamps, or some Non-stock items.