- Overview
- Go Live rollout and migration of current tax settings
- Configuration and setup
- Creating new tax types
- Assigning Tax Types to Memberships and Packages
- Assigning Tax Types to POS products
- Assigning Tax Types to fees and other services
- Editing of established taxes and its effect on connected products/ memberships
- Special notes
Overview
Use Scenario
- In several states, clubs are to collect tax on products but not on services. We will need to provide configuration settings that allow for some memberships and packages to not be taxed but allow POS retail products to be taxable, or vice versa.
Example:
In Ohio, gym offerings could include memberships, packages, tanning, personal training, and POS items. Fitness brands need the ability to apply taxes to the appropriate services. For example: taxes are applied to services such as memberships, packages, and POS items. Ohio has a state tax of 7% plus a 10% federal tanning tax. Personal Training is exempt from taxes.
Use Case
As a club owner, I need to configure multiple tax rates and label them so that I can assign the appropriately to services, memberships, and products.
As a club owner, I may need to assign, 0, 1, or more tax rates to variable products, packages, memberships, and services.
Who/ Persona
Club owners
Frequency of use/ that this will happen/ need to happen
Monthly
AS IS-
Today we only allow for tax to be on or off and a single tax rate.
Go Live rollout and migration of current tax settings
During the rollout and code push to all locations, we will be mapping a single Tax Type in accordance with the current settings at each location. This means that if a location has Tax Enabled, Inclusive or Exclusive, we will match those settings precisely so that there is no interruption to the taxation process of sales prior to a business user interacting with the new interface.
In this screenshot, you can see the line-by-line configured items from the current state to the new Multi-Tax interface. Most locations will likely not be impacted by the new multi-tax interface and can continue to operate without any additional changes to the tax configurations.
Upon rollout of the feature, if the location has tax enabled then all membership services and fees will have inherited the tax assignments as described above. To edit or configure your tax types, business users will need to navigate in Core to Payments> Retail Configuration> Retail Settings> Are you registered for tax? Click the pencil icon to edit
Configuration and setup
Creating new tax types
In order to edit or configure your tax types, business users will need to navigate in Core to Payments> Retail Configuration> Retail Settings> Are you registered for tax? Click the pencil icon to edit.
Click the Add new Tax Type button and fill in the description and Tax rate.
Upon clicking Save Changes button, the system will enable the new tax type and save it to the location database. Note* All newly configured tax types require to be assigned to all services, fees and membership packages in order to be used. Adding a tax type here is only half of the effort required to use the new tax type. Please proceed to the following sections regarding Assigning Tax Types.
Assigning Tax Types to Memberships and Packages
Upon rollout of the feature, if the relocation has tax enabled then all membership services and fees will have inherited the tax assignments as described above.
When a new Tax Type has been created in Retail Settings, it will appear in a list and be available for assignment to all services and fees so long as it is enabled =Yes as described above.
To assign Tax Types
in Memberships, Navigate to Payment> Retails Settings> Memberships - select or create a membership.
Directly under Price the Taxable Setting checkbox is available to enable or disable tax calculations as well as allow the business user to select which Tax Types should be calculated.
Do not forget that there are other pricing options to edit in the Membership configuration, namely the Cancellation Fee. Again, the user is to checkmark to enable Taxable Setting and then they can then select the appropriate Tax Type.
Assigning Tax Types to POS products
All products in POS inventory may be assigned 1 or more tax types as needed or configured to not charge tax at all. Please navigate to Payments> Retail Settings> POS Inventory- select a product to edit and navigate to the Variable tab. Here a user can enable or disable Taxable Setting with a check box. When enabled, one or more tax types may be selected. **Pricing and tax is set independent to the product variables. Be sure the business user sets the tax type for Each Variable as it will not apply globally to all variables of the product.
One example of where multiple tax types may be set is in NY where they apply an additional tax amount on certain beverages and consumables that is over and above the state sales tax.
Assigning Tax Types to fees and other services
Schedule Fees
Business users will need to review all other possible fee configurations that can allow for Tax Type setup.
in Payments> Retail Settings> Retail Configuration> Schedule Fees, the user should enable or disable the tax types and select which apply as described above:
Session Drop-in Rates
Navigate to Schedule> Schedule templates
Select a template to add or edit via the + or pencil icon.
If the Drop-in Price is taxable, click the checkbox for Taxable Setting and select a Tax Type from the list.
To save the edit of the tax settings, the user must decide if this new configuration is to be saved for the template only or for the template and all (currently booked) future sessions by selecting the Update Template( only) button or Save and Update all Future Sessions respectively.
New Sale > Single Payments
Navigate to New Sale> Single and recurring payments.
Users may check the box to add Tax Types to the sale item:
Suspension Fee
Business users will have the opportunity during membership suspension assignments to add Tax Types to the fee. Navigating to Clients> select a Client> Payments tab> membership tab, select an active membership eyeball icon. Set the Status to suspended and select either a flat or recurring Suspension Fee. Check the box and select the Tax Type(s) to be charged.
Editing of established taxes and its effect on connected products/ memberships
Tax Types can be edited and even removed from the Retail settings configuration screen, however editing to disable or removing a Tax Type will have an immediate effect on sellable items and should be edited with discretion.
If a user returns to edit the tax types, they may at any time click to disable a tax type and force the system to not charge tax for this type when it is set as Enable Tax Type? = NO
While this configuration of NO keeps the Tax Type in the location database, it will disable its calculations from any sale items it was assigned to until it is re-enabled to YES via the radio button.
For historical accounting purposes, users may not delete an entire Tax Type from the system as previous sales likely had this tax enabled and historical reporting requires it remains in the database even after set to NO and disabled.
Editing a membership that has already been sold to clients
To edit Tax Types in a membership, choose the appropriate membership from the list in Payments> Retail Configuration.
When the user clicks the Edit Package button, they will be prompted to confirm whether the tax changes should affect all active memberships to this new setting. The answer here is almost always going to be a YES as most active memberships are likely to have future billings and it's highly probable the location requires all of these future pending payments to be updated to the latest in the tax settings.
Tax on Invoices
Invoices for sales will list Tax Types individually
A full example from setup to sale:
Configuration.
New sale screen
Checkout
Invoice
Membership Detail page
Import utility and club conversions
Details coming soon
Special notes
About Pay as you Go
Pay as you Go will not support the New Tax Types upon initial rollout. This is being evaluated based on customer feedback.
Split payment tax rounding
In the Schedule for Drop-in rates, users have an option to make a split of payment methods. This function may result in a slight variant in total tax amount collected based on rounding to the 3rd decimal of cents. The system may not always be possible to calculate and charge to 3 or more payment types the correct amount, variance can be about a .01 difference
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