Multi-Tax User Configurations

Dec 22, 2023

205

Overview

Use Scenario

In several states, clubs are to collect tax on products but not on services, therefore, we 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 (ie. 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 them 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.

CONFIGURATION AND SETUP

Creating New Tax Types

In order to edit or configure your tax types, business users will need to navigate to the Core Dashboard > Payments > Retail Configuration > Retail Settings > Are you registered for tax? >
Click the pencil icon to edit.

Click the Add New Tax Type button and complete all required fields

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

If the business location 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 within the Are you Registered for Tax? pop up window (as seen above).

To assign Tax Types to a membership or package.

Navigate to Payment > Retails Configurations > Memberships or Session Package > Select the pencil icon to edit an existing membership/package or click Create New

Directly under Price you will see the Taxable Setting checkbox is available to enable or disable tax calculations. Utilise the Taxable Settings dropdown menu to select/deselect the desired tax options.

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.

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.

Payments > Retail Configurations > Retail Settings > 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 > Cog Icon (Schedule Settings) > Schedule Templates

Edit an existing template by selecting the Pencil icon to the right of the listed template.

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 Payments > New Sale > Single or 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 > Memberships tab, select the eye icon on an active membership. 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 adjust the rate of the tax and this will effect the next and future sales of any items attached to this tax. ie. if there is a tax rate increase from 5.75 to 6.00 then all new sales, as of the configuration change, will ring up and sell at 6%. No retroactive increases shall be expected.
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 historic reporting requires it to remain in the database even after set to NO and disabled.

Editing a Membership that has currently active clients.
To edit Tax Types in a membership, choose the appropriate membership from the list in Payments > Retail Configurations > Memberships

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.