Back Office Tax Table Configuration in the Restaurant Solution

Some states require the use of a tax table to calculate sales tax. Use the Back Office to create a tax table for each jurisdiction with which you need to comply. Prior to configuring a tax table in the Back Office, obtain a copy of the tax table to which you are subject. It is necessary to determine the period of tax repetition for the tax table and the tax amount for each period of tax repetition.

The period of tax repetition is the point at which the tax table begins repeating itself. You determine the point at which your tax table begins to repeat itself by looking at the fractional portion of your specific tax rate. The following table shows the period of tax repetition for the following fractional portions of a tax rate: '.0,' '0.25,' '0.5,' and '0.75.'

Determining Your Period of Tax Repetition

You calculate the tax for each period of tax repetition by multiplying the period of repetition by the tax table percentage. Example: If the tax table percentage is 7.75%, then the period of tax repetition is $4.00. When you multiply '$4.00' x '7.75%,' the answer is $0.31. This is the tax for each period of tax repetition. Once you determine the period of tax repetition and the tax for each period, you can begin to create a tax table.

Breakpoints are the value at which you must apply a higher tax. When you create a tax table in Aloha Cloud, it is necessary to input the required breakpoints. Example: If the period of repetition is '4.00,' then you would input the breakpoints up to and inclusive of '$4.00.' Consult the tax table for which you are subject to locate the breakpoints.

NOTE:
Only tax tables with exclusive taxes are supported.

To add a tax table 

NOTE: 
This process uses an example scenario to demonstrate. This scenario is intended for example purposes only.

1. In the Back Office Company View (All Stores), select Settings > Taxes.
2. From the left navigation, click Tax Tables. 
3. Type a name for the tax table. Example: Type 'Florida 7.75%.'
4. In Start of Repetition, leave the amount as 0.00. In most cases, the amount will be 0.00; however, in some states, such as Maryland, where the first dollar is taxed differently than subsequent dollars, it is necessary to enter an amount other than 0.00 in Start of Repetition. 
5. Enter the amount for Repetition Period. In this example, enter 4.00 because the period of tax repetition for a fractional portion ending in .75 is '4.00.'
6. Enter the amount in Tax for Period. In this example, enter '0.31,' arrived at by multiplying the period of tax repetition by the tax percentage. In this example, $4.00 x 7.75% = 0.31.
7. Click + to add a breakpoint for the amount of '0.00,' and then click '+' icon again to add the first breakpoint from your tax table.
8. Referring to the Florida tax table, enter the starting sales amount for the breakpoint. Example: If the sales range for the breakpoint is '.10' to '.12,' you only need to enter '.10.' The system automatically enters the amount for the TAX column.
9. Click + to move to the next breakpoint. In this scenario, the system inserts a breakpoint at the beginning of the table to account for the sales amounts less than '.10,' and the breakpoint you just entered becomes the second breakpoint.
10. Repeat for as many breakpoints as necessary. In this example, the period of repetition is 4.00. Enter breakpoints up to the sales amount of '$4.09.'
11. Click Save Changes. You can now assign the tax table to a tax category.