Using Tax Steps provides an alternate way of calculating the tax for an item/transaction that is not based on a flat percentage tax rate. Tax steps are configured by specifying price ranges in the Tax Steps
tab of the Tax
window. They are the tax amounts charged for items or transactions priced lower than, or equal to, the amounts in the step fields. For example, configure a tax rate of 5% in the General
tab window, and type the following in fields 1, 2, and 3 in the Tax
Steps
tab window:
Tax step 1: $0.25
Tax step 2: $0.30
Tax step 3: 0.36.
Note
Although, the Configurator/POS Manager provides up to 52 tax steps, you do not need to configure all of these steps. The POS will assume that the first zero amount Tax Step amount will be the end of the tax steps.
The following table shows the taxes calculated for the tax steps and tax rate configured for the example:
Tax Step | Price Range | Tax Amount | Comments |
0 | $0.00 to $0.24 | $0.00 | Calculated using tax step |
1 | $0.25 to $0.29 | $0.01 | Calculated using tax step |
2 | $0.30 to $0.35 | $0.02 | Calculated using tax step |
3 | $0.36 and higher | 5% tax applied to the price | Calculated using tax rate |
The following are a few more examples using the tax steps and tax rate previously configured:
$0.00 tax is applied to a $0.23 priced item (tax step 0)
$0.01 tax is applied is applied to a $0.25 priced item (tax step 1)
$0.02 tax is applied to a $0.31 priced item (tax step 2)
$0.02 tax is applied to a $0.36 priced item (tax step 3. $0.36 x 5% = $0.018 which rounds up to $0.02)
$0.25 tax is applied to a $5.00 priced item (tax step 3 $5.00 x 5% = $0.25).