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Configuring tax table rates

Before configuring a tax table rate, make sure that you have the state's tax table with you and that you have determined its tax pattern.

To configure a tax table rate

  1. Access the Toast administration back-end.

  2. Choose Menus > Menu management > Tax rates setup to open the Tax rates page.

  3. Click + Add Tax Rate.

  4. In the Basic section of the New tax rate page, enter the configuration information:

    • Name: Enter a name for the tax rate, such as State Tax Table Rate.

    • Target: Specifies the location in a restaurant group to which this tax rate applies. (This control is visible only if you have the enterprise module.) For information about targets, see Targets.

    • Owner: Specifies which group level permission is needed to edit this tax rate. (This control is visible only if you have the enterprise module.) For information about owners, see Owners and permissions.

    • Import ID: Leave this field blank. It is for internal use only.

    • Type: Select Tax Table.

    • Default: Select Yes to have the tax rate inherited by menus and menu items that are configured to inherit tax rates or select No to disable tax rate inheritance (for this setting, menus and menu items that do not inherit tax rates must be configured with specific tax rates).

  5. Use the Tax Table to build your Toast tax table:

    1. Because the tax table functionality of the Toast platform requires that it begin with a $0.00 (non-tax) bracket, you must first configure the $0.00 tax bracket. Enter the upper range of the tax bracket in the To (Sale Price) field and select Done.

      For example, if the sales range for the non-tax bracket is $0.00 to $0.09, then enter 0.09 in the To (Sale Price) field and select Done. The tax table should look like this example:

      Configuring the first (no-tax) bracket when building the Tax Table in the New tax rate page.

      Note that the system automatically updates the Price Difference field.

    2. Add the second tax bracket in the tax table by selecting the + Add button, entering the upper sales range of this tax bracket in the To (Sale Price) field (0.16 in this example), and selecting Done.

      Configuring the second tax bracket when building the Tax Table in the New tax rate page.

      Note that the system automatically updates the From (Sale Price), Tax Applied, and Price Difference fields. The tax in the Tax Applied for this tax bracket is increased by $0.01 from the previous tax bracket.

    3. Continue adding tax brackets until you think you have added enough tax brackets to discern the tax pattern in the Price Difference column.

      In our example, we have added a total of nine tax brackets, so that the Toast tax table looks like this:

      Continue adding tax brackets when building the Tax Table in the New tax rate page.
    4. Find the tax pattern in the Price Difference column.

      In our example of a 6-bracket tax pattern, the tax pattern begins with the second tax bracket ($0.10 to $0.16) and ends with the seventh tax bracket ($0.84 to $0.16). Note that the first tax bracket ($0.00 to $0.09) is not part of the tax pattern (your tax table may have multiple non-pattern tax brackets).

      Finding the tax pattern when building the Tax Table in the New tax rate page.
    5. Check Repeat in the tax bracket that begins the tax pattern and then select Done. Note that the system prevents you from selecting Repeat more than once.

      In our example, you select Repeat in the second tax bracket ($0.10 to $0.16).

      Finding the tax pattern when building the Tax Table in the New tax rate page.
    6. Clean up your tax table by removing the tax brackets that occur after the first pattern set. Start by removing the last tax bracket in the Toast tax table. To remove a tax bracket, click the trash can icon in the Remove column of the tax bracket and then select Done.

      In our example, after we removed the last two tax brackets, the final tax table looks like this.

      Removing unneeded tax brackets when building the tax table in the New tax rate page.
    7. Test your tax table with the Calculate Your Tax calculator. Enter any dollar amount in the Menu Item Price field and click Calculate. The system uses your tax table to calculate the sales tax that is shown in the Tax Applied field, as shown in the following example. Check that the applied tax matches the state tax table.

      Testing the Tax Table in the New tax rate page.
  6. Save and publish your changes.