Using Tax Rates

1. Navigate to the Administration menu
2. Click Settings
3. Select the Department Info tab
   1. Active and inactive tax rates are visible on this page as well as an overview of their settings

4. Click Add New Tax Rate to build a new rate (see next section)
5. Click Edit All Tax Rates to quickly edit multiple tax rate settings at the same time

1. Users can also edit one rate at a time or delete a tax rate that will no longer be used

How Do I Set Up a Tax Rate?

1. In the top right corner of Tax Rate Management page, click the Add New Tax Rate link

1. Create the name of the tax rate
2. Select the taxable amount that is required by your department's tax policy
   1. There are six options to accommodate the majority of department needs, with the top two being the most commonly used

• Consider this scenario: you have a $25 yoga registration with a $5 late fee, a $10 sibling discount, and a $2 promo discount. Say the tax rate is 10%, see the breakdown below for how these rates would be calculated based on the Taxable Amount selection.

1. Base cost
   1. $25 base rate + 10% tax = $27.50 subtotal, then the $5 late fee, $10 sibling discount, and $2 promo are calculated 
   2. Grand total of $20.50
2. Adjusted cost (base cost + fees - discounts)
   1. $25 base rate + $5 late fee - $10 sibling discount - $2 promo = $18 subtotal + 10% tax
   2. Grand total of $19.80
3. Base cost + fees
   1. $25 base rate + $5 late fees = $30 + 10% tax = $33 subtotal - $10 sibling discount - $2 promo
   2. Grand total of $21.00
4. Base cost - discounts
   1. $25 base rate - $10 sibling discount - $2 promo = $13 + 10% tax = $14.30 subtotal + $5 late fee
   2. Grand total of $19.30
5. Base cost or Adjusted cost (highest amount)
   1. The system compares Base cost $25 > Adjusted cost $18, so 10% tax applies to Base cost
   2. Grand total $27.50
      1. Note: if another registrant does not get the sibling discount but the other adjustments are the same, their adjusted cost would be $28, so the system would tax the Adjusted cost, in this case
6. Base cost or Adjusted cost (lowest amount)
   1. Adjusted cost $18 < Base cost $25, so 10% tax applies to Adjusted cost
   2. Grand total $19.80
      1. Note: if another registrant does not get the sibling discount but the other adjustments are the same, their adjusted cost would be $28, so the system would tax the Base cost, in this case

3. Enter Amount

• This percentage is the tax rate (always a percentage)

4. Set the Global Tax Rate, if applicable

• Use if you have multiple items to set as taxable, and you want to apply this tax to all of them at once using checkboxes
• This setting is also used to avoid assigning a specific tax to items that you set as taxable in the future

5. Check the Applies to: boxes

• Can be used to apply different tax rates to different purchase types or to apply the same tax to all four purchase types

6. Click Submit

Adding Tax to Products

1. Navigate to the Products menu
2. Click Products
3. Click either Add New Product or click a product name and click Edit Product Info

4. Once the Tax Info dropdown is set to Taxable, you will see a menu to select the relevant tax rates
   1. If you’ve created a global tax rate, the tax rate will automatically apply to any taxable product
      1. For instance, a sales tax is a good use of this option

Adding Tax to Activity Registrations

There are two ways an activity can be taxed. The process is similar to adjustments in that they can be taxed at the program level or the activity level.

Program Level

To add a tax rate to the program level, you must first create the tax rate in the Administration menu under Department Settings>Department Info>Manage Tax Rates (see “How Do I Set Up a Tax Rate” at beginning of this article)

1. When you create the new tax rate, select the Activities checkbox
   1. Any tax rates set for Activities will appear as options for both Activity-level and Program-level taxes
2. Within the Program page, select the Tax Rates tab

3. Click Add/Edit Tax Rates
4. In the pop-up, you will see all Activities-type tax rates available
   1. Select the rate by clicking the checkbox(es)
   2. We suggest using descriptive naming conventions to help identify the correct tax rate when looking at them in list format
5. Click Submit
   1. Program tax rates will be applied to each taxable activity within the program
6. The management user can edit the added tax rates on a Program from the Tax Rates tab by clicking Add/Edit Tax Rates

Activity Level - Both Standard and Advanced Activities

To add a tax rate to the activity level, you must first create the tax rate in the Administration menu under Department Settings>Department Info>Manage Tax Rates (see “How Do I Set Up a Tax Rate” at beginning of this article)

1. Open the Program
2. Select the Activity
3. Click the Finance Info tab

4. Click Add/Edit Tax Rates at the bottom of the page
5. Set the activity dropdown in the Tax Info section as taxable 
6. Select the desired tax rates checkboxes
   1. The management user can edit the added tax rates on an Activity from the Finance Info tab by clicking Add/Edit Tax Rates
7. Click Submit

Adding Tax Rates to Memberships

Similar to Activity tax rates, Memberships can be taxed in two different areas - on the membership level or the individual length level.

Membership Level

Membership level tax rates will be applied to each taxable length within the membership. Membership level tax rates can be set or edited within the tax rate tab.

1. First, we suggest that you create the tax rate in the Administration menu>Settings>Department Info>Manage Tax Rates (see How Do I Set Up a Tax Rate above)
2. Create a new membership
   1. On the Edit Membership Fees screen, change the Taxable dropdown to activate the tax
      1. If the dropdown is greyed out, you may have selected an ineligible membership length, like a payment plan length or a recurring membership
         1. You will need to change the membership length because tax rates are not compatible with recurring memberships or membership payment plans
   2. Select the Tax Rate(s) by checking the tax rate boxes
3. Complete setup for the membership
4. Management users can edit the tax rates within the membership page using the Tax Rates tab
5. Click Add/Edit Tax Rates

6. Select the tax rate checkbox
7. Click Submit

Membership Length Level

During the process of adding a length to the membership, you’ll have the option to set the length as taxable and assign a tax rate(s).

• Membership-length-level tax rates can be set up or edited within the Membership Info tab of the membership length
• Use the Tax Rates tab on the top of the Membership page to see selected and/or global rates

1. Create the membership length and add it to the membership
2. Within the Membership Info tab of the membership, click the name of the length
3. Click the link to Edit this Membership Length at the top of the page
4. Scroll down past the Fee Information section to the Tax Info section of the page

5. Change the dropdown to Taxable
6. Select the Tax Rate checkboxes
7. Scroll to the bottom and click Submit

Adding a Tax Rate to a Reservation

Unlike Memberships/Activities, tax rates must be assigned to each rentable facility to be used for reservations. A non-global tax rate on a rentable parent facility will not be applied to a reservation on a facility area with a tax rate.

• For both Facilities and Facility Areas, the tax setting can be set or edited within the Rental Info Tab
• Reservation add-ons function as adjustments and will be factored into taxes at checkout

1. Click Facilities in the leftside navigation bar
2. View/Search Facilities
3. Select the facility or facility area
4. Click the Rental Info tab
5. See any existing Tax Rate details
6. Click Edit Rental Info to add or edit tax rates

7. Change the setting in the Taxable Dropdown
8. Select the Tax Rate checkboxes
9. Scroll down and click Submit

Reports

Taxes are included in the amounts shown for the Total column in finance reports, as shown here in the Transaction Income Report for instance.

In order to view only taxes paid/owed for specific rates, use the Sales Tax Report.

In order to view taxes paid for a specific rate, click into the taxes paid/sold totals.

Cancellations

When performing cancellations, taxes will be factored into refunds based on the tax type used at checkout.

If a cancellation fee is used, the tax is fully refunded first, then the fee is removed from the remainder of the refund.