The 2 ways you can round tax on your orders
With Zuppler’s Tax Rounding Strategy, you can determine how you would like your tax to be rounded on an order: Tax on the total or separate tax.
Tax on the total (Tax_on_total): This strategy will add the total of all service charges to the subtotal. Once the two have been added together, we will then multiply by the tax rate and round to the second decimal.
For reference, take the example below that uses a 7.125% sales tax:
Sandwich: $5.81
Chips: $1.59
Soup: $3.49
Delivery charge: $2.00
Service charge: $3.99
Total = $16.88 (items + service charges)
Total sales tax = $1.20 ($16.88 * 0.07125 = 1.2027 = 1.20)
In this example, you can see that the total sales tax is $1.20 after rounding to the second decimal.
Separate tax (Separate_tax): This strategy will fist all the food and beverage items together, multiply the tax rate and round to the second decimal. After getting the tax amount for the food and beverage, we will the same for all service charges. Finally, our system will add the tax amount from the food and beverage with the tax amount from all service charges to get the total tax amount.
For reference, we’ll use the same menu items and pricing above to show how this tax strategy works and the tax difference:
Sandwich: $5.81
Chips: $1.59
Soup: $3.49
Food and beverage = $10.89
Food and beverage tax = $0.78 (10.89 * 0.07125 = 0.7759125 = 0.78)
Delivery charge: $2.00
Service charge: $3.99
Total service charge = $5.99
Total service charge tax = $0.43 ($5.99 * 0.07125 = 0.4267875 = 0.43)
Total sales tax = $1.21 ($0.78 + $0.43 = $1.21)
In this example, you’ll see that after rounding to the second decimal the food and beverage tax is $0.78 and the total service charge tax is $0.43. After adding the food and beverage tax with the service charge tax, you get a total sales of $1.21
These tax strategies provide you more flexibility so that you can match based on how you tax internally or how tax is calculated through your integrations.
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