Sales Tax Collection Methods

This help topic is applicable to the following TireMaster applications:

TireMaster Point of Sale

TireMaster Plus

TireMaster Corporate

You can base your sales tax collections on one of the following:

The default tax levels for your store

The tax levels assigned to individual customers

Basing tax collections on the levels assigned to individual customers is sufficient if your sales tax requirements are minimal, such as if you only need to collect state sales tax or if all of your stores are located within the same tax jurisdiction.

If you need to collect taxes for a variety of government agencies, such as the state and multiple cities that each have different tax rates, you can base your sales tax collections on the default tax levels for your store. Basing collections on your store’s levels, helps to ensure that you collect enough sales tax to satisfy the requirements of all of the various government agencies.

Example: You have a store in Minneapolis which charges 10% sales tax. Five percent of it goes to the state and the other 5% goes to the city. Many of your customers, however, are assigned a tax level amounting to 6% sales tax. They’re from nearby St. Paul where they pay the same 5% state tax and a city tax of only 1%. By basing sales tax collections on your store’s default tax levels, you can automatically charge the customers from St. Paul 10% sales tax instead of 6%, which ensures that the state of Minnesota and the city of Minneapolis both get their share of tax dollars.

Although this scenario typically occurs in TireMaster Corporate environments, where customers are added at various locations with differing sales tax requirements, the option to base sales tax on store levels can also be used in TireMaster Plus and TireMaster Point of Sale systems.

Note: If you base sales tax collections on your store’s default levels, there are two instances in which this setting is disregarded: 1) When the customer is exempt from paying sales tax, and 2) When you’re prompted to choose the customer’s tax level at point of sale, because of settings for the customer’s customer type.

You can define how sales tax is collected by setting a system control.

To define how sales tax is collected

1. Select Setup > System Controls. The System Controls screen opens.
2. Click the Customer tab.
3. Select Sales Tax - Use Tax Levels Assigned to Customers and press Enter.
4. Do one of the following:

To base your sales tax collections on the default parts and labor tax levels for your store, select No.

Note: The system controls for setting your store’s default tax levels are Customer/Site Default Tax Level - Labor and Customer/Site Default Tax Level - Parts.

To base your sales tax collections on the tax levels assigned to individual customers, select Yes.

5. In TireMaster Corporate, repeat steps 3 and 4 until the control has been set for all sites.
6. Close the System Controls screen.