Taxes
Will you be using the banquet check, booking check, or inclusive pricing? If so, you need to enter your property’s taxes.
Some property's taxes are complex, so there’s a very specific way you need to enter them to make sure everything calculates and merges correctly.
Before you get started with taxes, here are a two things you need to do. Please go to Setup > Revenue Classifications and do the following:
- Enter your property's default administrative charge and gratuity for each revenue classification.
- Add additional sub revenue classifications for items that require unique tax rules, such as liquor (Optional).
Setting up taxes
You’ll probably need to enter two tax sets—one that includes your property’s standard taxes and another for groups that are tax exempt. When you finish creating your tax sets, go to the Property Details page and specify one tax set as the default for new events. You can change the tax set manually on your events when necessary.
How are taxes calculated?
An item's revenue breakdown determines how it will be taxed. For example, a Wedding Reception is 45.00 per person. The menu includes all food, beverage, and audio visual and is allocated as follows:
- 20.00 to Food
- 10.00 to Beverage
- 5.00 to Resource
- 10.00 to Audio Visual
The banquet check will look at each of those revenue classifications to determine which taxes should be applied and calculate the total taxes accordingly.
Guestroom taxes
Guestroom taxes can be entered as a percentage and/or a flat rate tax.
If your property charges guestroom tax as a percentage, select the Guestroom check box as a revenue classification when creating your tax subset.
If you charge a flat rate tax (for example, 2.00 per person per night), click + Guestroom Flat Tax. Flat taxes are not calculated into inclusive prices—they display only when you print a booking check.
If your property charges a percentage and a flat rate tax, select both the Guestroom check box as a revenue classification and click + Guestroom Flat Tax.
How do I create a tax set for groups that are tax exempt?
To create a tax exempt tax set click + Tax Set to open the Tax Set window. Enter a tax set name, for example, Tax Exempt. Click Create Tax Set to save.
No additional steps are required when creating a Tax Exempt tax set. The tax set is an empty tax set used to remove all taxes from a booking so banquet checks or booking checks can be provided tax free.
How do I edit my taxes?
From Taxes, you can change the name of a tax set and its effective date range. You can also modify the taxes that have been added to the tax set. Your changes will affect all events, guestrooms, and other income where the tax set has been applied, as well as any banquet or booking checks that are printed after the changes have been made. If a record, such as an event, no longer falls within the tax set's date range, a message will be displayed at the top of the event and guestrooms detail pages.
To edit a tax set:
- Click on the name of the tax set.
- Update the Name, Description and Start/End Dates as needed.
- To deactivate the tax set and make it unavailable to users, clear the Active check box.
- Under Tax Subsets, do any of the following to modify a tax subset:
- Click on a tax subset and edit the Name, Rate, as well as what the tax applies to: Base, Admin, and/or Gratuity.
- Click + Tax Subset to enter an additional tax subset.
- Click on a tax subset and click Delete to remove it. You are prompted to confirm your deletion. The tax subset and all the taxes it contains are deleted.
- Click Save.