Royal TS4240 - Selecting the Tax System

TS4240 User’s Guide 72
Selecting the Tax System
As mentioned in earlier chapters in this manual about tax programming,
for many businesses, programming the sales tax as a straight fixed rate is
adequate; however some states and municipalities require the tax rate to
be programmed using a tax table code which insures very precise tax
calculation.
Tax Limits
Also discussed in this chapter is the Tax Limit setting. The tax limit or base
tax amount is the maximum amount up to which no tax is charged.
Sometimes this is also called “base tax” or “maximum tax exempt
amount”.
By default, your cash register does not set a maximum tax exempt amount
or “tax limit”, resulting in all amounts being taxable starting from .01 cent.
If your base tax amount is other than .01 cent, program the Tax Limit
setting as explained Programming Straight Add-on Tax in the United
States on page 73. This Tax Limit setting is available for U.S. Add-On tax
when programming a straight fixed rate and also for the Canadian Tax
System.
You do not need to reprogram all options if you want to update or change
one thing. Save this manual in a safe place so you have it for future
programming. After you are done programming, you can print
Confirmation Reports to check your results. For more information, see
Running Reports on page 87.
Selecting the Tax System
Within the tax system you select, you can program up to 4 different tax
rates on your cash register. Each tax rate can be linked directly to a
department (see Programming Tax Status on page 35), and overridden by
pressing the Tax 1 to Tax 4 keys during sales transactions.
Contact your local state government office for your current tax rates.
You must first select one of 3 tax systems:
• Select USA (ADD-ON RATE) - the tax amount is added onto the price
of the item sold. Add-on Tax is most common in the United States.
Add-on Tax can be programmed as either:
• straight tax, which charges tax based on a flat percentage rate. For
example, 7.75% of the price of the item. This form of add-on tax is most
common in the United States.