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Setting Up Taxes in PayGo

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Setting Up Taxes in PayGo

Taxes can be confusing, but PayGo is here to help! In this article, we will cover all of the ways you can set tax rates for all of your stores.

Company Setup

The first place we’ll start is in your Company Setup screen, where you will set up your default tax rates for your store. This screen is accessed by clicking the Admin Central button on your Menu, and then clicking the Company Setup button at the top of your Admin & Settings screen. This will open your Company Setup screen.

In your Company Setup screen, click the Tax Info tab. This is where you can set the default tax rates for your store. These rates will be automatically calculated on each transaction. 

Within this tab, you will see two lines for taxes. These are typically used for City and State tax rates, but can be used for any type of tax rates your location requires. Enter the Tax Title and Percentage Rate for each tax type, and then set a Title for Combined Tax (typically Total Tax or similar) and the Tax Calc (calculation) Type. The options for your calculation type are Exclusive, which means that tax is added on top of the retail price at time of the sale, or Inclusive, which means that the tax is included in the displayed retail price of the item.

Within this tab, you will also see a Define Tax Codes button on the right side of the screen. This will open the Tax Information screen, where you will have the option to set up multiple tax rates for multiple locations. This is explained in more detail below.

When you have set these options, click the Close button at the top of your screen to set your default tax calculation method. Your changes will be saved automatically.

Defining Tax Codes For Multiple Rates or Locations

If you have stores in multiple locations or you need to set multiple tax rates, click the Define Tax Codes button. This will take you to the Tax Information screen. On this screen, you will see a list of all of your currently defined tax rates, organized by Tax Name, Tax Rates (both 1 and 2), Calc. (calculation) Method, and Store ID. You can click on the Magnifying Glass button for each line item to view the tax code’s Tax Table Setup screen, and you can delete an existing tax code by clicking the Trash icon at the end of each line item.

On the Tax Information screen, you can add new tax rates for your stores by clicking the New Tax button. This will open the Tax Table Setup screen.

On the Tax Table Setup screen, you can set up each store’s individual tax rates. You will have room for the tax’s Tax Name, and two fields for Tax Rates, which should be expressed as a percentage. For instance, if your state and local tax rates are 5% and 8%, you would express those rates as .05 and .08. You can also select if the tax rates you’re setting will be the default rates for your store by checking the Default? box next to the Tax Rates field.

You can also set the Calculation Method on this screen. This will set up how taxes are calculated for each sale. The tax options are as follows:

1= (tax1 + tax2) * invoice total – This option will charge both tax rates based on the Invoice totals, and not per item.

2= ((1+tax1) *invoice total) *tax2 – This option will charge your first tax rate per item, and then it will apply your second tax rate to the Invoice total.

Default Tax Code For Site: This is where you will define the store number you’re setting up the tax table for.

At the bottom of the Tax Table Setup screen, you will see an option to have PayGo auto-enter the customer tax setting. Enter the values for your State/Province and ZIP Code in the provided fields.

Default Tax Code for Site: You can have PayGo automatically enter the customer tax setting by entering in the values for your state and store ZIP code in the provided fields on the bottom of the Tax Table Setup button.

Setting Taxes Per Product or Department

If you have certain items in your store that require different taxation, you can set up their tax rates per product or department.

Setting Taxes per Department

Within the Details tab, you will see two fields for Taxable 1 and Taxable 2. You will see that these fields are filled with either a T (meaning taxed) or an N (meaning not taxed). The taxes applied here are set in accordance with your default tax profile, which is set within the Tax Info tab of your Company Setup screen, accessed via your Admin Central. However, if you have a department that is taxed differently at different locations, you can click the Tax tab on your Department Setup screen. This will open the Tax Settings by Location screen.

On the Tax Settings by Location screen, you will see drop-down fields in the Store Name column, where you can select the store you’re setting the tax profile for. On that store’s line, you can set your Taxable1 and Taxable2 invoice application with a T (taxed) or an N (not taxed).

When you are finished setting taxes per location within the department, click the Save & Close button at the top of the screen. Your changes will be saved automatically.

Setting Taxes per Product

Occasionally, you may only have a few items in your store that need to be taxed. If so, you can set taxable rates for your inventory items through the item’s Product screen. To access the Product Screen, open your central Products screen and either search for the item via the Search By area on the upper left side of the screen, by clicking the New Product button and creating a new inventory item, or by clicking the List Products screen and selecting the item from the list.

On your item’s Product Screen, click on the Pricing tab. This will open the item’s Location Cost and Pricing. Within this tab, you will see two fields each for Taxable 1 and Taxable 2. You will see that these fields are filled with either a T (meaning taxed) or an N (meaning not taxed). The taxes applied here are set in accordance with your default tax profile, set in your Company Setup screen. You can apply or remove the taxes for this item by changing the fields for each taxable charge to either a T or N. When you’re finished, click the Back button. This will close the item’s Product Screen and save all of your changes.

You can also change tax profiles for your consignment items. To do so, locate the consignment item by searching in the Search By fields on both the main Products and Consignment screens, clicking the List Consignment button on either of your Products or Consignment screens, or you can create a new consignment item by clicking the New Consignment Item button on either of your Products or Consignment screens.

On your item’s Consignment Inventory screen, you will see fields for Taxable 1 and Taxable 2 towards the bottom of the screen, in the Item Cost and Pricing area. You can change those tax rates to either a T (meaning taxed) or an N (meaning not taxed). When you have made your changes, click the Save & Close button. This will save your changes and close the item’s screen.

Adjusting Taxes Within an Open Sale

Sometimes you must adjust or modify sales taxes applied during an open sale. Luckily, this can be changed without even leaving your sale!

To adjust the taxation on a sale, you must first open the sale and ring up the items you will be changing taxes for in your Sale Screen. Select the items to adjust by checking the box at the end of each line item or clicking the Select All button above the invoice list to select each item. When your items are selected, you will see a Tax button appear above the invoice list.

Clicking the Tax button will open a Modify Taxes sub-menu. On this menu, you will see your pre-defined tax profiles as set in your Company Settings (typically labeled City Tax and State Tax, but this depends on your profile), where you can select T (taxed) or N (not taxed) for each. You will also see an option for Tax 3, which is where you could add a currently undefined tax. If you choose Tax 3, be sure to set the taxation amount as a decimal; for instance, if you were to set a 3% tax it would be expressed as .03 in the field.

Below these tax profiles, you will also see a drop-down menu where you can choose a specific tax profile to be used for the sale as set in your Company Settings.

When you are finished adjusting your taxation, click Continue. Your Sales Screen invoice will reflect your changes.

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