How do I handle taxes in SalonTouch

Modified on Mon, Nov 4, 2019 at 4:46 PM

Taxes are a fact of life. With the introduction of the Federal Tan Tax for UV tanning going into effect July 1st 2010 it has become a bit more complicated. We have incorporated the setup and management of taxes into SalonTouch to assist with this.

Tax Rate Setup

Click Setup
Click Register on the left side.
Click Tax Rates on the left side.
You can use any other available tax entry that is not currently in use. We recommend using Tax #4 as it very rarely used. For the description enter either FedTx, TanTx, TTax or any description that will make sense to you on reports. There is a limit of 5 characters for this field.
Enter the decimal amount of the tax in the Amount Column i.e. since the Federal Tan Tax is 10% you will enter .1 and 10% will appear in the % column.

Click Save at the bottom.

Product and Service Tax Setup

Taxes charged on products and services at the register can be setup individually to customize the tax needs of the salon.

Click Setup.
Click either Products, Tan Services, or Provider Services depending on what SalonTouch modules you have activated.
Either create a new item or click on one to edit it.
In the lower right corner of the item is a list of taxes. Place a check mark next to the ones you wish to apply to the product or service.
Services have the ability to apply only part of the tax to the purchase price at the register. This is most often used with Tanning Services where the Federal Tan Tax is only applied to part of the purchase price.
After the taxes have been applied, click Save to save your changes.

Tan Service Surcharge Tax Setup

Information can be found here for setting up taxes on room upgrades:

http://help.salontouch.com/support/solutions/articles/14000087395-how-do-i-charge-tanning-tax-on-room-surcharges-or-room-upgrades-

EFT Service Tax Setup

EFT Register Setup Section

Click Setup.
Click Register on the left side.
Click EFTs on the left.
You will need to check the boxes for the applicable taxes that are going to be the default for EFT drafts and EFT Freeze drafts.
The example below will apply the State Sales Tax and Federal Tan Tax from the above example by default to all EFT services. If a service such as red light therapy or massage does not apply a tax, you will need to individually change the tax settings on that service.

You will also want to check off the settings for "Print only the last 4 account numbers." and "Print the draft amount including tax." under the When Printing EFT contracts section.

With these options checked the EFT contract will print the draft amount plus the draft tax amount and not display the full account information for security purposes.
Click Save.

EFT Tan Service Tax Setup using the Tanning Module

Click Setup.
Click Tan Services on the left side.
Select the EFT tan service to modify.
Click the EFT tab.
Click Add to enter a new Draft amount and apply taxes to it.
Click Apply to close the Window.
The example below shows the 10% Federal Tan Tax (Tax 2) being applied to a service, but not the State Sales Tax (Tax 1).
You can also modify the Draft amount or the taxes by clicking on the dollar amount and editing it.
The draft amount can be broken down into subtotals, each with their own tax settings. You can use this to breakdown the portion of the draft amount that is taxable with the new Federal Tan Tax. The example below shows a "Double Dip" service where the fair-market value of the UV service is taxed, but the fair-market value of the spray tan portion is not.
Click Save then close the window or return to the service list by click List on the left side.