How is Sales Tax calculated on my online orders?

The matter of sales tax and whether it should be applied to the order by ItsaCheckmate depends on the ordering platform.

Some ordering platforms must abide by state laws related to Marketplace Facilitators whereby Marketplace Facilitators (in this case, the ordering platform companies) collect and remit sales tax on behalf of their third-party sellers' transactions. This effectively means that in these states, the restaurants will not be responsible for disbursing taxes to the states.

Since the Ordering Platforms process the payments, they are the ones who collect and remit the taxes.

How Does ItsaCheckmate Handle Sales Tax?

Even though the Ordering Platform may be keeping and handling the payment of sales taxes from the sale, the taxes will still be showing up ItsaCheckmate, and additionally, ItsaCheckmate may be calculating the tax amount and processing to the POS (or it is also possible the POS is calculating the taxes on its own --this is POS dependent).

How Do Restaurants Treat Sales Tax from Online Orders

We have seen different restaurants treat it in different ways:

1.  All orders are submitted as normal, with taxes, irrespective of the states in which these locations are

• Taxes are recorded in the POS and back-office systems and then are reconciled with the online ordering platforms.

• Just because it is recorded in the POS does not mean the restaurants have to actually pay the tax. The tax can be paid directly by the ordering platforms and then reconciled with the restaurants. 

2. Require that taxes that are not paid by them NOT be registered in the POS.

• Depending on the POS, ItsaCheckmate may have the ability to not send in the taxes for Online Orders for these locations.

• Some POSs have the ability to manipulate tax by Destination (or Dining Option).

NOTE: If you prefer option TWO, we may be able to accommodate the request depending on your POS. Please reach out to [e-mail] to inquire further.