Jan
10
2013
January 10th, 2013 by Mike Spence

Here is something that comes up every once in a while. . .  If you have delivery drivers, then you might be paying more in insurance than you need to.

Most insurance companies bill you based on total payroll hours for all employees working the store.  Delivery drivers are billed at a higher dollar per hour than kitchen prep or cashiers.  This is done because there is obviously more risk when an employee is on the road.  The problem here is the you are also paying the higher rate for that employee when they are not on the road as well.

For example . . .  Let’s assume your insurance company bills you at $2 per $100 in payroll for prep, cashier etc and then $7 per $100 for delivery drivers.

For this store, they did 7,000 deliveries and 2,830 hours on the road.  That is an average of 24 minutes per run.  Insurance should only be billed at the higher rate for that payroll that was on the road! By taking the total payroll for all delivery drivers and subtracting out the payroll amount for those 2,830 hours on the road, we can get a true figure of how much payroll should be billed at the higher rate.

In this case, it was an $1,100 savings in insurance!

If you have deliveries, see how we can help you with our XML ticket history report.

 

 

Posted in Delivery, Employees Tagged with: , ,

Jan
26
2012
January 26th, 2012 by Mike Spence

People are sometimes confused by the different methods of collecting tax in SP-1.   SP-1 is capable of handling five different tax rates with in our standard (non-Canadian) version.  We then setup the taxable items in the Menu Group file.   As a reminder, Menu Groups are main categories.  For example, Coffee, Tea, Pizza, Sandwich, Beverages etc.

In the menu group, you can distinguish further by having a different taxable rates by the order type.  Each Menu Group can have a different rate for Carry Out, Dine In, Pick up and Delivery.    For example.  You might have 8.5% for carry out coffee and 9.5% for dine in coffee etc.  There is also the ability to set a Menu Group to the 0 tax rate.  That will indicate that this is a non-taxed item.  This is different than a tax exempt sale however.

Tax exempt sales happen when you sell an item that is usually taxed to a  customer that does not pay sales tax.  This is handled by creating a customer record and then setting the taxable switch for that customer to non-taxable.

Not to take this too far but we also have the ability to handle the GST / PST tax rates in Canada.   Lastly, we handle a VAT (Value Added Tax) ability and the ability to add a PIF (public improvement fee).

Any questions?  Just let us know!

 

Posted in Order Entry, POS Features, Reporting Tagged with: ,

Dec
29
2010
December 29th, 2010 by ssadmin
Tax Rates!

I know, not the most exciting topic!  However, we are asked on a regular basis about how tax rates can be calculated in SP-1.
We have multiple ways to accommodate the taxing of items in SP-1.  Every menu group can be assigned one of five different tax levels and this can also be determined by the order type!  Some examples:
  • Charge 9.3% tax on pizza for delivery and 8.3% on pizza for dine in.
  • Charge 9.3% tax on coffee for here and no tax when it is carry out.
  • Charge 7.3% on beverages and 6.3% on food and 5.5% on retail.
Don’t forget that if you deal with non-taxable customers (church or non-profit), then you can set that up as well by creating a customer profile for the situation. 
For those of you out of country, we support the VAT (Value Added Tax) as well as the Canadian GST, PST and HST.
For those of you in states that require the tax be based on the tax code the customer lives in, we have you covered as well.  Our Use Customer Delivery switch allows you to specify the location zone and tax rate that is appropriate.  This is great when you are charging a different tax based on the location.
Finally, for those of you in states that have instituted a “fee” or tax that is then taxable, we can even cover this. We have a few customers that are in cities / states that charge a unique tax.  For example, drinks incur an additional 2.5% tax and then the ticket is sub-totaled and tax is applied on the whole thing!  I know it seems weird but there are areas that are doing it!
Of course we report all the details here as well!

Contact us at:
SelbySoft
Mike Spence
800-454-4434
Sales@SelbySoft.com
WWW.SelbySoft.com
8326 Woodland Ave. E
Puyallup Wa 98371

Posted in Uncategorized Tagged with:

Nov
16
2009
November 16th, 2009 by ssadmin

This morning I had an email asking about non-taxable sales and I thought it would make a good blog topic!

Basically there are two things we talk about with non-taxable sales. . . The first is Tax Exempt situations. These are the situations where you are selling to a non-taxable organization, group or person. For instance, church, school, people from Alaska or Oregon. With this, you can actually create a customer entry for each person by adding a customer in Order Entry and then making sure the Taxable switch is not selected. This will allow you to track each non-taxable order made by that individual.

Now, if this is a very rare event for you, then you might want to create one customer and call it Tax Exempt. This gives you the ability to immediately handle the order in the future without going through the trouble of entering a customer.

These transactions will show up on the Business Summary under Tax Exempt Sales.

The second scenario is when you have specific items that are non-taxable. SP-1 handles up to 5 different tax rates and then also a sixth when the tax is set to 0. So, on your Menu Groups, you have the ability to set each menu item to a specific tax (or 0 tax in this case) and to do this by the order type! For example, you might have an item that you have to charge tax on when it is prepared in house but not for to-go orders.

These taxes also show on the Business Summary under the Tax Rates as None.

I hope this helps.
Contact us at:
SelbySoft
Mike Spence
800-454-4434
Sales@SelbySoft.com
WWW.SelbySoft.com
8326 Woodland Ave. E
Puyallup Wa 98371

Posted in Order Entry, Reporting, Uncategorized Tagged with: , ,