How does sales tax work with Checkmate online orders?

Sales tax on Checkmate online orders depends on the ordering platform, the POS, and how the restaurant chooses to reconcile tax. This article covers how sales tax is applied, how Checkmate processes it, and how restaurants typically handle it.

How sales tax is applied

The application of sales tax depends on the ordering platform. Some platforms must adhere to state laws related to Marketplace Facilitators, where the platform collects and remits sales tax on behalf of its third-party sellers. In certain states, this means the restaurant is not responsible for disbursing taxes to the state.

How Checkmate processes sales tax

Even when the ordering platform handles the payment of sales taxes, the taxes still appear in Checkmate. Checkmate may calculate the tax amount and pass it through to the POS, although this can be POS-dependent. In some cases, the POS calculates the taxes on its own.

Tax rates can be adjusted in the Checkmate Portal for API-integrated menus and in the individual ordering platform portal for non-API-integrated menus. It is common for tax values to differ between the POS and the ordering platforms. Orders are still processed and accepted by the POS, and the tax values set on the POS are considered accurate.

How restaurants typically handle sales tax

Restaurants handle sales tax from online orders in different ways:

• Record and reconcile: All orders, including taxes, are recorded in the POS and back-office systems and then reconciled with the online ordering platforms.
• Direct payment by platform: Taxes recorded in the POS do not necessarily mean the restaurant has to pay them. The ordering platforms can pay the taxes directly and then reconcile with the restaurants.
• Exclude taxes in the POS: Some restaurants require that taxes not paid by them be excluded from the POS. Checkmate may exclude taxes for online orders, depending on the POS.

To request excluding taxes in the POS for online orders, contact Checkmate Support. This option is subject to POS compatibility.

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