Some states require dispensaries to pay taxes on round-up fees collected at checkout, and you may also want to track this information for your own accounting purposes. Flowhub does not automatically apply taxes to round-up fees within the cashier, so you will need to calculate the amount using data from the Accounting report in Analytics. In this article, we'll guide you through locating the round-up fee total and calculating the tax.
Find the Round-Up Fee Total in Analytics
Select Analytics from the menu in the top left corner of the window.
Select the Accounting report.
Set your desired date range.
Use a date range that matches your tax reporting period.
Locate the Round Up Fee Amount row in the report.
This row displays the total dollar amount of round-up fees collected during the selected period.
💡 Tip: The Accounting report is currently the only place in Flowhub where round-up fee totals are broken out. This data is not yet available in Intelligence.
Calculate the Tax Owed
Once you have the round-up fee total from the Accounting report, multiply it by your applicable tax rate to determine the amount owed.
The formula is:
Round Up Fee Amount x Tax Rate = Tax Owed on Round-Up Fees
Example Calculation
If your Accounting report shows a Round Up Fee Amount of $500.00 and your applicable tax rate is 8.25%:
$500.00 x 0.0825 = $41.25
In this example, you would owe $41.25 in taxes on the round-up fees collected during that period.
💡 Tip: Check with your state's tax authority or your accountant to confirm which tax rate applies to round-up fees in your jurisdiction.
Frequently Asked Questions
Do I need to pay taxes on round-up fees?
Tax requirements for round-up fees vary by state. Consult your state's regulatory authority or your accountant to determine whether your state requires taxes on round-up fees.
Will Flowhub automatically calculate taxes on round-up fees?
No. Taxes on round-up fees are not calculated within the Flowhub cashier. You will need to use the Accounting report in Analytics to find the round-up fee total and calculate the taxes manually.
Can I find round-up fee data in Intelligence?
Round-up fee breakdowns are not currently available in Intelligence. Use the Accounting report in Analytics to access this data.
What if my state has multiple tax rates that apply to round-up fees?
If more than one tax rate applies, calculate each one separately using the same Round Up Fee Amount and add the results together. Consult your accountant for guidance on which rates apply.
You did it! 🙌 You now know how to find your round-up fee total and calculate taxes on round-up fees for your reporting period.