Case 1: Tax A is not primary, it is not taxable, and it includes surcharges.
Notice that the choose button is enabled.
Assumptions for sample calculation:
Taxable charges = $300
Tax A is not a primary tax, it is not taxable, and it includes surcharges. The rate is 7%
Tax B is a surcharge of 4%
Surcharge Calculation
Tax B = $300 * .04 = $12.00
Main Tax Calculation
Tax A = ($300 + $12.00) * .07 = $21.84
Case 2: Tax A is primary and it is taxable, and it includes surcharges.
By default, this tax will include its own surcharge in its taxable base.
Assumptions for sample calculation:
Taxable charges = $300
Tax A is a primary tax, and it is taxable. The rate is 7%
Tax B is a surcharge of 4%
Surcharge Calculation
Tax B = $300 * .04 = $12.00
Tax A = $300 * .07 = $21.00
Main Tax Calculation
Tax A = ($300 + $21.00 + $12.00) * .07 = $23.31
Case 3: Tax A is Primary and it is not taxable. It includes surcharges.
By default, this tax includes all surcharges.
Assumptions for sample calculation:
Taxable charges = $300
Tax A is a Primary tax of 7%
Tax B is a surcharge of 4%
Surcharge Calculation
Tax B = $300 * .04 = $12.00
Main Tax Calculation
Tax A = ( $300 + $12.00 ) * .07 = $21.84
Case 4: Tax A is not primary, it is not taxable, and it does not include surcharges.
Notice the choose button is disabled because it is not applicable in this case.
Assumptions for sample calculation:
Taxable charges = $300
Tax A is not a primary tax, it is not taxable, and it does not include surcharges. The rate is 7%
Tax B is a surcharge of 4%
Surcharge Calculation
Tax B = $300 * .04 = $12.00
Main Tax Calculation
Tax A = $300 * .07 = $21.00
Case 5: Tax A is not primary and it is taxable, and it includes surcharges.
By default, this tax includes its own surcharge in its taxable base.
Assumptions for sample calculation:
Taxable charges = $300
Tax A is a tax, and it is taxable. The rate is 7%
Tax B is a surcharge of 4%
Surcharge Calculation
Tax B = $300 * .04 = $12.00
Tax A = $300 * .07 = $21.00
Main Tax Calculation
Tax A = ($300 + $21.00 + $12.00) * .07 = $23.31
Case 6: Tax is primary and it is taxable. It also includes surcharges but it does not include its own surcharge.
To accomplish this, you would use the Included Surcharges screen and uncheck the Exemption Classification of the tax itself (outlined in red on both screen shots)
Assumptions for sample calculation:
Taxable charges = $300
Tax A is a primary tax, it is taxable and it includes all surcharges except itself. The rate is 7%
Tax B is a surcharge of 4%
Surcharge Calculation
Tax B = $300 * .04 = $12.00
Tax A = $300 * .07 = $21.00
Main Tax Calculation
Tax A = ($300 + $12.00) * .07 = $21.84