Labor rates let you charge customers by time spent completing a work order. By enabling taxes on labor items, you can also charge taxes as required by your jurisdiction.

Enabling the Service module

To set labor rates and taxes, you must first enable the Service optional module. If you already enabled this during your initial setup, skip this step.

1. Navigate to Settings > Optional Modules under Advanced setup.

   

2. Toggle Service to on.

   

3. Click Save Changes.
4. Log out of Retail POS, then back in.

You can now access the Labor menu button from in your register and the Service settings from the main menu.

Setting a labor rate

Set a labor rate in your location settings to charge customers for time spent completing their work order.

1. Navigate to Settings > Locations.
2. Click Customize beside the location to customize its labor rate.

   

3. Within the shop location, click Settings.
4. Enter the labor rate per hour in the Service Rate ($/hour) field.

   

5. Click Save Changes.

Enabling labor tax

This setting taxes labor charges at the same rate as your sales tax. If your labor charges are taxed at a different rate, you need to apply a custom labor tax rate instead.

To enable labor taxes for a shop location:

1. Navigate to Settings > Locations.
2. Click Customize beside the location.

   

3. Within the shop location, click Settings.
4. Under Tax Setup, click the Tax Labor/Service checkbox.

   

5. Click Save Changes. This automatically creates a Labor tax class under Settings > Tax Classes.

Applying a custom labor tax rate

If your labor charges are taxed at a different rate than your items, you'll need to create a labor tax class with a custom tax rate.

1. Navigate to Settings > Tax Classes.
2. Click + New Tax Class.

   

3. In the Class Name field, enter a name for the tax class.
4. Click the Service line item toggle.

   

5. Click Save Changes.
6. From the main menu, click Settings > Sales Taxes.
7. Find the location needing a custom labor tax rate, and click the Tax name.
8. From the Class dropdown, select your labor tax class name.
9. In the Class Tax Rate field, enter the custom tax rate.
10. Click + Add New Rate.

What's next?