When you first sign into your Retail POS account, you will set up sales taxes for your locations. If you sell services, you will also need to enable the Service module and set labor rates and taxes.

Enabling the Service module

To charge customers for services in a sale or a work order, you need to enable the Services module.

1. Navigate to Settings > Optional Modules.

   

2. Click the toggle beside Service to enable the Service module.

   

3. Click Save Changes.
4. Sign out then sign back into Retail POS. You will now have access to the Service module and can access the Labor menu button in your register and Service in the main menu.

Enabling labor tax

You can enable and set a specific labor tax for your location. By enabling the Tax Labor/Service setting, a Labor tax class will automatically be created under Settings > Tax Classes.

1. Navigate to Settings > Locations.
2. Click Customize next to the location you want to enable labor tax for.

   

3. From the submenu, click Settings.
4. Under Tax Setup, click the Tax Labor/Service checkbox.

   

5. Click Save Changes.

Enabling this setting will tax labor charges at the same rate as your sales tax. If your labor charges are taxed at a different rate, refer to the Applying a custom labor tax rate section of this article.

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 that has a custom tax rate.

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

   

3. In the Class Name field, enter the name you wish to use for the tax class. For example, "Service".
4. Click the toggle beside Service line item. This will ensure the tax class is identified as a labor tax class.

   

5. Click Save Changes.
6. From the main menu, click Settings > Sales Taxes.
7. Click the sales tax of the shop that requires the custom labor tax rate.
8. From the Class dropdown, select your labor tax class name.
9. In the Class Tax Rate field, enter the custom tax rate of your labor tax.

   

10. Click + Add New Rate.

Setting a labor rate

In your location settings, you can set this labor rate to automatically charge your customers based on the amount of hours and minutes you enter in your work orders.

1. Navigate to Settings > Locations.
2. Click Customize next to the location you want to set a labor rate for.

   

3. From the submenu, click Settings.
4. Enter the labor rate per hour that you charge at your location in the Service Rate ($/hour) field.

   

5. Click Save Changes.

What's next?