Setting up your tax rates

Introduction

This lesson will go over how to set up the tax rates for payments if you need to collect taxes on your services and products.

The actions described in this lesson require a Manager permission on your clinic.

To manage your tax rates, click on Tax rates under Billing > Settings in the top bar:

 

Managing tax rates in your clinic on Embodia

 

To add a tax rate, click on Add a tax rate and enter:

What does the Rounding behaviour setting do?

Because monetary values are limited to cents, tax percentages often produce fractional cent amounts that, after standard rounding, leave a total ending in $.01 or $.99. These totals can look odd to customers.

Here's a simple example. Consider a clinic charging 13% tax on a $100 service. If $100 is the pre-tax price, the calculation is straightforward:

$100 × 1.13 = $113.00

Now suppose the clinic wants $100 to be the tax-inclusive total. Working backwards, the pre-tax price would be:

$100 ÷ 1.13 = $88.49557…

Since that's not a valid monetary value, the clinic must round to either $88.49 or $88.50, but neither produces a clean result when tax is applied:

Neither option lands on the intended $100.00.

How Rounding behaviour helps

Setting Rounding behaviour to "Round to nearest dollar" automatically adjusts any total that falls exactly $0.01 away from a whole dollar amount, nudging it to that whole dollar. In the example above, both $99.99 and $100.01 would be adjusted to $100.00.

Totals that differ from a whole dollar by more than $0.01 (e.g. $100.02) are left unchanged.