When it comes to sales tax, you may wonder why the total tax collected by the system is slightly more or less than what you would expect if you just multiply your total sales by your state tax rate. Rounding can cause this to vary up or down slightly depending on your product mix.
Thr!ve calculates, collects and rounds tax amounts on a per item basis -- this is because each item can have a different tax structure. You may charge different tax rate for a retail item vs. a food item vs. a beverage item.
For example, if you have an item that is $8.50 and the tax is 6.75%, the tax on that is $.573. Thr!ve will round that to $.57.
If 10 of these items were ordered over the day, the total sales are $85. If you calculated 6.75% on $85, you'd get $5.737, which you may round up to $5.74. But when you check your tax report .57 x 10 is only $5.70 in tax collected.
This usually evens out based on your product mix. Other items are going to round up, getting you close to even at the end of the day. But if you order a lot of the round down items and fewer of the round up items, you may notice a small effect.