How sales tax is calculated
What ezCater uses to calculate tax
For each order, ezCater calculates sales tax using:
The delivery or pickup location (state, county, city, special districts)
Applicable state and local tax laws
Taxability rules for:
Food and beverages
Delivery fees (taxable in some jurisdictions, not in others)
Other charges (where applicable)
You do not have to set tax rates manually for ezCater orders. ezCater uses a tax engine and jurisdictional rules to determine:
Whether a charge is taxable
What tax rate applies
What shows on the customer receipt
Customers see:
Food subtotal
Delivery fee (if applicable)
Sales tax (combined tax amount)
Tip (if added)
Tax is broken out as Sales Tax on the customer’s receipt.
Sales tax remittance
Who is responsible for remitting (sending) sales tax to the state or local authorities can vary by jurisdiction.
Marketplace facilitator rules
In some states, ezCater may be treated as a marketplace facilitator. In those states:
ezCater may be responsible for collecting and remitting some or all applicable sales tax
The portion ezCater remits will not be passed through to you in your payments
In other states, the restaurant partner may remain responsible for remitting the tax ezCater collects on your behalf.
Because these rules are complex and vary by location ezCater shows you:
How much tax was collected from customers
How much tax is passed to you for your own remittance
To learn more about sales tax remittance in your specific state, read this article
Where to see sales tax on your payment reports
When viewing a payment in the Partner Portal, each payout includes tax information. You may see two different tax‑related values under "Sales tax":
Sales tax collected
The total amount of sales tax collected from customers for the orders in the billing cycle
Sales tax remitted
The part of that tax ezCater withholds from your payout because we are responsible for remitting it (per marketplace tax rules)
This shows as a negative line item and is not money you owe - it’s simply tax that ezCater will file and pay to the state/local jurisdiction for you
You should work with your tax advisor to determine:
When and how to report and remit these amounts
How to handle multi‑state, multi‑jurisdiction situations if you operate in several areas
Tax‑exempt orders
Some customers (for example, certain nonprofits or government agencies) may qualify for tax‑exempt status.
How tax‑exempt status is handled
If a customer is approved as tax‑exempt with ezCater:
ezCater will not charge sales tax on eligible orders for that tax‑exempt account
The order totals you see will not include tax, and no sales tax will be remitted or passed through to you for those orders
The orders will be flagged as tax-exempt on the order details page where you will also be able to access and download a certificate of exemption
You should:
Treat these orders as tax‑exempt in your own records and apply tax exemption to the order in your POS as needed
Keep in mind that tax‑exempt eligibility is based on documentation reviewed by ezCater for that customer
If a customer ever contacts you to request tax exemption, direct them to ezCater Customer Service
Taxes FAQ
Where do I see how much tax was charged and how much I received?
In the Financials tab of the Partner Portal:
Open a specific payment by clicking "View Details"
Look for:
Sales tax collected (total tax paid by customers)
Sales tax remitted (the portion passed through to you)
For order‑level details, download the payment order report to see tax amounts per order.
Do I set my own tax rates in ezCater?
No. ezCater uses its own tax system and jurisdictional rules to:
Determine tax rates
Decide which components of the order are taxable (food, delivery fee, etc.) based on local law
You do not need to manually set or maintain tax rates for ezCater orders.
Are delivery fees taxable?
It depends on the jurisdiction:
In some places, delivery fees are taxable
In others, they are not
ezCater’s tax engine applies the correct rules based on the delivery or pickup location. You will see the combined tax amount on the order and in your payment reports.
How are tips treated for tax purposes?
Generally:
Voluntary tips are not subject to commission
Tips are usually not included in the taxable base for sales tax calculations
However, tax laws can vary by state and locality. ezCater calculates tax according to applicable rules, but you should confirm how tips are treated with your tax advisor.
How are taxes handled for Online Ordering vs Marketplace?
For Marketplace orders, ezCater calculates tax and may remit some or all tax directly in facilitator states, passing any remaining amounts to you.
For Online Ordering, ezCater also calculates sales tax based on the order’s jurisdiction and applies marketplace‑facilitator rules where required.
In both cases, tax behavior (how much is collected, how much is passed to you) is visible in your order reporting.
Does ezCater provide 1099‑K forms for income taxes?
The Tax team automatically sends 1099-K forms to all eligible partners each year; not every partner will receive one
Eligibility is based on annual sales thresholds set by the IRS and each state. If a partner doesn’t meet their state’s threshold, they won’t receive a 1099-K from ezCater
Partners who don’t qualify can still download year-end sales reports in the Partner Portal for records and tax prep
Please reach out to [email protected] with any questions or clarifications needed on tax for your restaurant