---
title: "RRS — Taxes and royalties"
sidebarTitle: "RRS taxes and royalties"
description: "Sales tax reconciliation across five states, Ohio CAT tax, miscellaneous payables, and the BKC royalty and ad fund accrual for Rackson Restaurants (E01)."
icon: "receipt"
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

Four workpapers covering the RRS multi-state tax obligations and the BKC royalty and advertising fund accruals.

<Info>
  **Source:** `Rackson_Workpaper_Instructions.docx` — Part I, Taxes & Royalties.
</Info>

## 22200 — Sales tax reconciliation

**Owner:** Jeff / Betsy

Reconciles sales tax collected per SICOM (POS) against actual payments filed and the GL balance for acct 22200, by store and state — **NJ, OH, NY, MD, PA**.

<Steps>
  <Step title="Pull the SICOM sales tax data">
    Pull for the prior month and the current period (first day of the period through period end). Enter or confirm the amounts in the **SICOM DATA / SALES TAX COLLECTED** columns.
  </Step>
  <Step title="Enter the prepayments">
    Enter prior-month prepayments (vouchers such as `PAPP2604`, `OHTAX2604a`) and current-month prepayments (`OHTAX2605a`, `PAPp2605`) from the Intacct GL detail. The workpaper uses formulas pulling from the **GL Detail** tab — confirm that tab is refreshed with current period data.
  </Step>
  <Step title="Compare calculated to actual">
    The **CALCULATED BALANCE** column is the expected GL balance based on tax collected less payments. Pull the Intacct Dimension Balance report for acct 22200 and paste into the **GL BALANCES** columns (Opening, Period, Closing).
  </Step>
  <Step title="Investigate the variance">
    Review the **Variance Posted** column — any non-zero value indicates a difference between calculated and actual GL balance. Investigate and post an adjusting entry if needed.
  </Step>
  <Step title="Confirm quarterly filings">
    For states with quarterly returns (**Ohio, Maryland**), confirm whether a return was filed this period. Ohio CAT and Ohio sales tax are **separate filings** — coordinate with the 22250 workpaper below.
  </Step>
</Steps>

<Warning>
  **Marketplace facilitator tax is the most common source of an apparent variance.** Delivery platforms collect and remit sales tax directly to the state on the operator's behalf, and that must be backed out of Rackson's own liability calculation. See [Sales tax review](/internal/customers/rackson/review-process/sales-tax).
</Warning>

<Note>
  Sales tax collected per the POS is **not always the same figure used when the return is filed.** Understand the difference between "tax we calculated we should have collected" and "tax we actually remitted per the filed return" when explaining a variance — a difference between the two reflects normal over/under-collection at store level, not necessarily an error.
</Note>

## 22250 — Ohio CAT tax payable

**Owner:** Maureen

Calculates and tracks the Ohio **Commercial Activity Tax** at **0.26%** on Ohio-taxable gross receipts for the Ohio BK stores (**342, 368, 594, 652, 704**). Paid quarterly via the Ohio Gateway portal.

<Steps>
  <Step title="Pull gross receipts per Ohio store">
    Pull total gross receipts for each Ohio store for the period from RTI or the sales journal. Enter in the **Sales** column for each store.
  </Step>
  <Step title="Calculate the tax">
    CAT tax = **Sales × 0.26%**. Illustrative: Store 342 ($148,988 × 0.26% = $387.37); Store 368 ($258,992 × 0.26% = $673.38).
  </Step>
  <Step title="Post the accrual">
    Use `IMPORT_P5_OH_CAT_Tax.csv` — GJ to acct **22250** by Ohio store location. Use `IMPORT_P5_OH_CAT_Tax_Var.csv` for any variance adjustment.
  </Step>
  <Step title="File at quarter end">
    File the return on the **Ohio Gateway portal**. Confirm the current quarter due date before filing.

    <Warning>
      **Credentials are not recorded in this knowledge base.** The Ohio Gateway login for Rackson is held in the engagement's **permanent file** alongside the other client system credentials. Retrieve it from there.
    </Warning>
  </Step>
  <Step title="Record the payment">
    After filing: DR **22250** / CR **10105** (TD Operating). Confirm the acct 22250 balance returns to zero, or reflects only the next quarter's accrual.
  </Step>
</Steps>

**Files:** `IMPORT_P5_OH_CAT_Tax.csv` · `IMPORT_P5_OH_CAT_Tax_Var.csv`

<Note>
  On the close checklist this appears simply as **"CAT Tax"** on WD2 — distinct from sales tax (its own WD6 task) and from property tax.
</Note>

## 22350 — Miscellaneous payables

**Owner:** Chee

Schedules open miscellaneous payables **not in AP** — primarily the **McLamore Foundation** accrual.

<Steps>
  <Step title="Tie the balance">
    Confirm the GL balance for acct 22350 matches the workpaper total.
  </Step>
  <Step title="Clear paid items">
    If the remaining McLamore balance is paid, record DR 22350 / CR Cash and clear the line.
  </Step>
  <Step title="Add new items">
    If new miscellaneous payables arise — amounts owed that don't belong in AP — add them with date, description, amount, and expected payment date.
  </Step>
  <Step title="Confirm the treatment with Mike">
    Confirm whether the remaining McLamore balance should be accrued further or left as a payable pending final invoice.
  </Step>
</Steps>

<Note>
  **What this account actually holds.** Donations received on the client's behalf, largely through Burger King Corp, and paid back out to the intended charitable recipient. Detail lines include an accrual ("To accrue for Mclamore per Store") and offsetting bills to the **Burger King McLamore Foundation** and **Honor Flight Connecticut** — expect charity names rather than vendor names in the detail.

  Mike's team also tracks a version of this, so there is **duplication by design**. Don't spend time reconciling the two unless something has been sitting on the schedule for an unusually long time — then follow up with Mike directly.
</Note>

## 22400 / 22600 — Royalty and ad fund reconciliation

**Owner:** Maureen

Reconciles monthly royalty (acct **22400**, **5%** of net sales) and advertising fund (acct **22600**, **4%** of net sales) payments against BKC invoices by store. Produces the accrual import for periods when the invoice hasn't arrived.

<Steps>
  <Step title="Paste the BKC invoice detail">
    When the BKC royalty invoice arrives, paste the store-level line items into the applicable monthly tab (Dec, Jan, Feb — the workpaper accumulates history). Confirm store-level amounts match RTI sales × 5% (royalty) and × 4% (ad fund).
  </Step>
  <Step title="Accrue if the invoice hasn't arrived">
    Post the accrual using `IMPORT_P5_Royalty_and_Ad_Fee.csv` — GJ to acct **75600** (royalty expense) by store, DR Expense / CR 22400 or 22600.
  </Step>
  <Step title="Post variance adjustments">
    Use `IMPORT_P5_Adv_Var.csv` and `IMPORT_P5_Royalty_Var.csv` to post variances between the initial accrual and the actual invoice once received.
  </Step>
  <Step title="Reverse the accrual on receipt">
    When the invoice is received and the AP bill is posted, reverse the accrual — `REVERSEDATE` in the import = the period-start date of the next period.
  </Step>
  <Step title="Confirm the balances">
    Confirm accts 22400 and 22600 reflect **only the current period accrual** — prior periods should have been cleared by AP bills or reversals.
  </Step>
</Steps>

**Files:** `IMPORT_P5_Royalty_and_Ad_Fee.csv` · `IMPORT_P5_Adv_Var.csv` · `IMPORT_P5_Royalty_Var.csv`

<Warning>
  **Rates can vary by store.** Most locations run at the standard rate, but a handful of legacy locations run at a different percentage — roughly half a percent above or below — and additional quarterly advertising initiatives have historically been layered on for some locations.

  Watch specifically for **new stores opening mid-period**: they must be added to the sales/royalty worksheet, or their royalty and advertising accrual will simply be **missing rather than flagged as an error**.
</Warning>

## Related

- [Sales tax review](/internal/customers/rackson/review-process/sales-tax) — the marketplace-facilitator adjustment and the RCY prepayment nuance
- [Royalty and advertising review](/internal/customers/rackson/review-process/royalty-and-advertising)
- [NYC Commercial Rent Tax](/internal/customers/rackson/nyc-commercial-rent-tax) — the open multi-state tax question