Sales tax and 1099K issue when using outside POS system with Square Stand for payments

[npreece]

Our restaurant uses another company POS system (Lavu), which is connected through the Square Stand/Square reader as we use Square as our payment processor. The Lavu POS system adds the sales tax to the customer check, so when the credit card payment is run, only the total check amount (including sales tax) is communicated over to Square. That's perfect for charging the card, but it also means that my Square transaction reports show the entire amount as gross sales and shows $0.00 for sales tax. Therefore I am trying to reconcile my 1099-K totals for the year with my Lavu POS transactions, so that I can provide the correct sales tax documentation to my accountant for offsets to the 1099-K. Since Square uses UTC transaction time, but no easy way to identify which of my 2018 transactions are excluded from the 1099K, it is proving to be quite a project. Is anyone else in the same boat, and how do you deal with it?

[Helen]

Hello @npreece! Gosh this is a tricky one. If it's any help - the transactions in your 1099K form only includes card payments and not cash sales. You might also give our CS team a call so they can take a closer look at your account set up to see if there's a way we can help reconcile your reports. 

[npreece]

Thanks for the reply. I will try contacting them. If I can find out which 2018 transactions were excluded from the 1099K due to the time cutoff, that would help.