Does Square file and pay the state sales tax for my business?

[Yorlli87]

Hi, 

I have a store in the state of Florida, I collect taxes and I am required to file taxes quarterly, do I have to do something in order for square to file them for me? Or do square file them for me automatically?. I just want to make sure that I don't have to struggle by keeping record of each item I sell and save the information for taxes. 

Thanks 

[Ron]

You would be responsible to file and pay your own sales tax. Square doesn't file them for you. 

[Royalsmokebbq]

Then what happens to the tax money that is deducted from my CC transactions?? If I charge a customer $1, SQUARE will only deposit $.93 so that money is going somewhere.......

[Russell]

Hey @Royalsmokebbq - it sounds like your are confusing processing fees with sales tax. We charge a fee on all funds paid by credit card. It is up to you to collect and pay taxes for your business. 

[Vivosity]

At least these days, this response is incorrect. Square collects sales tax and deducts them from proceeds in addition to processing fees. What happens to these sales tax funds? How do we access them to pay the appropriate states or does Square do that for us?

Proof:

https://www.amazon.com/photos/share/D9yyY2wxzA5W13UXwNIl3rNmDN3xLdyxv6UiKjrsuc5

[Vivosity]

After further review, here's what's going on. The original response was correct, but not particularly helpful. Square REPORTS to me what the sales tax was (based on what I asked them to consider taxed). They remit to me the total collected minus processing fee to my bank. Square probably then reports to the taxing authority what they recorded as the sales tax, but does not handle the sales tax funds. They only seem to handle the amount reporting to me and to the taxing authority without managing sales tax funds.

[katieand]

Hi @Vivosity - Square only collects sales tax on your items if you set it up in your settings. Here's more info on how to set this up and collect sales tax which you then pay: https://squareup.com/help/us/en/article/5061

[Royalsmokebbq]

This reply was created from merging an existing thread: “Does SQUARE actually pay the collected tax, or should I be paying it?” 

I'm just curious if the state tax is actually being paid or should I be mailing off a check every quarter

[RHatch]

Tax is your responsibility.

[Tnvolsgal]

I’m an individual with no employees for payroll. Is there a way to have square take taxes out of my weekly deposit to pay for my taxes? Just curious thank you 

[Helen]

@Tnvolsgal Great question! There isn't a way to have Square deduct sales tax from your deposit at this time. 

I moved your post here so we can track interest in a feature like this, I do see how it would be very useful! 

[Thebarber1109]

Hi I’m a barber in texas. I was wondering if I need a sales tax permit when handling customers credit card transactions. Since I’m taking taxes out for each transaction

[EJ_]

Hi @Thebarber1109

While I can help out with setting up your Square account to collect taxes, I'm not able to help with tax specific advice such as local laws round permits and tax reporting itself. 

Hopefully a fellow Texas seller can chime in, but if not you'll want to check in with a local tax advisor for the best answer to your post. 

[TheEpicWPB]

In the feature request department, anyone who can handle reporting/paying sales tax to the byzantine Florida Revenue Department would be worth their weight in gold.

[Sassijams]

I would like a feature like that and while I’ve been using square fir a very long time, I’m goi g to be searching for one that will collect and remit taxes on my behalf. Etsy and other online selling platforms do collect sales taxes and remit it to the proper states on my behalf for my online orders so I’d like to find a point of sales company that can do it for my in person sales as well. 

[JJ_]

I understand and value your needs @Sassijams. I will pass this feedback over to our product team for their visibility and consideration in the future. I recommend you submit a Feature Request here. This will also help our product team get visibility and track other Sellers' interest in your request.

Important: When submitting a request, make sure to include the desired feature, and provide the details of how this feature will help your business succeed (how would you use it and what you expect from it).

[sarahm2]

I would much prefer for Square to remit the sales tax like Etsy does.

[_Violet]

Hi @sarahm2 - I see this is your first post in the Seller Community so I'd like to officially welcome you! 🎉👏 I'm happy to provide you with some more info on Square's tax reporting tools.

The IRS requires Payment Settlement Entities, like Square, to report the payment volume received by U.S. account holders. A Form 1099-K is the information return that is given to the IRS and qualifying customers. If you'd like to see if your business is eligible for a 1099-K form, please review the qualifications listed in this Support Article.

I hope this information is helpful but please do let me know if you have any additional questions.

[sarahm2]

Thank you so much! I do understand that. I was speaking to sales tax.  Etsy not only collects but also forwards to the state.  It would be lovely if Square would do that one day. 🤞😊

[meganbstack]

This reply was created from merging an existing thread: State and local tax charges to clients

Hi, I’m a fairly new small business owner. I have no idea what I’m doing most of the time and I’m learning as I go. So when I charge state and city taxes to my clients, are those taxes automatically sent to the state and city or is that something I have to submit. 

[VanKalkerFarms · Accepted solution]

no, that is something you have to do as a business owner.  every state has different reporting requirements too, some are monthly, some are quarterly, etc.  so you will have to get some advice and do a lot of searching for the exact requirements for your jurisdiction.