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 

[SparksS]

So I own a restaurant type business and we are collecting sales tax from our customers.  We use square payroll - does square automatically pay your sales tax to the government or do I need to do that separately?  

[pessosices]

Hey @SparksS 

Square Payroll only takes care of payroll related taxes, not your sales tax. You would have to take care of Sales Tax on your own

[Thyme4AllSeason]

I would love for Square to place my sales tax amount into my second bank account for me with each deposit made (instead of the gross amount).  I would be less complicated to pay my sales tax each quarter.  This is done for my daily loan payment, so I think it could be very possible for the sales tax collected.  

I can file the report on my own to my state agency, but having the funds separated would be ideal.

[collinsandcoupe]

This is sort of possible, you can open a Square Savings account and set a percentage to save from your daily sales. We set 8%, so when taxes are due every quarter we have at least that much set aside. It's been a great feature to have and is fairly new so you may not know about it yet.

[pscarbrough]

Does Square take out State & Federal Taxes?  If so, will they send it to you?

[JJ_]

Hey there @pscarbrough If your question is related to the Sales Tax included in the daily transactions for your business then, yes. Once we charge your client or customer we will deduct our processing fee and then transfer the rest of the amount to your Square Balance this will include your earnings and the amount of tax that was charged. 

Here is a visible example:

Item price: $100

Sales Tax: 6.5%

Item Total Price: 106.50

Square Processing fee for Card Present Transactions (2.6% + .10 cents): $2.87

Net Total: $103.63 - This total includes your earnings and your Sales Tax.

I hope this information is helpful!

[slap714134]

I am being charged fees for State Collected Sales tax .... Is anyone else experiencing this?   OR has anyone dealt with this issue ..... and how to remedy this issue ..... I contacted Square but have had no response  .... 😕 

[TheRealChipA]

@slap714134 I’m assuming that you collect the sales tax on all sales, either by card or cash, and that you regularly file a sales tax return and remit that sales tax?  If so then, yes, fees for card tenders are based upon the entire amount of the transaction — sales, taxes and tips.  That is an industry standard because Visa/Mastercard etc charge Square fees on the entire amount of the transaction.

This is one of the reasons that I add 3% to my cost of goods calculations when I’m determining menu prices, especially now (post-lockdowns) that my card/cash has increased from 50/50 to 80/20.  Also, in my case, it helps that my state (Kentucky) gives me a timely-filing rebate on my sales taxes.

This is just one of those costs of accepting card payments.  There is no remedy because it is the way things are done everywhere.

[jashley200]

Sales tax is rolled up into my pricing, but Square simply stopped calculating it at the time of sale.  Now my total sales show no sales tax, so total sales are over inflated by 7%.  I called customer service and explained that I need the dashboard fixed for sales in the last 45 days (about 12 transactions).  They refused to fix the sales from the last 2 events to reflect the 7% sales tax I pay to the state. This glitch now forces me to pay higher sales taxes to the state on gross total sales that are over inflated by 7%, higher income taxes to the state and federal government for income that is 7% higher also. So I am losing 7% of my sales on 3 different occasions because they refuse to fix it.  On my phone, the correct buttons are highlited.  But they reviewed the sales and can "only conclude that sales tax was not enabled" so we can't fix your mistake.....   My phone shows everything is working!  I'm not asking for money, I'm not asking for anything illegal, and its on sales from the last 45 days (maybe 12 transactions), but you can't fix this?  I'm am furious.  Telling everyone to switch to a POS vendor that has real customer support.  Not just chat bots.

[sayra]

Hello, @jashley200.  

We completely understand your frustration, and we sincerely sorry for the inconvenience this has caused. Your concern is absolutely valid. 

We regret that you've had this experience with our customer support, we'd be happy to look into this case further as your feedback is crucial. While we can't provide an immediate solution we'd be happy to look into the case in detail. 

We genuinely appreciate your patience and your understanding during this frustrating time. We will make sure to provide more details if we have them. 

[sayra]

Hello, @jashley200. 

We truly empathize with your frustration and disappointment in this situation. It's deeply concerning to hear about the challenges you've faced with our sales tax software, and we can imagine how frustrating and stressful this experience has been for you, your concerns are valid.

We appreciate your understanding of the situation. Currently, our Square system lacks a method to rectify sales taxes in cases similar to this one. There isn't a way for us to monitor the specific toggling of settings on the mobile device and Square Online Dashboard at a given time. However, we want to assure you that if this issue were a known one, our Square engineering team would have been alerted. We have confirmed that you've rectified the sales tax settings since then. We genuinely wish there were more we could do, and please rest assured that if there were additional steps we could take, we would certainly do so. Your understanding is greatly appreciated.

[Candlestore]

@jashley200 ;

Make sure in your Square Dashboard under Account & Settings > Business Information > Sales Taxes > then the tax that you have included in your Price.... If you get a Screen similar to the one below make sure you check the slider that Taxes are INCLUDED in the price.  That is usually the step some people forget or miss, the slider is circled in red below.