Tax Question

[singasoulkitche]

Do I have to set up the sale tax for my product? Will this be reflected on the sales summary so I can keep track of what to file for next year's tax season? I have not set up anything and will it affect anything going forward?

[Thevioletfox · Accepted solution]

How you set up your sales tax and what's required of your business really depends on where you're located.  City, State, County, and Country!  I would recommend calling your local government office to find out what the sales tax rates are for each and where you're required to collect sales tax.  Once you know that, you can set up your sales tax in Square.  Square does keep track of taxes collected (as well as Gross Sales) in reports so that you'll know what to file for next year's tax season.

[dhicks]

I have set up my state and local sales tax rate of 8.735% in squareup.  I charge $10 and sales tax is included in the price.  When I test with an invoice, I see sales tax included but the amount is $0.80 instead of $0.87.  What am I missing?

[JJ_]

I was able to replicate this on my personal account and device @dhicks I believe this has to do with Square using Bankers Rounding but I suggest you get in touch with our Support team for them to look deeper into this for you. Please reach out by phone when you have a moment by logging into your Square account and heading here.