Sales tax adding an extra $0.17

[Lia2]

Hi all - trying to get my site up and running.  Turned on the sales tax for my state per my sales tax license info but when I add items to the cart the system is adding an extra $0.17 on top of the 7.95% sales tax for my state.  I have tried multiple products and get the same result every time 😞  Please help!

[Lia2]

This morning I tried removing the sales tax and re- adding it and its still happening.  I also checked the surcharges and customer fees sections and none of that is set up...  Here is a screen shot of whats happening.... maybe I am just missing something?

[Candlestore]

@Lia2 ;

So basically Square Online is adding 1.7% to your sales, if I am understanding this correctly.

I know here in Pa if you have a location within Philladelphia, the city taxes 1% on top of the States Sales taxes.  So if I had my store within 'city limits' my customers would get charged 7% instead of the 6% state tax.

I am wondering if you have something similar where you are located.?

My only other suggestion would be to Edit your Taxes and instead of letting Square Online calculate the Tax rate, set it at the 7.6% rate.  The issue with this is if Square is right and you should be charging an extra 1.7% sales tax because of the Area you are in, you will have to pay that out of your Pocket.  Since Tax laws are always changing and new taxes were created because of the economy and municipalities not getting enough revenue.  I would talk to your Local account or multiple accountants to see if there is an extra sales Tax % for your area now.  I am in Pa and do not know your Local tax regulations and am only refrenceing Sales Taxes I know of for my area.  

[RobynR · Accepted solution]

Hey @Lia2,

Thanks for reaching out to the Community.

It sounds like you have Tax Registrations enabled. This feature automatically calculates taxes for Square Online orders and shipping orders through Retail POS.

To remove a tax registration:

1. From your Account & Settings page, go to Business information > Sales taxes.
2. Under Tax Registrations, select Manage.
3. Delete on each state where you have a tax registration.

Learn more about creating and managing your sales tax settings.

I hope this helps. Please let me know if I can help you with anything else.

[Lia2]

Hi thank you for replying, I did what you said and now its not showing any tax. 😞

I do want to collect tax, its just not showing the right amount. 

[RobynR]

@Lia2 If you disable the tax registrations and have not set up sales tax, there will be no sales tax applied to your orders. If the tax registrations do not calculate the percentage, you can manually set up the sales tax.

To charge shipping and delivery taxes:

1. Sign in to your Square Dashboard and select Account & Settings > Business information > Sales taxes.

2. Under Shipping and delivery taxes, select Manage settings.

3. For Delivery sales tax, select Apply automatically generated tax rates or Use in-person rates for delivery sales tax.

4. Toggle on Apply tax to delivery fees if you want to charge your buyers a fee on delivery orders.

5. For Shipping and non-physical sales, select Apply automatically generated tax rates.  

6. Select Save.

If you use Square Online, you can also adjust your Square Online tax settings.

1. For Square Online Pickup sales, select Apply automatically generated tax rates or Use in-person rates for Square Online sales tax.

2. For Square Online QR code sales, select Apply automatically generated tax rates or Use in-person rates for Square Online sales tax.

After you set all your taxes, set your calculation method settings. These settings apply to orders for which you've selected to use automatically generated taxes.

1. For Calculation method, select Additive tax to add the tax as a separate line item on your customers’ receipts or select Inclusive tax to include tax as part of item prices

2. Select Save.

You can learn more about creating and managing sales tax settings here. 

[Lia2]

Hi @RobynR - I have tried this and its still wrong. Our tax rate is 7.6%  so the tax on my $10 purchase should be 0.76 but its still 0.97.  I thought maybe it was adding the shipping cost but its not as 7.6% of $15 is $1.14 tax.  Help 😞

[RobynR]

@Lia2 The tax registrations in Square automatically calculate taxes based on local and state laws, and these rates cannot be manually adjusted. However, because tax rates and rules can vary, we strongly recommend consulting a tax professional to confirm the accuracy of the percentage rate applied to this transaction.

[Lia2]

@RobynR   I totally understand that, however Square shows my tax rate as 7.6% so shouldn't it calculate it with that rate? Any idea why it might be calculating with a different rate?