Does square take out the taxes and pay them for you on transactions you ring in??

[Candy1200custom]

Does square take out the taxes and pay them for you on transactions you ring in??

[EJ_]

Hi @Candy1200custom

While it would be a great convenience for sellers if this were the case, unfortunately you're responsible for collecting and reporting taxes for your payments. 

You can create your own taxes within the Square Dashboard or Point of Sale app. Check out this article for more information around this: 

Modify Your Tax Settings

Also, with tax season right around the corner, check out this article that might help out as well: 

Square Tax Reporting and Form 1099-K Overview

[Hoosiers1987]

Where does that money go ? Is it already in AZ revenue pockets ? I can’t believe nobody discussed where this money go’s ....I am trying to do 2019 taxes and M lost in who has this money

[isabelle · Accepted solution]

Hey @Hoosiers1987-

Thanks for posting in the Seller Community.

So it sounds like you set up a sales tax for 2019 to be able to track how much you're collecting in sales tax from each sale. We do not keep these funds. We transfer the gross sales to your linked bank account or debit card, which includes taxes and tips collected on sales if they were charged on a card. This excludes our transaction fee of course.

As a Square seller, you are responsible for paying the taxes, likely with the tax money you collected. We allow sellers to create a sales tax in the Dashboard for tracking purposes.

The amount and transaction count on your 1099k (if eligible) is calculated based on your gross sales on the transaction date of the sales. This includes revenue from card payments that were refunded. Let me know if you have any questions about this! 

[casey12co]

Can square takes quarterly taxes out?

[Joe]

Hi there, @casey12co 👋 Thanks for reaching out to us here on the Seller Community!

I've gone ahead and merged your post into an existing thread of Sellers who were also asking this question regarding quarterly tax reporting. Take a look at this Best Answer from Isabelle! She will provide all the details you need.

Let us know if you have any clarifying questions! 

[Ranghand]

I never received any money from Square and was never contacted about the build up of funds. Now I have to report all my sales figures and pay taxes, how can I see a report?

[nika]

Hey @Ranghand. If you login to your Dashboard, you can check out your Sales Summary Report and sort by any time frame you need to.

[Fkzthefeds]

Square will report your earning to your state IRS and Gov. They take no responsibility other then making sure the socialist governments get theirs.

[aem_a]

What if you are a service provider? I'm considering adding products in 2021. Would adding a sales tax option in the dashboard make my clients pay that upcharge on their services as well, or does the app keep "items" separate from "service"? 

[JJ_]

Hey there @aem_a 👋

When adding Sales Taxes to your account you are able to exclude any items or services that are not subject to taxes. In regards to which should have taxes or not, I suggest you consult with a tax professional on this. 

In case you need it here are the steps to configure your sales tax from the Square Point of Sale App: 

1. From the navigation bar at the bottom of your screen, tap More.

2. Tap Settings > Checkout > Taxes. 

3. On a mobile device, tap the + icon in the top-right corner. On a tablet, tap Add a New Tax. 

4. Enter the tax information and toggle on Enabled to automatically apply this tax at checkout. 

5. Tap Applicable Items to choose which items this tax will automatically apply to. Toggle on Custom Amounts to apply this tax to amounts entered at the time of a sale.

6. Tap the back arrow > Item Pricing. Select if this tax will be included in item prices or added to a price at the time of sale.

7. Make sure to save your updates.

And here's how to do it online on your Square Dashboard:

1. Visit Account & Settings in your online Square Dashboard > Business > Sales taxes.

2. Click Create a tax.

3. Choose a location or locations to apply the tax to and click Done.

4. Enter the tax name, rate, and click All items to apply the tax to all items in your library or select specific items.

   Note: You can choose to Add Tax to Item Price, which adds the tax as a separate line item to the price or Include tax in item price, which shows one amount – the combined sales tax and item price.

5. Click Save.

You can also view your taxes from the item level:

1. Visit Items in your online Square Dashboard.

2. Click on an item to bring up the item details page. If taxes have been applied to an item, they will be listed under Sales Tax.

3. If there is no sales tax applied, click Account & Settings > Sales Tax to get started.

Note: Taxes will automatically apply to sales where a custom amount is entered. To disable taxes for custom amounts visit your tax settings in the Square app.

I hope this information is helpful!I