Processing Fee on taxable and nontaxable services

[wsteinhoff]

Hi,

I'm new to square and have a question on the surcharge for credit cards.  We offer taxable and non-taxable services to our customers.  When calculating the sales tax percentage does square handle this like the example below?

Example: Individual goes to Grocery Store and purchases exempt food items in the amount of $65 and taxable items in the amount of $28. Individual pays using a credit card. Grocery Store charges Individual a 2% "swipe" fee on the $93 total selling price. Grocery Store's taxable receipts are determined as follows:

Selling Price of taxable items $28.00
"Swipe" fee on taxable items ($28 X .02) 00.56
Taxable Receipts $28.56

Thanks,

Woody

[Candlestore]

@wsteinhoff 

In Pa we do not charge Sales tax on food so we do not charge it on our Fudge. So as you can see below Fudge has a Tax by Square of $0.00 because we have sales tax turned off in Square.

Candles we charge sales tax on, and is turned on in Square at 6%.  As you can see on the candles Square charged the 6% sales tax for each Line item at their Discounted rate and not the full price.  The Metal Sign was charged at 6% sales tax on the Full price. 

Square charged me 2.6% plus $0.10 for this transaction which totaled the $1.57

The total collected was $56.54 (Net Sales plus all tax $53.84+$2.70) which is what Square basis the 2.6%. (2.6% because it was a Dipped Transaction) 

56.54 x 2.6% = 1.47 plus the .10 = $1.57 total fees I paid for this one transaction which had both taxed and a non taxed item.

If I was not able to answer your question maybe you can look at this spreadsheet and the attached receipt to calculate what it is you want to know.