I need to be able to put a sales tax cap on my sales

[AmandaKurdziol]

My borough has a 5% sales tax with a cap of $10. I cannot find a way to input this. I'd like the option to have an automatic cap so I don't have to worry about it. 

If I manually enter it in as another line item (after calculating it on a calculator) it wont show up in my reports on Square. Super frustrating. 

[RHatch]

There is not a way to put a Cap on tax with the Square Point of Sale app.  You might check out one of the tax apps like Tax Jar.  I think it may be the best solution for you.

[VanKalkerFarms]

There is no way to have a sales tax maximum. That is an interesting tax code I have never heard of. 

[AmandaKurdziol]

I know. I've never heard of this either, but after digging into our city's (small town really) tax code, they have a 5% tax with a cap of $10. Super annoying for business owners. 

[Russell]

Hi @AmandaKurdziol - welcome to the community. 

@RHatch & @VanKalkerFarms are right, there is not a way to manage this through Square Point of Sale. To manage this tax code, which admittedly sounds very unique, you will have to do so outside of Square Point of Sale.

I am curious if the $10 cap is per item or per transaction, also - how do other businesses in your county manage this tax?

[AmandaKurdziol]

I wonder this too. To be honest, I don't think anyone is actually doing this correctly. It only affects sales over $200 so for the most part many businesses are not charging this much. I also wonder if they are using a better system, perhaps QuickenBooks or the likes. I hate to have to leave Square but this is a time consuming problem for us.

[RHatch · Accepted solution]

This is very different.  a 5% tax and only on sales over $200 with a $10 max tax.   200.00 X .05 = $10.00.  Square will not allow you to put in a $ amount for tax.

I would create a category. "City Tax" and then an Item "City Tax" at $10.00  Then any sale at $200 or over you add this item.  You can then pull an item report for this item to pay your tax.

I may not be following you correctly.

[Russell]

@RHatch - I was thinking what you're thinking, but I too am unclear the specifics of this tax code. 🤔

[AmandaKurdziol]

Yes this is the conclusion I came up with too. 

[AmandaKurdziol]

However, I would really like it if Square would just make an over-ride feature so I can put in the dollar amount.

[RHatch]

FYI,  Quickbooks does not have the ability to set this tax automatically either.

[AmandaKurdziol]

Does or does not?

[AKWoodstoves]

This reply was created from merging an existing thread: I need to be able to put a sales tax cap on my sales

I need to be able to set a sales cap for taxes; we are at 3% only up to the first $500 in purchases. I read a thread about this, but it's from 2017 and I'm hoping the problem has been fixed.

[VanKalkerFarms]

unfortunately, this has not been addressed yet.  There are quite a few odd quirky sales tax laws that states and cities are passing that are different with caps, like this one you are addressing, and others that only kick in after a certain amount has been sold.