Question on Sales Tax

[Srithon]

Square calculates the sales tax but minus the fees, does all the money go to our account on a sale? We pay to the state gross sales per month and things will get complicated if square sends that 6% to Virginia State. Does Square do that?

[TheRealChipA]

Hi @Srithon.  Square does not do that.  All Square does is calculate the tax, which is then part of your daily deposit.

Regards,

[Candlestore]

@Srithon ;

From a CC sale of $100.00 for example, you may have 6% sales tax so your total sale will be $106.00 through Square.

Item Sale - $100.00

Sales Tax -  $   6.00

Total processed through Square 106.00.

Squares fees for simplicity here say is $3.00

So Square will deposit to your account $103.00.  SO for all US states beside some parts of WV square will have you pay your tax authorities.

Here is from Square:  "Where applicable, West Virginia sales tax is being paid for the customer on certain fees which are subject to taxation in West Virginia."

[DinaLRosenberg]

The best thing we ever did was immediately sync our Square Account to DAVO. Davo takes our sales tax liability every weekday. They calculate the tax liability and move it over to an account, and then file the taxes on our behalf. If there is a credit, (usually there is) it is returned to us.

This saves us TONS of time, administration and worry that we won't have the money to pay sales tax- it's out of our account the next day.

We have been using them for 5 years and never had an issue. We also went from being a quarterly to a monthly filer and STILL have never had an issue.