- Subscribe to RSS Feed
- Mark Thread as New
- Mark Thread as Read
- Float this Thread for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
The state of florida rounds sales tax up. most sales systems round down by default. A sure way to get audited is to collect the wrong amount of sales tax. How can I make sure that square is rounding up whaen calculating the sales tax?
- Labels:
-
Accounting and Finance
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report
Hi there!
Square uses Bankers Rounding.
Bankers’ rounding affects the way tax is distributed across individual line items (e.g. apples, oranges) as well as the total tax for a payment. There may be rounding differences if you try to recalculate sales tax based on the total sale amount.
For example, you have 2 sales, each with a single item that applies an 8.75% tax rate. One sale is for $2.50 and another is for $10.00. Including tax, the sales total $2.72 and $10.88. So the taxable amount is $12.50 with $1.10 in tax collected. However, if you try to calculate the total tax collected by calculating $12.50 * 0.0875, you’ll only get $1.09 and think that the system overtaxed by $0.01.
For the most accurate tax advice, I’d suggest consulting a trusted tax advisor.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report
Hello, the Sales Tax in Massachusetts is 6.25%. On a charge of $170, which on a calculator comes out to $10.625, the Square invoice is rounding down to $10.62. I need it to round up to $10.63.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report
did you get resolution to this issue . NJ is the same 6.625% it rounds down in square. Im over this sales tax issue
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report