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Florida Sales tax rounding up

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?

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Square Community Moderator

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.
 

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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.

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did you get resolution to this issue . NJ is the same 6.625% it rounds down in square. Im over this sales tax issue

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