I use 6% sales tax but the computer calculates less than 6%.

[Jessiebell0507]

My items say 6% sales tax but once the transaction is finished and I calculate 6% it is different than what the square app charges the customer. It's over 5% but not quite 6%. Help please!

[VanKalkerFarms]

Can you give an actual example of a transaction and the amount purchased, the amount of tax collected and the total charged for the transaction?  with a transaction, it will be easier to see what is going on.

[Jessiebell0507]

Sure, this is how my sale reads...

Accent balayage $55

retouch $50

Haircut with color $15

babyliss iron $39

Color care shampoo $24

Color care cond  $24

opening post card -$5

subtotal $202.00

Sales tax 6% $5.09

total 207.09

the babyliss iron, color care shampoo and color care cond are all taxable retail items

[VanKalkerFarms]

looking at those numbers I can't make any combination work out right to even get that tax.  with that coupon, in there I think that is part of the issue but it still doesn't work out right with or without it.  (39+24+24) *.06 is 5.22 . (39+24+24-5) *.06 is 4.92.   

@Kpay maybe you can see something i'm missing.

[VanKalkerFarms]

The other half of VanKalkerFarms here. 🙂 The coupon is the issue. Square takes the $5 discount and spreads it between all the items on the sale, creating a discount of about 2.42%. That makes the actual total of the three taxable items $84.90 ($87 x .9758). 6% of that is $5.09. 

[Tom]

Hey @Jessiebell0507, wanted to check in on something: are you trying to use the tax feature to add a surcharge to the sale (e.g. so that the customer pays the transaction fee)? If so, that may explain why the numbers don't match up perfectly. We do not have a surcharge option built into the app. More information here: Can I Apply a Surcharge to Square Sales?

[Jessiebell0507]

We do not use surcharge for any service or product. I checked  back thru the system and made sure every retail item had the 6% sales tax button on and they all did. I can't come up with a reason the tax is off. I've tried different combos and nothing adds up. 

[Tom]

Hmm... That does sound odd, @Jessiebell0507.🤔 I would suggest sending an example payment of this to our Support Team — they'll be able to take a look behind the scenes and escalate if necessary.

[Jessiebell0507]

Sounds good, thanks for your help. 

[VanKalkerFarms]

Well, I don't know how I didn't think of the coupon being spread over all the items as that is standard.  good thing I have my wife to go behind my answers to correct them. 🙂