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Yorlli87

Does Square file and pay the state sales tax for my business?

Hi, 

 

I have a store in the state of Florida, I collect taxes and I am required to file taxes quarterly, do I have to do something in order for square to file them for me? Or do square file them for me automatically?. I just want to make sure that I don't have to struggle by keeping record of each item I sell and save the information for taxes. 

 

Thanks 

Message 1 of 16
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15 REPLIES 15
Ron Super Seller

Re: Does Square file and pay the state sales tax for my business?

You would be responsible to file and pay your own sales tax. Square doesn't file them for you. 

Message 2 of 16
8,415 Views
Royalsmokebbq

Re: Does Square file and pay the state sales tax for my business?

Then what happens to the tax money that is deducted from my CC transactions?? If I charge a customer $1, SQUARE will only deposit $.93 so that money is going somewhere.......

Message 3 of 16
8,394 Views
Russell Square

Re: Does Square file and pay the state sales tax for my business?

Hey @Royalsmokebbq - it sounds like your are confusing processing fees with sales tax. We charge a fee on all funds paid by credit card. It is up to you to collect and pay taxes for your business. 

Message 4 of 16
8,370 Views
Vivosity

Re: Does Square file and pay the state sales tax for my business?

At least these days, this response is incorrect. Square collects sales tax and deducts them from proceeds in addition to processing fees. What happens to these sales tax funds? How do we access them to pay the appropriate states or does Square do that for us?

 

Proof:

https://www.amazon.com/photos/share/D9yyY2wxzA5W13UXwNIl3rNmDN3xLdyxv6UiKjrsuc5

 

Message 5 of 16
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Vivosity

Re: Does Square file and pay the state sales tax for my business?

After further review, here's what's going on. The original response was correct, but not particularly helpful. Square REPORTS to me what the sales tax was (based on what I asked them to consider taxed). They remit to me the total collected minus processing fee to my bank. Square probably then reports to the taxing authority what they recorded as the sales tax, but does not handle the sales tax funds. They only seem to handle the amount reporting to me and to the taxing authority without managing sales tax funds.

Message 6 of 16
5,675 Views
katieand Alumni

Re: Does Square file and pay the state sales tax for my business?

Hi @Vivosity - Square only collects sales tax on your items if you set it up in your settings. Here's more info on how to set this up and collect sales tax which you then pay: https://squareup.com/help/us/en/article/5061

Message 7 of 16
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Royalsmokebbq

Re: Does Square file and pay the state sales tax for my business?

This reply was created from merging an existing thread: “Does SQUARE actually pay the collected tax, or should I be paying it?” 

I'm just curious if the state tax is actually being paid or should I be mailing off a check every quarter

Message 8 of 16
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RHatch Super Seller

Re: Does Square file and pay the state sales tax for my business?

Tax is your responsibility.

Message 9 of 16
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Tnvolsgal

Re: Does Square Payroll pay my quarterly state taxes electonrically?

I’m an individual with no employees for payroll. Is there a way to have square take taxes out of my weekly deposit to pay for my taxes? Just curious thank you 

Message 10 of 16
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