x
Beta Member

Why am I being charged when the total amount is not what I charge the client the tax is the tax

  • Why should I have to pay extra money when taxes is going to be taken out for the state regardless of what I do but I just charge the customer my price and the taxes are taken out but I get charged for the full amount even though the taxes do not come to me so why should I have to pay extra money on those taxes too it's like I'm getting charged for what the state is taking out and add it to my total that's not the total I charge to client can somebody please explain to me why I am having to pay Square extra money when I do not have any control over the taxes and it does not become my total amount it's just taxes for the state I should be just made to pay for the money I charge the client not on top of the taxes already paid the state can anybody explain this to me because I feel like I'm being robbed of my money it might be little to some but it's a lot to me because I have a family to feed and I'm just getting off the ground and it seems like they're getting extra they say 2.9% Plus 30 cents and that's of the total with the tax state tax included so if that's the case they should let us charge a little extra state tax for a can cover the extra that square is charging me for I can get my exact amount that I charge the client and I shouldn't be made to pay for the state text being added on to my final cost that I give to a client it makes it kind of hard for me to give clients discounts when I'm getting charged with the extra and it's not even me charging for the Taxes 
  •  
289 Views
Message 1 of 2
Report
1 REPLY 1
Super Seller

Hello @PSRLLC77 thanks for your post. It took a while to get in sync with your train of thought...just a suggestion, if you use periods between your sentences it helps other people follow along with your thoughts. As far as your question...

 

I'm not sure if Square charges the tax on the item total, or the total including the sales tax. But either way, The sales tax is an extra fee that is paid for BY THE BUYER of your item. So even if Square's fee is taken before or after the sales tax, the total amount comes to pretty much the same. For example:

  • If you sell $100 and your State Sales tax is 5% = 105...and Square subtracts the 2.9% +.30  fee to the entire total. That equals = $101.66 you'd get in your bank deposit.
  • If you sell $100 and your State Sales tax is 5% ...and Square takes the percentage BEFORE adding the sales tax (which would be $96.8 minus the fees... you'd get $101.64 in your bank deposit.
    • That would be $96.8 then + 5% State Sales tax, and your total would be = $101.64

I am not a math wiz, but I think this is correct, sorry if it is not. In either case though, Square calculated the sales tax and adds that ON TOP OFF what your customer is paying you for your item. Square COLLECTS that Sales Tax for you, and submits that with your bank deposit. Then you are responsible for sending those State Sales Tax payments to your State's tax collection office.

 

I am not recommending this, but you can adjust your tax settings within your Square dashboard and TURN OFF sales tax for all of your items. However, please consult your State Sales tax office as this could be illegal and/or improper and you may lose your State Sales Tax license and could be charge with criminal penalties. BUT, if you turn off your sales tax, then Square will not be involved with your State Tax collection, but you will be responsible for separating out that sales tax money from you item prices. Turning off your sales tax will not add that item to your item's cost, so your customers will not be charged any state sales tax. You'd have to ADD an amount manually on top of your sales prices. And again, this is usually an improper method of State Sales Tax collection. Most taxing authority require the sales tax be a separate charge at the time of the sale, or if you INCLUDE sales tax in your selling prices, you must clearly state that to your customers (and then you'll have to still be responsible to sending tax payments into your collection agency.

 

I hope this might help with your question. Please see this link below for more info about Square and Sales Tax:

https://squareup.com/help/us/en/article/5061-create-and-manage-your-tax-settings

261 Views
Message 2 of 2
Report