Sales tax

RMCPA — Sat, 20 Sep 2025 10:49:55 GMT

Hello, I am the external bookkeeper for a client who is using Square Virtual Terminal to process their transactions. My question is regarding the sales tax calculation. The correct sales tax for our county in Florida is 7.5%, and that is how they set it up in the Sales Tax settings. It appears however to be calculating the sales tax at 6.9767%, and I don't understand why. For example, a $3,600.00 transaction shows sales tax charged as $251.16 and Square Fees of $134.94. All of the taxable sales seem to show this way. Can someone please help me out?

Thanks!

Kristen

Re: Sales tax

crystalimages — Thu, 21 Apr 2022 16:26:50 GMT

I'm assuming you don't have direct access to their Square account? Have them double check the tax they set up is the correct amount.

We don't have state Tax, but we do have Resort Tax of 4% and it always calculates correctly for us.

Just looking at tax settings, do they have an exemption rule or tax included in item price?

Are you looking at individual transactions to see how the tax rate is calculated or are you taking the totals from the reports? If they have non-taxed items, it won't add up from just the reports.

We don't charge tax on shipping fees or service charges for auto-gratuity.

So if we take our total collected and extract 4%, we will pay more for taxes than we should.

We have to subtract the untaxed items first and then the tax on the report should be correct.

thread Sales tax in Payments Troubleshooting

Sales tax

Re: Sales tax