thread Re: Sales Tax in Archived Discussions (Read Only)

Sales Tax

SerhWyatt — Tue, 08 Nov 2022 06:53:02 GMT

Hello, I am curious to how Square pays sales tax for taxes collect. I have the tax set up to collect 10.5% on each transaction, but I am not sure where this 10.5% goes. Is it collected and deposited into my account, in which I am required to pay the tax myself? I am in Arkansas, so any insight into this question in particular to Arkansas would be a big help. Thanks!

Re: Sales Tax

VanKalkerFarms — Tue, 08 Nov 2022 13:36:58 GMT

yes, Square simply processes the total you are charging on a credit card as one lump sum. They then deposit your sale, minus their fee into your account. It is up to you to file your sales taxes monthly or quarterly etc depending on the state you are in. It is basically the same as selling for cash where you have to keep track of the sales tax part of each sale.

Re: Sales Tax

DinaLRosenberg — Tue, 08 Nov 2022 14:26:47 GMT

There are 3rd party services you can pay for like DAVO (what we use) which will take the sales tax liability you collect daily- hold it in escrow, and then remit your taxes for you. It's a pretty affordable option that saves tons of time.