Taxes: Need to charge a city tax, subtotal, then charge state tax on those amounts added together

[omaha]

I asked Square support and they couldn't help.

Our city charges a 2.5% Occupation Tax. But then the city/state charges their 7% on the item price plus that Occ Tax included. There doesn't seem to be a way to charge tax, subtotal, then charge the additional tax.  Example:

$4.99 item

$0.12 Occ Tax 2.5%

$5.11 Subtotal

$0.36 City/State Tax 7% (on the subtotal)

$5.47 total

Currently we charge the 2.5% and the 7% but that way we lose a few cents each transaction.  I would combine the taxes into the effective total rate, but I can't see how to turn off visibility to the customer of the % rate (and I think people will start questioning if they see 9.6% tax on their receipt).

[EJ_]

Hi there, 

You'll want to change the settings of your tax setup within the Point of Sale app to Include Tax in Item Price, which shows one amount – the combined tax and item price.

The tax will appear in your reports, but your customers will not see the tax. 

[omaha]

I still need the tax to be listed separately, othewise I would think they will question why the price on the receipt is different than on the price board in the store?

[VanKalkerFarms]

Are you sure you are supposed to apply the sales tax to the total with the occupation tax?  Not saying you're wrong as each state has different rules regarding B & O and occupation taxes.

from what I had seen in my state it was to be just another tax at the end of the receipt like when you see the separate food, beverage, regular tax rates.

[Patnukem]

Hi,

I run a small bar in Omaha,Ne. We have a lot of fun taxes I have to add to my register. The issues I am having involve Occupation tax, this has to be applied to the sales price + the sales tax, not in addition. I can not find a way to do this correctly on Square I always get them added before tax. I also have to set up a restaurant tax but that is easy as it does not include sales tax.

[nika]

@Patnukem Have you tried this suggestion of including tax in the item price? Does that help you?

[Patnukem]

Unfortunately that does not calculate the occupation tax properly. In Omaha the tax of 2.5% must be charge for the total bill plus the sales tax. Combining tax in the price and adding another tax still calculates without the sales tax included. The best I can do is add 2.68% tax and get as close as possible. This should be updated in square software.