Re: Square does not round sales tax correctly

Gerd

In our store we have to charge sales tax on food and beverage items. Out tax rate is 8.75%. If I have an item that sells for $6.00 the sales tax calculated by Square is $0.52, however, the sales tax is $0.525, which should round to $0.53, but it does not.

We extract the daily items details to import them as sales transactions into our Quickbooks finance system. Unfortunately QB does round the sales tax, thus, causing a $0.01 difference. In order to match the QB sales receipt with Square, we now have to add a $0.01 correction to the QB sales receipt.

I have found other threads in the forum talking about tax rounding issues and using Quickbooks, but there does not seem to be any option for us to get this corrected. After QB is our certified finance software, I have to use the sales tax calculated here.

Does anybody have the same issue and if yes, how do you handle this? I

TheRealChipA

Hi there @Gerd.. A little clarification is needed. Where, exactly, are you seeing that the Square sales tax is calculated incorrectly? Is it on the POS/online store, or is it when you are importing your sales into QB? This is important to help track down where the error is occurring. Also, screen shots would be very helpful here.

Thanks.

Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)

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Gerd

It's in the tax column of the Item Detail CSV extract I do from our online account.

I just created a new ticket about it again.

This morning I extracted the Item Details CSV, added a filter on the net amount field to select only amounts of $6.00. With our tax rate of 8.75% it should calculate $0.525 tax amounts, rounding it to $0.53.

On the excel I only selected time periods 11/07, when we opened our store, till today. About 50 rows showed tax amount $0.52, but 20 showed tax amount $0.53, which is actually correct, and is the one I need in Quickbooks as well.

Gerd

Well, I should have just tried with copy/paste.

Here is a subset from the Item Detail CSV with the item details, amounts and taxes.

At the bottom I added a count how many rows had $0.52 and how many had $0.53.

Gerd

The complete count for all rows with $0.52 and $0.53 is

TheRealChipA

@Gerd Interesting. Am I understanding correctly that you opened a trouble ticket with support? If so, from what I see in your posts, that was definitely the right thing to do. This looks like a Square issue (not QB), in this case. Anyway, I'll tag the Community moderators in case they can help at all.

@Kassi_@RSosebee1 @_Violet @MayaP @Summer2024 @Summer2024 @Ellie_@Katie_SQ @Laurie_@Sammie_C

Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)

Was my post helpful? Take a moment to mark it as a solution. Marked solutions help other sellers find possible resolutions to similar problems. Also, if you find your solution elsewhere (say, through Support), it is helpful to come back to your post and tell us about it, then mark that as a Solution. Solutions are what this Community is all about!

Gerd

Well, my support experience was rather "dissatisfying" to say the least. Even though I had said I am using the Item details CSV extract, I got a one line reply from support, that they can't do anything. From that reply I had to assume, they had not even done the same extract and check why I have different tax amounts for the same net amount.

I think the reply was based on my question if there is an option where I can do my own rounding to match what Quickbooks requires. I had replied to that one-liner. mentioning again the extract I do, but did not get another reply, but a survey how the tech did. I did NOT want to fill in the survey.

They further did not address the issue I now have in Quickbooks where I have to apply a $0.01 correction to match QB and Square.

I just would with Square would be more open to such issues, and accept the fact, that I don't use Square for my tax reporting, but rather Quickbooks. Even though Square does not charge the correct tax amount I still pay it as QB does the correct rounding.

Gerd

Sorry, I just realized I have the counts the wrong way around.

Here are the correct counts

Kassi_

Hey there, @Gerd!

Appreciate all of the information on what you're seeing. From what I have seen, I know this integration isn't perfect and other sellers have experienced this before. Normally, when it comes to integrations - I would recommend reaching out to see if there's anything the partner (QB) could do on their end to help.

How did you contact support recently? Were you able to send all of the documentation you mentioned in here?

I will keep an eye out for your reply👀.

Thank you for the tag, @TheRealChipA !

Kassi
Community Moderator, Square
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