I spent an inordinate amount of time crunching the numbers and I am now sure that the 1099 they send at the end of the year does include the amount in cash collected. When I look at my yearly NET sales and the total breakdown (credit cards, cash, Afterpay etc...), the total number matches what's on my 1099. So yes the 1099 includes cash sales and everything collected. Anyone else? It drives me insane that this is not addressed by Square as a definitive answer. I found a couple of forums online that state that the 1099 does not include cash, because technically speaking that is not paid out to us, but when I look at the numbers, they don't lie.
Hi @luciotti. This may be more coincidence than anything. 1099 amounts DO only include card processing sales. But, you need to remember that these include sales taxes, service charges, tips and ANYTHING that was processed on a card. They also include AfterPay amounts with those additions as well. The only way I could be sure is to see a few of your reports. If you want to do that, I’d rather do that privately as I don’t want you to post your financial information here in this public forum. Let me know and I can set that up.
I can tell you that it is not uncommon for my 1099s to look like they include cash sales, but only because the non-item/service additions (taxes, service charges, tips, etc) are so close to my cash sales. But the 1099 does not include cash sales. We just need to figure out how to audit yours as I do mine every year.
The 1099 form only shows the amount Square send to you, ie the Amount Square Pays you.
So since you may have a sale for $106.00 total, $6 of which is a 6% sales tax. 3% to keep it simple of the $106 total is a Square fee.
So for this transaction 106.00 - 3.18 (Squares Fee) = $102.82 would be reported by Square on your 1099. Now your Accounting program would have to record the 6% ($6 in this case) as a Current Liability for You to pay to the agency for Sales tax You collected.
When I add up all my Deposits from Square that is equal to the 1099 amount Square states they pay me. I have tried this with 2 accounting programs and added up my Square Deposits from my Bank statements trying to make sure where they were getting the 1099 payment number from. Since this is a form of Payment to a business on a 1099 from Square to you, no Cash sales are shown on a 1099. Cash Sales are shown in your Sales report and has the amount for Sales Taxes you Collect and are Liable for to the taxing agency.
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