Hi @WhiteSage. So, if I’m understanding your questions correctly, here are your answers.
Caveats
If part of your transaction is taxable and part is not, you can NOT run your transactions as one-item charges. Assuming that your transaction is a mixture of products and services (labor), you’ll have to have multiple items in your cart. There is not way around this since you have multiple sales tax strategies.
Sales Tax Definitions
You only need to do this one if you have some items that are sales-tax-inclusive and others that are not sales-tax-inclusive. If that doesn’t apply to you, ignore this section.
If you have some products/services that are tax-inclusive and others that are not, you need to create a second sales tax definition in Account & Settings > Business Information > Sales Tax. In my case, if I were to need this I already have a 6% Kentucky Sales Tax defined which is NOT inclusive. So I’d need to create a second one called “Kentucky Sales Tax (included)” for the same amount, and toggle “Include tax in item price” on.
Then you will have to edit each item and service and attach the appropriate sales tax to it using the “Taxes” dropdown.
A word of warning here. Many states (mine, for example) does not all a mixture of inclusive and non-inclusive sales taxes. We have to pick one and stick with it for all items and services, period. So you’d be wise to consult with your accountant/CPA to be sure that your state allows this at all.
Untaxed Labor
When you create a Labor service item, you’ll have the same opportunity to define how it is taxed. In this case (using the “Taxes” dropdown) you’ll select “Non-taxable item.”
Entering Transactions
After all of that, when you enter transactions, you add all of the products (tax inclusive or not) and Labor if it is needed. Square will calculate the appropriate sales taxes.
Lastly, note that what I described above only works for in-person POS sales. If you have an online store with these same issues, you’ll need to let me know and we can discuss your options from there. But I’m not going to muddy the waters needlessly.
I hope that helps. Let me know if you have any further questions.
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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