@starblzer I do not believe that Square pays sellers’ sales taxes to anyone. Square only gives us the tools to collect the appropriate sales tax so that we can file/remit it to the taxing authorities. Having said that, if you use a third party sales tax app connected to your account — like TaxJar — they DO file/remit for us. But I’m not aware of Square doing that at all.
As far as an easy way to help you track this, do the following:
- Create a second sales tax, exactly like NJ’s tax. Call this “Winery Tax Pass-through” or something like that.
- Exclude bottles of wine from the NJ sales tax. Then add those bottles of wine to the new sales tax.
- At the end of the month, run the sales tax report from your dashboard. It will tell you how much you owe to the winery, and how much you owe to NJ. No duplication, and no added monthly effort other than having to write two checks and send two reports.
Let me know if you have any questions about how to do any of that, and I’ll be happy to give you the steps. This is something I used to do when I sold food through 3rd party delivery services like DoorDash, until they started just keeping the money rather than giving it to me to give back to them. It worked great
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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