Hello @PSRLLC77 thanks for your post. It took a while to get in sync with your train of thought...just a suggestion, if you use periods between your sentences it helps other people follow along with your thoughts. As far as your question...
I'm not sure if Square charges the tax on the item total, or the total including the sales tax. But either way, The sales tax is an extra fee that is paid for BY THE BUYER of your item. So even if Square's fee is taken before or after the sales tax, the total amount comes to pretty much the same. For example:
I am not a math wiz, but I think this is correct, sorry if it is not. In either case though, Square calculated the sales tax and adds that ON TOP OFF what your customer is paying you for your item. Square COLLECTS that Sales Tax for you, and submits that with your bank deposit. Then you are responsible for sending those State Sales Tax payments to your State's tax collection office.
I am not recommending this, but you can adjust your tax settings within your Square dashboard and TURN OFF sales tax for all of your items. However, please consult your State Sales tax office as this could be illegal and/or improper and you may lose your State Sales Tax license and could be charge with criminal penalties. BUT, if you turn off your sales tax, then Square will not be involved with your State Tax collection, but you will be responsible for separating out that sales tax money from you item prices. Turning off your sales tax will not add that item to your item's cost, so your customers will not be charged any state sales tax. You'd have to ADD an amount manually on top of your sales prices. And again, this is usually an improper method of State Sales Tax collection. Most taxing authority require the sales tax be a separate charge at the time of the sale, or if you INCLUDE sales tax in your selling prices, you must clearly state that to your customers (and then you'll have to still be responsible to sending tax payments into your collection agency.
I hope this might help with your question. Please see this link below for more info about Square and Sales Tax:
https://squareup.com/help/us/en/article/5061-create-and-manage-your-tax-settings
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