I have been trying to contact our store Account Manager, but haven't had a real answer yet on this, so I will try to get information from other sellers.
We noticed this year, that the number of sales from Doordash and Uber Eats don't match with the 1099 report that we received from both companies. The difference was in the tax. As far as we know and this information I got directly with the 3rd party companies, they charge every possible tax on their end, and they send us the money weekly with all taxes deducted. So whenever we receive a sale on Square, the amount of money that arrives is already taxed.
All sales made through 3rd party goes into the receipt as "Other", as shown in the picture bellow.
This next screenshot show exactly the problem, here I see the exact amount of tax that is added to each 3rd party vendor.
When you add the sales of the whole year, we had a discrepancy of $20k+ more or less, from what we registered in our quickbooks than what Uber/Doordash provided in their 1099.
I'm sort of waiting for a response for this case for a couple of months already, so I'm very disappointed, it also makes me think this might be a bigger hole than what I believe.
Now the question is: Is Square charging us anything on this? Is just the numbers that are wrong? Has anyone also had this sort of issue?
I hope I made sense and I would appreciate some feedback.
Hey there,
I had a similar issue with Uber Eats where I noticed they were charging a second tax that I had inactive in my Square account. In my case, it was HST (13%) and GST (8%). This happened because Square doesn’t support an easy way to handle Native Tax Exemption for the 5% PST here, so I used to toggle one tax off and another on for those customers.
However, Uber started charging both taxes in their reporting, even though one of them was supposed to be inactive. I ended up deleting the second tax entirely from my Square profile, and that resolved the problem.
It might be worth checking your Square account to see if there are any inactive taxes that might be getting pulled into the reports. Hope this helps! Let me know if you need more info.
Best,
John
