Sales Tax

SerhWyatt · ‎11-07-2022

Hello, I am curious to how Square pays sales tax for taxes collect. I have the tax set up to collect 10.5% on each transaction, but I am not sure where this 10.5% goes. Is it collected and deposited into my account, in which I am required to pay the tax myself? I am in Arkansas, so any insight into this question in particular to Arkansas would be a big help. Thanks!

VanKalkerFarms · ‎11-08-2022

yes, Square simply processes the total you are charging on a credit card as one lump sum. They then deposit your sale, minus their fee into your account. It is up to you to file your sales taxes monthly or quarterly etc depending on the state you are in. It is basically the same as selling for cash where you have to keep track of the sales tax part of each sale.

Bob Van Kalker
My Van Kalker Farms Garden Center website
My Rise'n Roll Bakery Schererville Indiana Facebook Page
My Rise'n Roll Bakery Cedar Lake Facebook Page

DLRosenberg · ‎11-08-2022

There are 3rd party services you can pay for like DAVO (what we use) which will take the sales tax liability you collect daily- hold it in escrow, and then remit your taxes for you. It's a pretty affordable option that saves tons of time.

Dina
Co-Owner Amityville Apothecary
www.shopamityvilleapothecary.com
Instagram | TikTok @AmityvilleApothecary

Podcast: Apothecary After Dark (YouTube & Spotify)