This question is about the sales tax collected by square.

We have a retail business and have entered in the sales tax to be collected for each sale. Our sales tax is broken down as follows:

State: 4.5%

County: 0.125%

City: 3.875%

Total: 8.5%

We have the 8.5% plugged into square for the precent to collect for each transaction.

Here is the issue. We must pay the state each month the sales tax collected, its an online system that you just have to plug in the sales numbers, BUT when I do the amount of tax that we collected and need to pay the state is way off, some months is just around $10 or $20, but this month is over $100.00. Here are the numbers for May 2022

Net sales $6,497.72

Tax collected is $448.83 in square.

Our state system says we owe $552.31 based on the $6497.72, that’s $103.48 that we are short. We can not figure out what is happening that we are not collecting the proper tax amount.

If you do the math for each of the 3.

$6497.72 x 8.5% = $552.31

AND separated

$6497.72

X

4.5% = $ 292.40

0.125% = $8.12

3.875% = $251.79

Totals $552.31

Need help, as we can not figure this out, AND yes again I doubled checked Square that we have the correct 8.5% set as our sales tax that need to be collected.

P.S. In the settings the feature Tax calculation is NOT turned on.

Thank you for any help.