Sales tax (USA)
How much sales tax sits inside the money that came into the bank — by month and by tax group, for the return.
Where
Accounting → Reports → Sales tax. The report is there only for salons whose country in Settings is the USA. Pro / Max
Where the amounts come from
From the bank: the same lines as the Income section of «Cash flow by account» — posted transactions of the salon's accounts (not Personal) filed under a heading of the Income type. Every income heading is a line of the report: Services (SQUARE), Services (CASH) and so on.
Tax groups
- Every income heading has a tax group. There are four, the same in every salon: Services, Goods, Tips (not taxed) and Not taxed.
- The group is chosen in Bank → Headings (the «Sales tax» line under the heading's group) or right in the report, in the «Tax group» column.
- Until a group is chosen, the program places the heading by its name and marks it in red: «chosen by the name — check».
Rates
The rate is set once per group in «By tax group»: for example services 4.5%, goods 8.875%. A new heading is counted at its group's rate straight away.
Tips
- Tips are not taxed.
- Card tips from Payments (the terminal and payment links) come into the bank with the Square deposits, so the program takes them off the Square line by itself.
- Other tips (cash, Zelle…) are entered by hand: the «+» button in the «Tips» column, then the month, the income line and the amount in «Tips entered by hand».
- If tips come into the bank under their own heading, give it the «Tips (not taxed)» group — its whole amount counts as tips.
How the tax is counted
The bank money already includes the tax, so it is taken out of it: (income − tips) × rate ÷ (100 + rate).
What the report shows
- Tiles: income, tips, sales tax, sales without tax and tips.
- By month — income, tips and tax for every month.
- By tax group — the amount and the tax for services and goods separately.
- Income from the bank — every heading, its group and its tax.
- Print prints the report for the chosen period.
Tax on a sale invoice
- The New sale form has a Sales tax % list: the Goods rate (chosen by default), the Services rate or «No tax». The rates come from this report, or from the Square Terminal settings if none are set.
- The tax is counted on the goods after the discount and is part of the Invoice total; the tax amount is shown under it.
- The printed invoice (Save & print invoice) has its own Sales tax X% line. Payment on the spot, the balance owed and the card charge already include the tax — the Square terminal does not add it a second time.
- The margin is counted without the tax: tax is not the salon's income.
Inside the program the same article is under Help.