State Sales Tax

[SEK]

Has this happened to anyone else. 

The 6% state sales tax at the end of the month that Toast is calculating is wrong.   It is adding more to the number that what the business needs to pay to Uncle Sam.  
This has caused our accountant to pull their hair out and to try and figure this out.

For the month of January and February it is wrong.   I suggest that everyone double check their monthly statements and call them to have them fix the issue, 

After being on the phone with them for an hour and going thru 3 people the last one stated that it is an internal problem.

Lets see if they fix the problem.  We should not have to pay more then what is owed to the state. 

[Kirsten_H · Accepted solution]

If I remember correctly, Toast calculates the sales tax on each item, then adds it up per receipt, which is not really wrong, but it can cause rounding issues.   If you have a lot of small ticket items that are sold individually, this can cause even more rounding issues when the end of the month comes.  When you calculate sales tax on the sum of the sales for the month instead of the individual items, you'll come up with a slightly different number due to those rounding issues.  I typically have to book a bit of sales tax expense each month to true to actual.  

[SEK]

Kristen, thank you for this answer.  It is much more accurate than how Toast was explain it to me. 

appreciated the time. 

[Kirsten_H]

Happy to help, and I get it.  We have State, County and Local tax.  When I initially set up Toast, I kept the three separate.  That was a complete rounding nightmare, so I combined the three into one rate and it made a huge difference.

[DerrickMancini]

Just checking, but for us, Toast doesn't pay the tax, it charges it. When we file, we calculate the tax, and we calculate what we collected, and there may be a small discrepancy, for example due to rounding. But we don't pay "more" or "less" as a result. If we undercollect, that is on us, and we have to make it up. If we overcollect, that is allowable within range due to rounding. Is it different for you?