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PayPal fees & taxes question

New Community Member

PayPal fees & taxes question

I know many may have asked this question, at least similarily, but I still couldn't quite get an answer I was content with. 

 

So I know that there's a 30 cent flat fee with another 2.9% fee that goes to PayPal, but I feel like I'm missing more info. 

 

For example, let's say I am supposed to get $40, but after fees I receive $37.94, which is a $2.06 difference. 2.9% of $40 is $1.16, and add the $.30 fee, so I should have received $38.54. Where is the extra 60 cents going? It's 1.5% of $40 I realized, it's that like a state tax? 

 

Another example is I'm paying someone to make sure they get $2 even. I have to pay $2.54 apparently after fees & taxes, but after the 30 cent fee and 2.9% (about 6 cents), it should be $2.36. The extra 18 cents I do not know where it is coming from. 

 

If someone could clarify this for me, that'd be appreciated. 

 

Thank you in advance