PayPal Here is missing a technicality of charging sales tax. Consider the following: The sales tax rate is 7%. State sales tax is 5.5%, and city sales tax is 1.5%. The sale is for $89. Here is where it gets interesting. $89 + 7% = $95.23. But the separate jurisdictions have to be paid separately, so each has to be rounded BEFORE they are added together, like this: $89 x 1.5% = $1.335 -> $1.34 $89 x 5.5% = $4.895 -> $4.90 Then, $1.34 + $4.90 + $89 = $95.24 It is possible that the rounding would take a penny away, instead of adding one. Also, the correct functionality is the way that Quickbooks Online handles tax.
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