Does Square automatically take out sales tax?

Does Square automatically take out sales tax? Ugh, that’s a HUGE question, and the short answer is… kinda, but don’t you dare trust it completely! Square says it does, and they make it seem so simple, all slick and automated, right? But honestly? I almost got myself into a world of hurt because of that.

I remember, it was a few years ago, I was just starting out with my little Etsy shop, selling handmade soaps – which, by the way, are amazing – and I figured, “Square handles taxes, problem solved!” So naive, I know. Turns out, my county has some weird little extra tax added on, like, a tiny percentage nobody ever talks about. And Square? Square missed it. I almost got audited! Can you believe it? Seriously, the stress was awful.

So, yeah, I learned my lesson. It’s a pain in the butt, I know, looking up all those different tax rates – state, county, city… sometimes even special district taxes, it’s crazy! I spent hours on the state revenue website, but hey, at least now I know for sure I’m not going to get hit with a massive bill and a possible fine later. You know, I’ve heard stories – people owing thousands because they got their tax setup wrong. It’s scary, right?

So please, please, please, don’t be like me. Don’t just assume Square (or any other payment system, for that matter) has it all figured out. Take the time to really understand your tax obligations. Double, triple check those rates! It’s tedious, yes, but way better than a potential audit… or even worse. Trust me on this one. It’s a small price to pay for peace of mind.