US - Sales Tax Calculating Incorrectly
RW_DFA
Member Posts: 2
Hello,
I recently created a sales tax, and I added it to my invoice. However, it is dramatically under calculating the amount of tax that I need to collect. I didn't notice it on the first 2 invoices, and it cost me several thousand dollars of uncollected sales tax that I had to pay out of my own pocket.
I have 2 items:
Item 1 - $4,300.00
Item 2 - $1,009.38
State sales tax is 8.625%, so my tax SHOULD be $457.93
However, wave is calculating my tax due as $87.06
My tax is set as:
"Show tax number on invoices" - Checked
"This Tax is recoverable" - Checked
"Current tax rate (%)" - 8.6250
Effective Date - January 1, 1900
I created a second tax that is exactly the same, and applied that, but it made no difference in the calculation.
Will really appreciate some help here.
Comments
Apparently it has to be applied on an item-by-item basis. I just looked for it at the bottom of the invoice like you would typically see on a receipt from a store.
Hopefully this will help someone else in the future. Best of luck.