Automated sales tax in QB doesn't calculate correctly. If a sale exceeds a taxable rate of over 5K, it should not calaculate sur tax on the entire balance, only up to 5K

Welcome to the Community, accountspayable. 

In QuickBooks Online, the capping option is unavailable if it exceeds $5,000 in automated sales tax. The system will tax the entire balance, regardless of the sales amount. However, if you prefer to tax your sales only up to $5,000, you can manually override the calculation and enter the correct amount. I have steps to override the automated calculation and enter the amount you want to tax.

Here's how:

1. In your invoice or sales receipt, click See the math. 
2. Select Override this amount. 
3. Before entering the adjustment, read the provided options and steps. Then, enter the desired rate or amount. 
4. Choose a reason for making the change, then select Confirm. 
5. Select Save.

Under the Sales Tax Liability report, you can track the amount of taxes you have already collected.

In addition, I'll leave this article for you to learn how QuickBooks calculates sales tax: Learn how QuickBooks Online calculates sales tax

If you have more concerns about automated sales tax, feel free to leave a comment. I'm always here to help. Take care.

@RhoiceW  RE: automated sales tax won't be limited to $5,000.

So, you're saying the 'automated' sales tax isn't actually automated, and is too stupid to know about sales tax ceilings, so the user has to manually overwrite the sales tax? 

Wow. What's the point of building an automatic sales tax feature that doesn't work, that doesn't follow the rules?