The sales tax calculated in QBO doesn't match what the state tax authority calculates. For the Commonwealth of MA the sales tax rate is 0.0625 (6.25%).

Hello there, ccramer. Let me help you clarify the sales tax calculation in QuickBooks Online (QBO).

QuickBooks automatically calculates the total tax rate for each sale based on the customer's tax-exempt status, the business and buyer's location, and what you sell. For a more detailed explanation, you can see this article: Learn how QuickBooks Online calculates sales tax.

You can verify the tax rate by clicking the See the math option when creating sales transactions. This way, you'll be able to know the breakdown of the sales tax calculation within the program. Here's how:

1. Select the + New button and click Invoice or Sales receipt.
2. Choose a customer, then enter an item in the Product/Service column.
3. Check the box for Tax.
4. Look for the See the math link just below the sales tax amount.
5. The tax rate and basis of the calculation are indicated in the Location and address section.

If the calculation is outdated, you can manually override it to correct it. After clicking the See the math option, scroll down to the Products and services section, then click the Override this amount link.

Moreover, you can also set up custom tax rate in QBO.

Visit this article for information about submitting your sales tax form and entering your sales tax payment in the system: File your sales tax return and record sales tax payments in QuickBooks Online.

You can always count on me if you need a hand in other sales tax-related activities. Just hit the Reply button, and I'll be here to help you.

NOPE!

Not at all what the issue/problem is.

My State Taxing Authority has me enter my taxable sales(Gross) for their jurisdiction onto their site in the middle of the month for the previous month's sales. They then calculate what I owe using the standard sales tax rate for that jurisdiction.

I get that Gross (taxable) sales number from Quickbooks.

Yet that same sales volume frequently yield a different "tax owed" amount on the QBO report versus what the State says I need to pay, It's often only a few cents, but there's really no reason that they should be different or that i should have to adjust my payment amount in QBO.Yet I do.

Why is this happening and how can it be fixed?????  This has been going on for a VERY long time.

This needs attention and a quick fix, Ccramer. Let's review the source of the discrepancies between your QuickBooks Online reports and the amount calculated by your state's taxing authority.

First, we can ensure that the sales tax rates set up in QuickBooks Online match your state and local jurisdictions. Sometimes, slight variations in tax rates or rounding can cause discrepancies.

Second, we can run the Sales Tax Liability report and compare this information with your state’s calculation. Pay attention to the specific details and breakdown of tax collected before paying the amount to your sales taxes to avoid payment adjustment in the future.

However, if you continue to face issues, consider reaching out to our QuickBooks Online phone support team for a detailed review of your tax setup and calculations. They can also double-check ongoing cases on this matter.

You can reach them through these steps:

1. Log into your QuickBooks account.

2. Click the Help option in the upper-right corner.

3. Tap the Contact Us button.

4. Choose a topic from the boxes or tap the Ask about something else box.

5. Next, state your concern in the box. Example: Sales Tax Calculation issue. Then, press the Continue button.

6. After that, select between the two options: Have us call you or Schedule an Appointment.

Moreover, I'm adding these resources on how to edit sales tax payments in QuickBooks Online (QBO):

• Manage sales tax payments in QuickBooks Online.
• File your sales tax return and record sales tax payments in QuickBooks Online.

Your concern is our top priority. I'll be here to lend a hand with resolving your sales tax calculations and payments in QuickBooks Online. Have a fantastic day ahead.

@ccramer  Far be it from me to defend QBO, but if the variance is only a few cents, I'm afraid that you may be a victim of math, not QBO, in this specific instance.

I am assuming that you have more than one sale per month. If that is so, then QBO would be calculating the sales tax due on individual sales, and the QBO report would be summarizing the individual sales amounts and individual sales tax amounts.

The problem is that adding the results of 30 different multiplication problems can yield a different number than the result of one multiplication on the sum total of sales.

It's just the hazard of rounding, and outside of manual adjustment, there's not really anything to be done about it outside a complete reworking of the field mathematics as we know it. I suppose QBO could try to make the manual adjustments themselves, but honestly, I don't believe that would end well.