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Sales Tax Calculator incorrect
Posted by Bruce on 2/20/2014, 10:24 pm
This calculator can't take into consideration break points in a state tax table. This isn't an issue for the person buying the item. The calculator may or may not be off by a penny. However if you are the merchant selling items at the end of the month, or quarter, you may be owing your state more money then you charged your customers in tax. Most merchants are aware of this and that is why they use a cash register with the break points programmed into it, instead of using a calculator with a straight percentage.
For instance. If a break point is from .37 to .54 cents, and the tax rate is 5.5% then the tax is 3 cents for that range. If the item sold is .37 your calculator,or any calculator, will say the tax is only 2 cents. If a merchant sells say 1000 of these items they will be short 10.00 tax that the merchant will owe the state that they didn't collect from the customers. The calculator will say he owes the state one amount at the end of the month, quarter or year, and the cash register will state he owes a different, and usually higher, amount.
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