Allow sales-tax brackets for amounts less than $1.00
In the USA, Florida (and I believe Maryland) require us to calulate sales-tax at the appropriate rate (county-specific in Florida) for whole-dollar amounts. Then, we must take the remaining amount that is less than one-dollar and look-up the appropriate tax amount in a table and add it to the whole-dollar tax amount to get a final tax total.
The official documentation states: "Florida uses a bracket system for collecting sales tax on any taxable sale that is less than a whole dollar amount. In calculating the sales tax, multiply the whole dollar amount by the tax rate (6% plus the county surtax rate) and use the bracket system to figure the tax on the amount less than a dollar. The bracket system card is posted in the FL Department of Revenue site at http://dor.myflorida.com/dor/forms/current/dr2x.pdf (form DR-2X).
For example: In Miami-Dade County, how much sales tax do you have to collect on a $19.62 item? Multiply $19 by 7% = $1.33, then find the tax amount for the 62 cents in the bracket card and add this amount to $1.33. The sales tax for a $19.62 sale is $1.38."
It is unfortunate that our government is still using such an antiquated system. But as it stands, Zoho Books tends to understate the sales-tax liability for a transaction by about $0.01. Can a fix for this be added?
Ian Nicholson
shared this idea
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I believe this was changed in the last couple of years to use a percentage instead of the confusing bracket system, so this idea may no longer be necessary.