Clover Sales Tax Help
Why Does Clover Report Two Different Sales Tax Amounts?
When you’re running a busy establishment, managing your Clover POS system should simplify operations—not create confusion around tax obligations.
One question we frequently hear from Clover POS users is: “Why is my Clover reporting two different amounts of sales tax collected for the same period?” This common concern might have you second-guessing your Clover taxes and fees setup, but the explanation is simpler than you might think.
Understanding Your Clover POS System’s Dual Tax Reporting
Your Clover POS system calculates and reports sales tax in two different ways, depending on which report you’re viewing. Let’s break down these differences to help you understand what you’re seeing.
Clover Sales Tax on the Payments Report
When you view the Payments Report on your Clover POS, you’re seeing what we call “Transactional Sales Tax.” This represents:
- The sales tax calculated and collected on each individual transaction
- Each amount rounded to the nearest cent (two decimal places)
- The sum of all these individually-rounded tax amounts
For example, if your tax rate is 7.75% and you sell a $10.00 item, your Clover POS will calculate $10.00 × 0.0775 = $0.775 in sales tax. Since we need to work with dollars and cents, the system rounds up to $0.78.
Now imagine you complete 10 similar $10 transactions throughout the day. The Transactional Sales Tax would be:
- $0.78 per transaction × 10 transactions = $7.80 total tax collected
- This represents an effective rate of 7.8% rather than your set 7.75% rate
Clover Sales Tax on the Sales Tax Report
When you switch to the Sales Tax Report on your Clover POS system, you’ll see a different calculation method:
- The tax is calculated as a percentage of your total sales for the period
- Using our example: 10 transactions × $10 = $100 total sales × 7.75% = $7.75 tax
- No transaction-level rounding occurs in this calculation
This creates a $0.05 difference between your reports—a small discrepancy that often puzzles business owners new to Clover taxes and fees.
Why This Matters for Your Business
State tax authorities understand these rounding differences in Clover POS reporting. Most states require merchants to remit the Percentage of Total Sales tax (from the Sales Tax Report), recognizing that transaction-level rounding typically results in slightly higher collections.
How DAVO Simplifies Clover Sales Tax Management
When you integrate DAVO with your Clover POS, we handle these complexities automatically:
- DAVO sets aside the Transactional Sales Tax Total daily from your Clover system
- When filing time comes, DAVO calculates and submits the Percentage Sales Tax Total to the state
- Our system performs automatic reconciliations between the two amounts
- Any difference between collected and remitted tax is refunded to you
This seamless integration between DAVO and Clover POS eliminates the stress of tax management, allowing you to focus on growing your business rather than reconciling tax reports.
Take Control of Your Clover Sales Tax Today
Stop worrying about tax calculations, filings, and reconciliations. DAVO Clover integration provides peace of mind with automated sales tax management that works silently in the background while you run your business.
Ready to simplify your Clover taxes and fees management? Learn how DAVO’s can transform your sales tax process by visiting www.davosalestax.com.
