Why is sales tax calculated incorrectly? It should be $0.46. Tax rate is 8%.
Oh, nevermind! I have to enter the unit price including tax.
Correct. All cash receipts are tax-inclusive. But are you sure you should be charging tax on shipping? I suspect that if you check, you will discover the shipping company is charging any required tax already. In most states, sales taxes are only paid once, not at multiple steps in the chain. I don’t know New York law, but as a service, shipping may be exempt from tax anyway.
Thanks for asking about tax on shipping. I purchase 95% of items for resale from out-of-state vendors. Consequently, they are not charging me New York sales tax. The other 5% is so minimal it is not worth separating the sales tax, I just build it into my cost of inventory. New York requires way too much paperwork to get refunded for the taxes paid on resale items.
In New York, we are required to charge sales tax on the entire order, including shipping. 