Issue with Stripe Connect, Sales Tax, and Commission Calculations

Hi all,

I’m trying to determine how the math is done on my sales tax and commission for what is sent over to Stripe connect. I have sales tax set for the user, and did an order with two items from two different vendors.

Item 1 from Vendor 1: 40.00 sale (free shipping) + 3.40 tax
Item 2 from Vendor 2: 5.00 sale + 1.00 shipping + .42 tax
Total for order: 49.82

Over on the Stripe Connect end:

49.82 received - 1.74 Stripe Fee = 48.08 net

Vendor 1 is transferred 34.83
Vendor 2 is transferred 5.23

This leaves us as the Marketplace with 8.02.
From that 8.02, we have to remit the 3.82 in sales tax, which leaves us with 4.20 in commission.

However, our commission is set for 9% of the sale price minus the tax, which should be 46.00 (cost of both items). My math shows that should be 4.14.

Can anyone assist with how the math is done on the CS cart end? I have follow up questions on the accounting and what it shows, but for now I just want to be able to say with certainty how CS-Cart calculates all this stuff. If necessary, I can add screenshots of my vendor plans or Stripe Connect addon settings?

EDIT: I also just realized that I had the box checked for “Include Taxes In Vendor Commissions,” which I found confusing, but based on other posts here, I have unchecked. The math still does not add up. I would greatly appreciate if someone could inform me how these calculations are done, and I feel like it would be good to have it in the documentation.

Thanks everyone!
Randy - Alley Cove

Hello all, I think I may have resolution here.

First, after extensive poking around, I decided to uncheck the “3-D Secure” box in the payment method for Stripe connect. This caused our fee to be taken out as an “Application Fee,” which to my understanding it should have been already. But the documentation isn’t clear around this. It’s almost like having 3-D secure checked changes you to a form of transfer and not the Direct Charges, even though my Connect dashboard specifically said I was using Direct Charges.

Still doing some fact finding, but with the above changes and the same repeated order totaling 43.40 (40 dollar sale + 3.40 tax), I was given a fee of 7.00, which equaled the tax amount + my 9% commission. The strip fee was taken from the user on their end. It then showed up as “Application fee” on their dashboard, which matches what the stripe documentation said it would do.

Thank you,
Randy
Alley Cove

I am having the same issues. Do your payments involve multiple parties (Ex: 2 vendors in one checkout so they each get a portion?) or just single party?

It seems when 3-D Secure is enabled it changes the way the stripe fees are assessed. My testing shows that the admin receives commission and the fees are split between vendor and admin (so admin pays a portion of fees corresponding to commission amount and vendor pays the remaining fees).