Charging Sales Tax on Bundled Services

Hello, we are in a state where software that’s installed on a device (e.g. AV, RMM, etc, but not SAAS) is subject to sales tax. Labor is not.
We like to bundle services so clients have a line item like “Managed Service User”, each including the AV, RMM, support, etc.

Let’s say we charge $100 per user (not really, I’m using example numbers here). Only about $10 of that is taxable software. The rest is labor.

I though we’d be able to use Syncro’s bundle feature, but then I find that you can’t use quantities greater than 1 for bundles (ugh!).

Let’s say sales tax is 5%. If we were able to use the bundles, the tax on the software part only would be just $0.50 ($10 * 5%). Instead, we’re charging sales tax on the entire $100 line item, so $5.00 in tax. So I’m collecting $4.50 extra per user every month for the state, for no good reason.

My options are to:

  1. Keep a single line item for users. Since I can’t use bundles for this, I need to charge tax on the entire item.
  2. Break the bill down into multiple line items. Makes things confusing and I don’t exactly need clients to see that the tools only cost $10 for a $100 user.
  3. Give them a single line item and track sales tax manually in a spreadsheet or similar, wasting tons of time.

How are other MSPs handling the sales tax dilemma when charging per user?

I am interested in this as well. We don’t itemize today and this gets around the requirement with our state, but I am sure they will fix that loop hole soon.