How to File State Sales Tax



April 5, 2017

Filing state sales tax can be in a word, annoying. Oftentimes, state websites are hard to use, verbose, and outdated. The state department of revenue relies on you to collect sales tax from your customers and then remit the appropriate amount to it. How often you remit sales tax to the state depends on how much money you make from selling your goods, and the policies vary by state. The following states do not collect sales tax: Alaska, Delaware, Montana, New Hampshire, or Oregon. Unless you are in one of those states, it’s important to familiarize yourself with the taxes you are responsible for collecting.

When you first set up your business to collect sales tax, you will need to provide your  Federal Employer ID Number. You can typically do all of this online, but it’s a good idea to call your state’s helpline to make sure you are covering all your bases. The policies change frequently and filing websites are not always up to date, so make sure you take note of who you spoke with and when, so you can contact them again if needed.

Once you are set up to collect sales tax, set reminders for when you need to report and remit your sales tax. This will be either monthly, quarterly, or annually, depending on your volume of sales. There is a late fee associated if you miss a filing deadline. As your bookkeepers, we can make sure you are always accurate and on time. We can also help you decipher the sales tax rate you need to collect which varies by state and will vary if you have customers from different states. Quickbooks Online is an excellent tool for calculating & recording this and we are happy to help you set it up!

Have questions about state sales tax? Give us a shout!

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