Sales Tax Reporting

Sales tax calculations and reporting are not a “one size fits all” process. Knowing where, when, and how retailers and service providers—whether online or “brick-and-mortar—are required to collect, report, and pay sales tax is a function of the economic nexus laws. Fortunately for their clients, Jennifer Neuendorf and Houston Small Business Services have experience in this specific arena, having navigated this process. They have processed sales tax reports and payments for an online retailer with a national footprint, traditional retail and rental operations, and even a series of pop-up shops organized by a charitable foundation.

Sales Tax Reporting

Knowing the sales tax registration process and the appropriate local, state, and national taxing authorities is among the strengths of Jennifer Neuendorf and Houston Small Business Services. They can ensure that retailers are calculating and collecting the correct taxes from their customers. They will also file the return in compliance with existing deadlines to avoid late penalties and other applicable fines.

Getting this “right” can be challenging since each state often has different rules. This can also apply to local and state taxing entities. The frequency, scheduling, and even the amount of information required can differ for all commodities. These various agencies may require different forms. Without proper supervision and oversight, businesses risk underpayment and overpayment of the relevant taxes.

Among the first steps that Jennifer Neuendorf and Houston Small Business Services will take is to determine whether the products or services a particular company provides are taxable. This determination can vary from state to state. If the owners and operators are new to the taxable sales and services forum, Houston Small Business Services will determine if the state in which that business operates has sales taxes. Both local and state sales taxes may be in force. There is also the matter of sales tax charges on internet transactions, which may also be in force. Additional research is needed to determine if the business is selling a product, service, or a combination of both.

The deciding factor is often dependent on the definition of the tax nexus. This is impacted by the “physical presence” of the business in a particular state. This can mean property and employees. Jennifer Neuendorf and Houston Small Business Services earned their credentials in this while in service to a major online retailer with a national footprint. They apply this knowledge and experience to small business owners and operators in all relevant instances.
As a reminder, the assessment and collection of sales taxes falls under the control of the individual US states. This regulation may also apply to non-taxable products.

Prescription drugs, for example, are not taxable in most states, while non-prescription medications may be. In some states, taxes on food sales are in effect, while others make these purchases tax-exempt.
The best way to ensure compliance, collection, and payment of sales taxes is to secure the services of a qualified bookkeeper like Jennifer Neuendorf and Houston Small Business Services.

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