sales tax

[threeputt]

Finally, the term CPA is thrown around a lot on this board. I have no idea about 149motorsports' business, but some small businesses can get by nicely with a Public Accountant. The Certification part is going to cost you. We do use a CPA and the rate is $170.00 per hour, I believe. (would have to check with the wife on this)

But her advice is important to us. And we're willing to pay for that "C" in her title. We talk with her about retirement issues, selling the business issues, purchasing equipment issues and the timing thereof, etc. How things can be structured, that kind of things.

We don't use her to do bookkeeping of any kind. For obvious reasons.

 

[Fred Weiss]

Interesting. That's a nice break, albeit not much dough. Here in gool ol' Washington state, we're offered a similar break if the taxable amount each month is under $10,000. Since ours never is, we don't get squat for doing this.

I can see the logic though. There's the same amount of paperwork to fill out each month for smaller amounts, so they try and offset that for you.

Bigger merchandisers would be happy, very happy to recieve 2.5% on sales tax they collect. Imagine the ringups at Lowe's, Safeway, etc.

That's why they don't offer it if your amounts are over 10 grand monthly.

I believe there is a high end cutoff but you still get a certain fee for your time and trouble. It's either a total discount of $25 or $50 ... not sure which. My recollection of Washington when I did business there was that it was the same or similar.

 

[ChiknNutz]

Hmm, I wasn't aware of this 'discount' either..hafta look further into it!

 

[threeputt]

Fred, I'll have to check with the comptroller up front about that one. (my wife) She's gone for the day. She's a pretty sharp cookie. I'll ask if she's aware of it.

BTW, I'm just a "wheel" in the production area. Not so smart about the front end stuff.

 

[JimJenson]

I stand corrected. The discount is actually 2.5%. Your accountant has either been handling that for you without you knowing it or you should refile for as far back as the Dept. of Revenue will allow. If you haven't been taking it, you might want to shop for a new accountant.

Actually, I believe the states rate is 6%, plam beach county tacks on an extra 1/2%

 

[Fred Weiss]

Actually, I believe the states rate is 6%, plam beach county tacks on an extra 1/2%

Your absolutely correct, however, the rate of Florida sales tax is not what we're discussing. We are discussing the discount each collector of sales tax is allowed to take when filling out the report and making remittance.

 

[JimJenson]

For example, in my state the rate is 6.5% and we get a 2% fee of the tax collected for collecting and reporting. Therefore on $1000 in taxable sales I actually charge $1065.00. The report goes like so:

Sorry, I quoted the wrong post.

 

[bob]

i use the cash method...i pay sales tax to the state 4 times a yr, basically every 3 months Jan 1 to March 31,ect.

This may be dumb question, but i took the total sales from jan 1 to march 31 2008, and paid the 7% sales tax (quarter 1). now i would take the sales from April 1 to june 30 2008 (quarter 2)and pay the 7% sales tax on the amount correct? i know not all of us have the same schedule,ect. thanks!

That's not the way it's done. You need to account for every sales tax transaction and send that amount to the apparatus. Sending 7% or whatever of your gross is hosing yourself. Not all of your business may be subject to sales tax. Work for tax exempt organizations, in this village every church has a tax exempt certificate. Work for resale and you have a copy of the clients seller's permit, or whatever they call it in your area on file. Work sent out of state is not generally subject to sales tax. Services are usually not subject to sales tax. Things like installs, etc. The jury's still out on vehicles, windows, etc. being taxable. I add sales tax to those but I separate the actual goods from any installation charge.

 

[JimJenson]

If everything you do is taxable, it is 7% of gross LESS tax collected.

 

[Billct2]

Here (CT) everything we sell is taxable (goods & services).
Of course there are tax exempt transactions to the towns, schools, churches, charities, out of state and resellers.
We get nothing for collecting the tax.
I have a office person do the daily trackimg, then a bookkeeper do the quarterlies, then an accountant to write it all up at the end of the year. Taxes are deducted from the gross sales when figuring profit.

 

[Sign-Man Signs]

I stand corrected. The discount is actually 2.5%. Your accountant has either been handling that for you without you knowing it or you should refile for as far back as the Dept. of Revenue will allow. If you haven't been taking it, you might want to shop for a new accountant.

Our accountant says the same thing.