Everything You Need To Know About Sales Tax Rate Changes
It sounds easy enough until collecting sales taxes gets a bit more complicated. Your sales tax can vary due to state sales tax changes, purchase location of products, or customers in states with no sales tax. That’s when it gets complicated. On top of all that, how are you tracking your non-recovered sales taxes?
Resources For Collecting Sales Taxes
Thankfully, you’re not alone! There are lots of helpful resources available:- How sales tax is collected by the company?
- How to calculate Sales Taxes?
- How to handle Non-Recovered Sales Taxes?
Visit your Intouch account, under the Resources tab, then Tax.
While we cannot give tax advice, we can arm you with the information you need to file your income taxes. Whether it’s calculating sales tax or creating non-recovered sales tax reports; we’ve got you covered.
“Honesty is the cornerstone of all success, without which confidence and ability to perform shall cease to exist.”
-Mary Kay Ash
If you use UnitWise, you can set up a specific default sales tax rate in your preferences. It will allow you to calculate your sales taxes automatically as you create invoices for your customers. Take the guesswork out of the equation.
You can set preferences to add Sales Taxes for Shipping or choose whether you want to calculate the sales tax before or after the discount is applied. No more fumbling with a calculator trying to figure out the right percentage.
Handling Various Sales Tax Rates
You have two choices here:
- You can adjust their sales tax rate manually as you add the products to their sales receipt.
- Save time by setting up a custom sales tax rate in their Customer profile under the Other Info Tab for frequent customers.
State Sales Tax Changes
As of January 1st, 2019 multiple states have implemented new sales tax rates on products and services sold in their jurisdictions. If your sales tax rate has changed, you will need to update your settings in UnitWise.
Update your default sales tax rate by going to your profile, under Settings choose Sales/Order.
When you adjust sales tax individually based on the location of your customer, you will be able to track all sales tax transactions and tell whether you had any non-recovered sales tax or if there is a sales tax that needs to be remitted to MK if some sales tax was underpaid. Individual rules and situations may vary, so check with your tax professional before you proceed with any filing.
Non-recovered Sales Tax Reporting
If you want to see what your non-recovered sales tax was (or if there was any); you can refer to the Reports section: Home > Reports > Year-End/Tax.
You can run sales tax reports based on the previous calendar year or any custom dates. Every single time you record an invoice or a sales receipt with a tax rate different than yours, our system will mark the difference and add it to the report.
We hope this information provided additional clarity to collecting, recording, and updating sales tax rate. Remember to refer to the resources feature on Intouch and to update your settings with the new rate!
You can run sales tax reports based on the previous calendar year or any custom dates. Every single time you record an invoice or a sales receipt with a tax rate different than yours, our system will mark the difference and add it to the report.
We hope this information provided additional clarity to collecting, recording, and updating sales tax rate. Remember to refer to the resources feature on Intouch and to update your settings with the new rate!
Continuing Your Business Education
Follow us on Facebook, so you never miss exciting news and information.
Not yet a member of the UnitWise family? Click the button below to start your risk-free 15-day trial!
Start My 15-Day Free Trial
*Content found on the UnitWise blog is for informational purposes only. UnitWise is an independent business with no affiliation to Mary Kay®.
.png)
Comments
Post a Comment