How to File State Sales Taxes
Each state's laws are different regarding sales taxes. Differences range from percentage of sales tax charged to which industries are exempt from sales taxes. In a number of states, there are no sales taxes charged on services. It's important to check with your state's department of revenue to find and follow the requirements.
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Things You'll Need
- Sales tax reporting form
- Exempt and non-exempt sales figures for each month
- Company employer identification number
- Assigned identification number for your sales and use tax account
- Checking account information with the ACH and account numbers
Instructions
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1
Determine your state's rules and regulations for filing sales taxes. Some industries such as services-oriented businesses are exempt from the payment of sales taxes. In each state the rules, percentages and form numbers are different, but the information is always located on the state's department of revenue website.
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2
Locate your state's online sales tax filing website. You will need to enter the name of your business, the EIN, your name, address and Social Security numbers. Most states take their time in approving a new business for filing sales taxes online, but registering and enrolling in the state's e-pay system is the fastest and easiest way of assuring that your sales taxes get paid on time.
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3
Calculate the exempt sales from the non-exempt sales. Retail stores will often sell both taxable and non-taxable items. Water is non-taxable. Flavored water is taxable. Foods ready to eat are taxable, foods that must be prepared are not. Milk, cheese and eggs all are nontaxable.
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4
Make sure your POS system is capable of generating a report of your sales taxes owed and separating the exempt from the non-exempt sales. Quick Books is a highly competent accounting program that can handle tasks like this with relative ease.
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5
Fill out the sales tax report form for your state, using the instructions on the front of the sheet. The bottom line figures are used to calculate final totals for payment. If you completed step two and enrolled to file and pay online, use the numbers in the form to transfer to the online form and set it to automatically withdraw the amounts from your business account.
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6
Repeat steps 3 and 5 on a monthly basis, ensuring that you are paying enough sales taxes through the year so you don't get hit with a penalty at the end of the year.
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