Reporting

Recording, reconciling, and reporting your sales tax transactions are crucial for compliance. As a business owner, it’s important to recognize that filing sales tax returns and submitting payments for those returns are two distinct responsibilities. 

Even if the deadlines for filing and submission are the same, maintaining separate entries on an internal checklist can help ensure that you don’t overlook any steps or deadlines!

The requirements for filing sales tax returns differ by state, but many share common elements. It’s important to be aware of the deadlines and frequency with which you need to file and remit sales tax according to your state and local regulations. Key details to understand include:

• Due dates: Typically, a return must be submitted on a specific day of the month after the reporting period. For instance, if you collected sales tax in February, you will need to file your return by the 30th of the following month, which is March 30th. The exact date can differ—such as the 15th, 20th, or 30th—but it will remain the same throughout the year for a given jurisdiction.

• Weekend and holiday deadlines: Keep in mind that states may adjust their due dates if they fall on a weekend or holiday. Most states will shift the due date to the next business day, so it’s a good idea to check their practices each year.

• Filing Frequency: Some states require all sales tax returns to be filed monthly, quarterly, or annually. Many states implement a step-up process, meaning that as the amount collected rises, the frequency of filing will also increase.

• Electronic filing requirement: Most states require businesses to file sales tax returns electronically once they hit a certain sales volume. Electronic filing streamlines workflow, enhances accuracy, and speeds up processing. After reaching the minimum threshold, be sure to update your checklists with the new due dates to ensure ongoing sales tax compliance.

Managing sales tax obligations while growing your business or entering new tax jurisdictions can add significant pressure to your daily operations. Contact us to discover how Taxually can help you simplify your sales tax process and tackle compliance challenges with the support of our exceptional tax experts!

FAQ

• Record-keeping
• How do I make sales tax payments?