{"id":93779,"date":"2022-02-03t22:04:22","date_gmt":"2022-02-04t03:04:22","guid":{"rendered":"\/\/www.g005e.com\/?p=93779"},"modified":"2022-12-22t00:41:04","modified_gmt":"2022-12-22t05:41:04","slug":"the-real-cost-of-sales-tax","status":"publish","type":"post","link":"\/\/www.g005e.com\/2022\/02\/03\/the-real-cost-of-sales-tax\/","title":{"rendered":"the hidden cost of interstate sales tax"},"content":{"rendered":"
most small businesses are probably paying too much. or, too little. who knows?<\/strong><\/p>\n by 卡塔尔世界杯常规比赛时间<\/em><\/p>\n the true cost of interstate sales tax compliance borne by small businesses is fast mushrooming into a problem of national proportions, according to new research. and while it may be a big opportunity for accounting firms, most small business owners are probably spending too much, or just as worrisome, too little.<\/p>\n more on salt:<\/strong> when tax collectors go digital<\/a> | tax regs for the metaverse<\/a> | sales & use tax costs are higher than anyone thought<\/a> | survey: nobody loves the wayfair decision<\/a> | accountants to small biz: \u2018be nimble, be quick, be careful\u2019<\/a> | turn client wants into needs<\/a> | the 15 absolutely necessary services for cas clients<\/a> | a job description for client accounting services<\/a> | salt: the small business disaster waiting to happen<\/a> | survey: rough seas ahead for small business<\/a> |<\/p>\n according to a 卡塔尔世界杯常规比赛时间 survey, 39 percent of accountants believe their small business clients were \u201cmostly not in full compliance” with cross-border collection and remittance requirements. each of those non-compliant clients is a potential problem and an opportunity for their accounting firm.<\/p>\n now a new avalara-sponsored survey looks more closely at \u201cemerging small businesses\u201d (esbs) with under 20 employees, and small and medium-sized businesses (smbs) with 20-50 employees.<\/p>\n esbs were found to have up to three employees dedicated to complying with sales tax obligations. they earned an average of $83 an hour for an average of 131 hours per month, a total cost of $11,968 a month.<\/p>\n ouch!<\/p>\n smbs spend more time on compliance<\/strong><\/p>\n and it was ouch for smbs, too, where two to five employees earned $98 an hour for a total average of 163 hours per month, accounting for $17,672 per month.<\/p>\n smbs had to spend more time on meeting their sales tax obligations\u2014<\/p>\n to carry this extra burden, 62 percent of smbs had to hire external help, as did 39 percent of the esbs.<\/p>\n the numbers varied with industries, of course. retailers in both categories spent an average of 209 hours per month on sales tax compliance. manufacturers spent 149 hours. and despite their expertise in information technology, software companies needed 121 to comply.<\/p>\n the crux of the problem<\/strong><\/p>\n the crux of the problem is the variety of sales tax requirements in america\u2019s 50 states, not to mention a few territories. no two are the same, and they are always changing. some exempt food, for example, while others exempt only some foods, though in either case, something probably has to be calculated and reported.<\/p>\n example: for six months in 2010, candy was taxable in washington stat\u2014unless, as all cpas know, the candy contained flour. but today, all candy is exempt. tomorrow\u2026well, if you have a client in the interstate candy biz, go look it up\u2014fifty times.<\/p>\n all states have thresholds under which an out-of-state seller does not have to collect or pass along sales tax. in many, however, the seller must at least register as a seller, and sellers need to be able to prove their level of sales.<\/p>\n in kentucky, for example, the threshold is 200 transactions or $100,000 in gross receipts for tangible and digital sales, including exempt sales, during the preceding or current calendar year.<\/p>\n remember that. and multiply it times 45 to include all states with sales tax. or 48 if you want to include washington d.c. puerto rico, and guam. or 148 if you want to include most of the 100+ independent sales tax jurisdictions in alaska.<\/p>\n the survey found that 78 percent of esbs sold less than $50,000 in states where they weren\u2019t registered for sales tax. not much problem there. but 80 percent of smbs sold an average of $678,000 in states where they weren\u2019t registered, which they should be even if all their sales are exempt.<\/p>\n audits<\/strong><\/p>\n given the confusion and difficulties, states can\u2019t be blamed for demanding audits of sales tax compliance. no surprise that nine percent of esbs and 19 percent of smbs had been audited for sales tax compliance within five years previous to the survey. most were completed within three weeks, but some dragged on for five months or more. employees spent an average of 35 hours overseeing and responding to an audit. audits were 218 percent more costly for the larger companies.<\/p>\n and of course, there were penalties to pay.<\/p>\n automated software can help keep track of and comply with sales tax obligations, and there are agents certified under the streamlined sales and use tax agreement who can perform all sales and use tax functions.<\/p>\n still, america\u2019s labyrinthine obstacle course of sales tax rules is a good reason for mom \u2019n\u2019 pop to just stick to their knitting and stay local.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"\n
pro members:\u00a0<\/strong>log in here<\/a>\u00a0or\u00a02022世界杯足球排名 today<\/a>.<\/p><\/blockquote>\n
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