State and Local Tax Resources
Tips & Advice to help you make your decision on State and Local Tax Resources
Along with federal taxes, businesses and corporations must also pay local and state taxes. Figuring out regional tax laws can be particularly challenging since tax rates and tables differ by locality. Utilizing state and local tax resources may provide your business with a tax planning advantage.
Just like Uncle Sam, most U.S. state governments require businesses and individuals to file income taxes. However, every state also requires that companies pay taxes for unemployment insurance and workers' compensation insurance. Most state websites provide online information and forms pertaining to regional tax obligations. Many state and municipal governments also impose sales taxes on businesses. Sales taxes are collected from companies that sell a product or taxable service. In theory a sales tax is levied on the consumer, but it is still up to businesses to collect and pay their region's sales taxes periodically. Sales tax percentages also vary by region.
If you are unsure of your regional tax obligation, you may want to seek help from state and local tax resources like websites, tax consultants, or other types of reputable tax professionals. Business.com is a trusted resource intended to help you explore your options. For more information, visit the links to the left of your screen.
Calculating and Charging Sales Tax
Collecting sales taxes can be complicated. Here's the help you need.By Kay Bell, Owner SKB Editorial Services Consumers complain about sales taxes, but they are an even bigger headache for businesses who must calculate and remit these funds on a broad range of products – in some areas services as well – to a dizzying array of government entities. Even if there is no state levy, you may find that cities, counties or special taxing jurisdictions (e.g., lodging, transportation areas) demand you collect and remit sales taxes.
There are three steps you can take to ensure that your business meets its sales tax responsibilities:
- Understand general sales tax concepts
- Find the specific rules for your state and locality
- Turn to a specialty sales tax firm
Get the scoop on sales taxes
Although sales taxes are administered at the state (or lower) level, there are a couple of Internet sites that offer an overview of these taxes.
Try: CCH's Business Owner's Toolkit leads the online pack in providing a good discussion of sales taxes and how they affect small business.
Find state-specific sales tax data
Find out what your state or locality demands.
Try: CCH provides links to each state's tax department where you can get specifics on rates and filing/payment requirements. If you're looking for regular updates on changes to state sales tax laws, you'll want to regularly visit Vertex's Tax Cybrary and/or sign up for the company's free newsletters for regular email alerts. The Federation of Tax Administrators annually updates its table of state sales tax rates. And tax publisher RIA/Thompson puts out its handy "Guide to Sales and Use Taxes" each year.
Get help collecting and remitting sales taxes
Because sales taxes are continually collected and must be regularly remitted to various jurisdictions, you'll want to at least look into outsourcing the job.
Try: The browser-based Sales Tax O Series from Vertex offers a system of tracking, collecting and sending in your various sales taxes. Tax Partners provides a white paper detailing its sales tax services so you can see if it's the right route for you. And CCH, in addition to its editorial outline of sales taxes, also offers companies a sales tax compliance program, with special options for particular industries (e.g., restaurants, manufacturing, etc.).
Free Sales Tax Lookup by State, County or City. Try it Now!
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