When it comes to sales tax, it’s pretty simple: States and local jurisdictions want to be paid. Because of a little thing called economic nexus, your online business may need to pay sales tax in a state you have no physical presence. Luckily, sales tax software makes it easier than ever for online stores to collect the right amount of sales tax and to file state sales tax returns on time.
If you’re losing sleep over tax, rest assured that sales tax software will help you correctly calculate, collect, and even file your tax returns. Let’s take a look at how it works.
Sales Tax Software Helps You…
Calculate Sales Tax
Sale tax rules vary by state, and some cities and municipalities have their own rules to complicate things. In the U.S., there are more than 11,000 sales tax jurisdictions.
That’s a lot to keep track of. But don’t worry, your sales tax software does it all for you. It calculates the tax you need to collect when a person from say, New York City, orders from your store. It figures out the right amount based on your economic nexus and the product you’re selling.
Collect Sales Tax
You need to know how much tax you’re supposed to collect. You also want to ensure the appropriate amount is collected with each sale. Sales tax software does it for you. It’ll tack on an extra 6% to a sale from Pennsylvania or 7.25% to a sale from California.
Streamline Tax Filing
Each state and local jurisdiction has its own sales tax filing rules. All those returns will add up if you’re selling across the country. Sales tax software helps you keep cool and get the returns on time, every time.
The software provides a report you can use to streamline filing at the right time.
Bonus: Sales Tax Software Can File and Remit Tax for You
Don’t want to worry about filing? Software can take that on for you. With TaxCloud’s enhanced services, we’ll automatically file sale tax returns in our member states and remit payments on your behalf.
In the states where we file on your behalf, you’re indemnified in case there’s an issue. We also respond to state sales tax notices for you, so you don’t have to stay up at night stressing about an audit.
Speaking of audits, the best way to avoid one is to make sure you get the three steps in the sale tax process down pat: Calculate, collect, and file. When you pay the right amount at the right time, you won’t wake up one morning to a nastygram from the state.
Put your sales tax worries to bed and register for TaxCloud today.