The SALTcast

Are you looking for a way to build your sales tax process to help your business grow successfully? Let’s discuss the pillars of success that outline the principles you need to know.

From Pillars to Profit

What do pillars have to do with sales tax?
Hear me out.
Pillars serve structural purposes. They provide support, stability, and alignment. They serve as protection and prevent damage from external forces. They are an essential component and play a critical role in ensuring stability.
The same thing goes for having a good sales tax process. The right pillars will keep your business safe, stable, and aligned.
So let’s make sure you have your sales tax pillars in place!


Sign up for a Free What's Next Call to discuss how we can help at any part of your process:  https://peisnerjohnson.com/whats-next/

If you are a business owner who charges customers for shipping and handling, it's important to understand the rules and regulations for charging sales tax on these items. Failure to comply with the laws could result in penalties and fines, so it's crucial to get it right. In this blog post, we'll explain some things you need to know about charging sales tax on shipping and handling, including the rules, exceptions, and best practices.

If you are unsure about what you have been doing sign up for a What's Next call today.

Understanding how to calculate sales tax is as simple as multiplying the sales tax rate times the sales price of the item you’re selling. However, as simple as it may sound, there are nuances depending on your location and situation. Learning how to correctly charge sales tax in each state can create complexity. Let’s talk through it.

If you have any questions let's chat HERE.

A new year brings new sales tax changes for some states. As of January 1, economic nexus has taken effect and become active in Missouri. More changes may follow suit. 

It’s a new year, which means there are changes to be aware of! State tax changes take effect either at the beginning of the calendar year (January 1) or the beginning of the fiscal year (July 1). According to the Tax Foundation, “thirty eight states have noteworthy tax changes taking effect.” Check your state here to stay informed on any changes that may affect you or your business. 

For today’s focus, we are going to take a look at the change in states with economic nexus. This summer will mark 5 years since the momentous 2018 Supreme Court case South Dakota v. Wayfair, Inc. decision that established the sales tax landscape retailers and eCommerce sellers know today. Many businesses are still trying to navigate their way through the new obligations; but as of January 1, every state with sales tax has economic nexus.

If you feel that it is time to re-evaluate your nexus footprint schedule a call with us today: https://peisnerjohnson.com/whats-next/

What does due diligence look like in the sales tax world? As a business owner, due diligence consists of analyzing the accuracy and taxability estimates and your businesses sales tax compliance. It is a process of solving tax problems before they negatively affect your business. This will drastically reduce the amount of unpaid taxes you may owe a state. 

Questions Answered: 

What should I be looking at?

What ate some blind spots?

We offer a free consultation to help you through your due diligence process. Conducting proper due diligence on unpaid taxes or a state audit assessment can greatly reduce your business’s total exposure and can save you hundreds of thousands of dollars. Find peace in mind, we would love to help you through your due diligence process. There is confidence in collaboration.
 
Reach out to me here: ryanj@peisnerjohnson.com

Jamie assists businesses in all aspects of state and local tax, from compliance, to audits and administrative proceedings, through litigation. Outside of work, Jamie serves a variety of
organizations including MothersEsquire, Trinity College Board of Trustees, a local dental
non-profit, and several bar associations. Jamie enjoys raising her fiercely independent, impish daughter; singing; and hiking around Maine with her husband, daughter, and dogs.

Conversation Topics Include:

 - What does Brann & Isaacson do for Clients?
 
 - What does Peisner Johnson and Brann & Isaacson have in common?

 - What recent legislation changes are your clients experiencing?

 - What kind of tax traps are you seeing that your clients are dealing with?

 - What advice can you give to businesses?

You can follow Jamie on linkedIn here: https://www.linkedin.com/in/jamieszal/

While serving the people in Guatemala Jeremy Porter was able to see first hand the poverty of the people living near rivers, streams and the coast. He also saw the amount of plastic and trash that was being thrown into these rivers and streams that was reaching the ocean. When he got home and was studying in college he came up with the Idea of Repurpose Recycling. Repurpose Recycling not only helps keep trash out of our oceans but helps those in poverty gain access to more food, freshwater, and money. Listen in as I interview Jeremy about his journey and what he and his company has been able to accomplish.

Check out Jeremy on Linkedin: https://www.linkedin.com/in/jeremy-porter10/

A common question amongst Amazon sellers is, “If I am part of the Fulfillment by Amazon (FBA) program, am I obligated to collect and remit sales tax?” This can be a tricky question to answer as it is continuously changing and evolving per state. States and local municipalities continually shift and change their tax rules and stances. To complicate things further, Amazon continues to build new warehouses in every state. So finding an accurate answer to this question can prove to be grueling. We’re here to help.

Recent Changes

In general, most states agree that any inventory stored in their state creates nexus which in turn imposes a tax obligation upon sellers. However, the state's stance on this can be ambiguous. Sellers that utilize a marketplace facilitator find that selling through a third party warehouse can throw a wrench in the works. Why? Because you don’t always have control over where your inventory is. Typically, inventory creates physical nexus. Though, Arizona has recently changed its stance on this matter.

If you want to chat about how these new changes may affect you schedule your What's Next call today! 

Valerie has spent 10 years in Cloud Accounting technology. At LumaTax, she's empowering SALT and Client Accounting Services teams to streamline, elevate, & grow their sales tax advisory services (such as nexus studies, threshold monitoring, registrations, and voluntary disclosures). She partners with accounting professionals through technology transformation as they work to deliver an improved client experience and has a passion for learning and teaching new tools.

LumaTax is a sales tax software that has the ability to power your sales tax advisory arm of your accounting firm. With LumaTax you can help advise your business clients on where they may have some sales tax responsibilities or some serious sales tax exposure. LumaTax gives you the ability to not only add some tremendous value to your firm but provide some much needed peace of mind to your clients.  Come listen in as Valerie discusses LumaTax and how it can help you.

You can find Valerie on Linkedin here:
https://www.linkedin.com/in/valerieheckman/

You can find LumaTax here:
http://www.lumatax.com/

We have spoken to 100s if not 1000s of small to medium sized businesses that are concerned about their sales tax responsibilities. After a discussion with them  we often find that there is nothing that  needs to be done at the moment. We will never recommend buying things that you don't need. So, I was curious what our recommendations are when it comes to this situation. I invited Paul on to discuss this with me today.

Additional Questions Answered:

Do I need to collect sales tax?

As a small to medium sized business do I need to collect sales tax?

As a startup do I need to collect sales tax?

Should I sign up for TaxJar, Avalara, Sovos?

What should I do right now about sales tax?


If you are unsure of what to do about sales tax a great place to start is with our resources page https://peisnerjohnson.com/resources/. If your situation seems more complicated and you can't find the answers that fit your business situation, join us on a what's next call: https://peisnerjohnson.com/whats-next/

On our podcast episodes we talk a lot about getting on a What's Next Call with us. What we haven't done is go through what a What's Next Call consists of. While this may not be an actual recorded call it is as close as it gets. I asked Paul and Danny to give us a reenactment of a recent call with a new contact that had some questions.  In this particular scenario a business got some bad advice from a professional but now they are suffering the consequences.  They ended up collecting sales where they weren't registered to remit the sales tax. This results in tax being collected and not being remitted. This can be considered as fraud in the states eyes. Surprisingly, this is a very common situation that we run into. So, get your popcorn and enjoy.



A What's Next Call has the potential of changing the tide of your sales tax woes. If this sounds like a similar situation you find yourself in, reach out to us today! https://peisnerjohnson.com/whats-next/

When someone new engages with us we almost always start with a sales tax risk analysis. Once you find out that you have some sort of sales tax responsibility this analysis should be your next step. With this analysis you will receive a report that will help you decide what to do next. This could mean that you need to get registered for sales tax, engage in a VDA, or do nothing. Since Paul and Jason have engaged in literally thousands of these. So, I asked them to give me some idea of what they cover in one of these sales tax risk analysis.

Additional Questions Answered:

What is economic nexus?

What is physical Nexus?

Why is is important to determine the taxability of my product and services?

Why is knowing how I sell my product important when it comes to sales tax?

What can I expect from a sales tax risk analysis?

Can I do a risk analysis on my own?


If you would like to know what your sales tax responsibilities are or you had one done and would like a 2nd opinion? Sign up for a free What's Next call and we can get it rolling. https://peisnerjohnson.com/whats-next/

We talk to people with businesses on a daily basis that are unhappy with their sales tax compliance process. Those we talk with are either aware or unaware with the flaws in their sales tax compliance process. What they really don't recognize is that there are different solutions to their sales tax woes that they did not know existed.

 Additional Questions Answered:

What does sales tax automated software cost?

What re the pros and cons of sales tax automated software?

is switching sales tax providers a lot of work?

does automated sales tax software provide sales tax consulting?

What should I expect to get from a third party sales tax compliance provider?


If you are unsatisfied with your current sales tax compliance process you are only a What's Next call away from discovering what is truly possible. Schedule your call today here: https://peisnerjohnson.com/whats-next/

Sales tax compliance can be a major burden for a business. As a CPA your clients are looking to you as a trusted advisor and mentor to help them navigate any and all tax issues. If your clients lose sleep over sales tax, you may find that you probably do, too.

 There’s a lot to know, and it can be taxing (no pun intended) to stay up to date while doing all the other functions of your job.

That’s why we have come up with a simple approach in helping your clients stay compliant so they can avoid exposure. We put together this quick guide created for accountants, bookkeepers and CPAs to help keep their clients compliant. 

 Today we discuss the 3 most important questions to help give you a clear picture of your clients tax responsibility and potential liability. 

Additional Questions Answered:

Does my client have economic nexus?

Does my client have physical nexus?

Is what my client sells taxable?

Is my client responsible for collecting sales tax?

Being a good mentor and consultant is knowing when to ask for help. We have a few resources we are happy to share with you. Please utilize our state-by-state nexus guide and we will respond indicating whether there's an issue in that state or not; we will provide the background about that state. We are also available to help guide you through any further questions you may have through our free “What’ Next Call” and we can provide more education. Even if we don’t have a partnership or agreement, we are always more than happy to provide guidance and peace of mind for you and your clients. There is confidence in collaboration, and we are ready to collaborate.

Did you know that you may potentially be paying taxes that you don’t have to pay? It is becoming more important now than ever for businesses to conduct a sales tax refund review. By doing so they have the potential of saving money and better yet, getting money back from overpayments made on their acquisitions of expense and capital asset items. Listen in to see if you should consider a refund review for your business.

If you decide that your business would benefit from a sales tax refund review, schedule your What's Next Call Today! 

There are so many ways that you can sell your product. One of the most popular ways is through a marketplace facilitator like Amazon, Ebay, and Walmart. In many cases a seller can de-register their sales tax accounts if they only sell on a marketplace facilitator. So, I asked Paul and Jason, under what circumstances would a seller need to remain registered or get registered for sales tax.

Additional questions answered:

What is a marketplace facilitator?

If I only sell on Amazon do I have nexus and have to collect sales tax?

How does materiality play into determining wether or not I should register for sales tax?

If I have inventory in a state do I have to register to collect sales tax?

If I only sell on a Marketplace can I just deregister all of my sales tax accounts?

What are some of the pitfalls I will run into with sales tax?

Do you do significant sales on a marketplace facilitator and are wondering what your sales tax responsibilities are? Don't worry, you are not alone. Jump on what's next call with us here: https://peisnerjohnson.com/whats-next/  and get some solid peace of mind.

When you are getting your business started there are a lot of things to worry about. One of those things may or may not be sales tax compliance. A lot of people reach out to us about their situation. I invited Paul and Jason on to give their advice on what you should be doing.

Questions Answered:

How  do I know when I should be collecting sales tax?

What is sales tax nexus?

Where should I register for sales tax?

Does sales tax keep you up at night?

When I first start my business do I ned to collect sales tax everywhere?

Do I have to do anything about sales tax when I fist start my business?

Do I have to collect sales tax after I hit economic nexus thresholds?

When you are looking to get compliant with sales tax you will find a few different "automated" solutions. Peisner Johnson has been  in the sales tax trenches for the last 30 years and we have used every sales tax software solution out there.  But, to truly say that your sales tax is fully automated isn't really accurate. What is automated is truly amazing and well worth it. Let's talk about that.

Questions Answered:

Is sales tax automation "set it and forget it?"

What about sales tax prevents it from being totally automated?

What is truly automated  with sales tax automation software solutions?

What does sales tax software do right?

Do I need to talk to a sales tax professional?

How do I know the correct sales tax rates?


If you are looking for a sales tax compliance solution or you are not super happy with your current solution, lets chat. You can schedule a call with us here: https://peisnerjohnson.com/whats-next/

I was able to meet with Matthew Holman of Qpilot. Qpilot is an amazing company that will help your company develop and deliver a seamless and unified subscription experience for your customers.  As more and more businesses go online you want to make sure your customers are having the best experience possible to keep them coming back. This is where Qpilot excels and can take your business to the next level.

Additional Questions Answered:

What is Qpilot?

What can Qpilot do for me?

How do I set up a subscriptions for my website?

Why is it important to have a subscription product or service?

How does Qpilot work?

If you have wanted or even just considered adding a subscription option to your website and provide a better user experience Qpilot makes it easy. You can connect with Matthew here: https://www.linkedin.com/in/holman-matthew/ To learn more about Qpilot check out the website here: https://qpilot.cloud/ You can also join Share House which is a community of like minded people and businesses: https://sharehouse.com/join/

If you are currently selling your product or service online you are probably aware of economic nexus. You are probably even tracking your sales and transactions to make sure you aren't hitting economic nexus thresholds. But, did you know that anyone that you contract to fulfill a service give you nexus in that state? And, that you need to register for a sales tax permit and start collecting sale tax? Today we talk through a few different scenarios where you may have physical nexus.

Additional Questions Answered:

Do do third party contractors give me sales tax nexus?

What are the economic nexus thresholds?

Do common carriers give me physical nexus?

Do deliveries using my own vehicles give me physical nexus?

Does dropshipping my product give me physical nexus?

If you are unaware of your own sales tax responsibilities the best place to start is with nexus. Use our free Nexus Calculator to see where your responsibilities lie.