25 Oct Basics of NJ Sales Tax Filing at Alba CPA
Basics of NJ Sales Tax Filing at Alba CPA
If you are from New Jersey and reading this post, you might already know that as a business owner you are required to pay sales tax. If you are confused about NJ sales tax filing, this post is sure to make things easier for you.
Read the below mentioned basics about NJ sales tax filing and most of your doubts are sure to be eliminated.
Sales tax is the tax on final sale of a service or a product. So, let us assume that you are selling some kind of product that is taxable. Next you need to know are the states where you need to pay sales tax. Majority of the business owners know that they need to pay sales tax in the state that they operate from. However, there are many states where businesses are required to pay sales tax even if they do not have a physical presence in that state.
Registering for the license of sales tax
You need to be licensed properly before you begin to collect sales tax in New Jersey. Fortunately, as sales tax is a major source of revenue for the government, registering for license of sales tax is inexpensive. It is also very important to know that when you start collecting sales tax, you will be required to regularly complete the NJ sales tax filing.
Te sales tax that a business collects from the customer should be passed to the state. While this might look simple, many of the businesses find it hard to reconcile the collection and remittance. Thus, it is highly recommended that one should hire a certified public accountant to ensure that you always have professional help available for you when it comes to NJ sales tax.
After getting a sales tax license, you will also start receiving correspondence from state. Many of the license holders do not generally go through these notices. However, ask any tax expert and they’d suggest you to carefully go through these notices as they will provide you with information about any kind of changes in your sales tax account, address and form changes, rate updates, etc. For instance, there is a possibility that your sales have increased substantially in the last year and rather than remitting the sales tax to the state on a quarterly basis, they might want you to remit the tax on a monthly basis. If you miss this notice, you will not remit the tax on a monthly basis and this will attract interest and penalties.
Do not over or under collect
If you mistakenly over collect sales tax from the consumers, you will be required to remit the same to your state as over collection or refund the amount to the consumers. If by mistake you under-collect, you will still be required to remit the right amount. The surplus here will go from your pocket.
As you can see there are many different aspects of NJ sales tax and an average business owner might find these a little daunting. Hire a certified public accountant to make sure that the sales tax collection and remittance process is stress-free and accurate.