Multistate- Understanding How Your Online Business Should Collect And Pay Taxes

There are three different forms of taxes that need to be paid by any business owner, which are local, state, and federal taxes each business owner should be aware of. Among the commonly paid taxes that can be enjoyed include sales and use tax that are often charged at the local and state level. Many different levels of taxation need to be paid with 45 states imposing a sales tax at state-level and 37 that allow local governments to levy their sales and use taxes.

One of the most common issues facing the people of the U.S. is knowing when you need to pay your taxes. Every business and individual needs to be aware of when their tax year ends to make sure your taxes are paid on time. Making sure your bookkeeping is up to date and the correct level of taxes are paid at the end of each taxation period will make it easy for you to keep track of your sales and use tax.

One of the most difficult aspects of understanding local and state sales tax is the varying rates of taxation that are levied across the U.S. State sales taxes are not charged in five states which means local governments need to be contacted to understand the level of sales taxes that can be charged.

The sales taxes charged across the U.S. vary largely with the state of Colorado lowering its sales taxes to just over two percent in 2020. The highest level of state taxes charged is found in California where taxes are charged at a rate of 7.3 percent. 

For more information: FOX Chronicle

Fox chronicle
by mac venucci
june 08, 2020