Jobber Tax Rates
Jobber Sales Taxes Explained
Disclaimer: I am not a tax professional and this infograph is not meant to replace the advice of an accountant, bookkeeper, or tax professional. Tax laws and guidelines may vary by state, county, and city. Always have a professional guide you in tax rate set ups and eligibility.
This sales tax graphic is not applicable in CANADA.
Jobber Tax Rates
Tax rates in Jobber can be set up under the settings menu. Tax rates are considered a single percentage rate which will be going to one specific account in QBO for collection and reporting.
Jobber Tax Groups
Tax rate groups are collections of single tax rates such as state, county, and city tax rates. Tax groups are set up under the settings menu.
It is very important to check back with QBO to see how your syncs are pushing over.
Determining What Is Taxable and What Is Not
Again, I can’t stress this enough I am not a registered, professionally trained accountant, bookkeeper, or tax professional. The intent of this article and graphic is to break down the sometimes complicated subject of sales tax and should not be taken as stand alone financial advice.
Is Labor Taxable?
In most States, labor alone, is NOT TAXABLE.
Performing a service such as repairs requiring part replacement or equipment installation, the work may be considered taxable dependant on whether tax was paid on the material you are using.
Installations of customer supplied material and equipment would be considered non-taxable in most cases.
Did You Pay Tax On The Product?
If you are installing or replacing a product that you have purchased and paid tax on that product, sales tax should not be charged separately to the customer.
The parts house or supplier you paid sales tax to will be responsible to remit the sales tax collected on that product and it does not need to be taxed again by your business.
When is charging tax necessary?
There are two circumstances where sales tax would be added to a sale of products within your business.
If you are the manufacturer of the installed or applied product
If your business developed and/or manufactured the products being installed at your clients properties, this would be considered a taxable product.
If the product you are re-selling is a taxable product but has not yet been taxed.
If your business developed and/or manufactured the products being installed at your clients property, this would be considered a taxable product.
If you did not have to pay taxes on a taxable product you are now the entity responsible for collecting and remitting the tax on that product.
How Is Tax Rate Determined?
Sales tax rates are generally based on the location of the buyer. If you service a large area and have questions regarding whether your products are taxable it is worth the time and investment to involve a professional bookkeeper or accountant to help you during the initial set up or transfer to Jobber or when integrating QBO.
Tax Exempt Customers
If a customer is tax exempt, tax rates may be removed from either the client level or on a single invoice. Tax exemption may also need to be set for the individual within QBO as well. Always test invoices when trying a new process.
Talk To A Sales Tax Expert
It is always best when starting your business or after periods of growth to check in with an accountant, bookkeeper, or sales tax expert to ensure your tax rates are correct and allocating or reporting properly to QBO.
Tax rates between Jobber and QBO can cause stress and frustration and knowing exactly what is taxable and what is not is critical in avoiding miscalculations, incorrect remittances, or audits.
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