FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 1 7100. General Accounting Procedures, 7181...
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FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 1 7100. General Accounting Procedures, 7181 Collecting and Reporting Sales Tax A. The Purpose of This Policy State laws require retailers to collect, report and pay to state sales taxes for certain goods sold. The purpose of this policy is to assure compliance with those laws. Continue ►
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Transcript of FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 1 7100. General Accounting Procedures, 7181...
FINANCIAL MANAGEMENT GUIDE© Marin Management, Inc. 1
7100. General Accounting Procedures, 7181
Collecting and Reporting Sales Tax
A. The Purpose of This Policy
State laws require retailers to collect, report and pay to state sales taxes for certain goods sold. The purpose of this policy is to assure compliance with those laws.
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FINANCIAL MANAGEMENT GUIDE© Marin Management, Inc. 2
7100. General Accounting Procedures, 7181
Collecting and Reporting Sales Tax
B. Responsibilities
The general manager and the accountant are responsible to know which goods are subject to sales tax and the sales tax rate. The general manager is responsible for accurate collecting the daily reporting to the accountant of retail sales subject to sales tax and the amount of sales tax collected.
The accountant is responsible for the accurate monthly posting of sales tax liability. The accountant is also responsible for preparing the sales tax period (usually monthly or quarterly) and annual State Sales & Use Tax Return and paying the amounts due to the state.
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FINANCIAL MANAGEMENT GUIDE© Marin Management, Inc. 3
7100. General Accounting Procedures, 7181
Collecting and Reporting Sales Tax
C. Sales Tax Rates
The general manager and the accountant are responsible to know which goods are subject to sales tax and the sales tax rate. The general manager is responsible for accurate collecting the daily reporting to the accountant of retail sales subject to sales tax and the amount of sales tax collected.
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CLICK HERE FOR STATE SALES TAX RATES
CLICK HERE FOR CALIFORNIA CITY ANDCOUNTY SALES TAX RATES
FINANCIAL MANAGEMENT GUIDE© Marin Management, Inc. 4
7100. General Accounting Procedures, 7181
Collecting and Reporting Sales Tax
D. Recordkeeping
Keep records of retail sales, sales tax collected and sales tax paid to the state for at least six years.
E. Tax Law Changes
Tax rates and laws change occasionally, so check with the state taxing authority and review its bulletins regularly.
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FINANCIAL MANAGEMENT GUIDE© Marin Management, Inc. 5
7100. General Accounting Procedures, 7181
Collecting and Reporting Sales Tax
