Sales Tax Report

Premium Feature: This is a premium feature and may not be available on all plans. To access this feature, please upgrade to a supporting plan.
 

 

About the Sales Tax Report

Most states require businesses to obtain a license to sell good in their states. The license permits businesses to collect sales tax on their behalf and most importantly, pay them the sales tax they collect.

In California, the license is called a Seller's Permit. Other states may refer to the license as a Resale Permit/License, Sellers Permit, Certificate of Authority, Use and Sales Tax License/Permit Sales and Use Tax, Application to Collect/Report Tax. Not all states require a license, so check with the state agency that handles sales tax for the specific requirements where your business is located.

Reporting frequencies vary from business to business and typically depend on the sales volume of a business. For example, in California, your payment frequency and schedule is determined when you register for your license based on your anticipated sales volume. Very small businesses with a low anticipated sales volume typically report and pay their sales tax yearly, while other business with a medium to high sales volume are required to report and pay quarterly or monthly.

WorkingPoint's Sales Tax Report helps you complete your sales tax form. As you invoice your customers, WorkingPoint is tracking where your sales occurred and how much of the total sales were taxable or non-taxable. For taxable sales, we track how much you charged in sales tax and the rate charged per item. Use this report to see your taxable and non-taxable sales broken down by State, County and City including the tax rate per taxable sale and the total tax collected.

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Viewing Your Sales Tax Report

To view your sales tax report:

  1. Click the Reports tab.

  2. Under Tax Reports, click Sales Tax Report.

  3. From the Date Range drop-down menu, choose the date range you want to see or create your own custom range by entering "From" and "To" dates and clicking "Refresh List." To see all entries from the beginning of your records, leave "From" blank. To see all entries with future dates, leave "To" blank.

  4. From the Report Format drop down menu, choose the report output option.

    • To view the report on screen, select On Screen Display
    • To print a summary version of the report, select PDF Summary
    • To print a detailed version of the report, select PDF Detail
    • To export the report to Microsoft® Excel, select Excel (XLS) Detail
    • To export the report to Open Office, select Open Office (XML) Detail
  5. Click Run Report.

When you see the report on the screen, you can:

  • Click Show All Invoices to expand the report to show all of the invoices for each city, or click the [+] icon to expand a particular state, county or city.

  • Click Hide All Invoices to collapse the report to show only the state, county and city totals, or click the [-] icon to collapse a particular account.

  • Click an invoice link to view the invoice for that recorded sale.

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Reading the sales tax report

The WorkingPoint sales tax report shows you all of your invoiced sales for the date range specified. You'll see your taxable and non-taxable sales broken down by State, County and City including the tax rate per taxable sale and the total tax charged.

When you open the report, you'll see your sales grouped by:

  • State  - This is the sum sales for all counties in the state

  • County - Under each state, you'll see your sales totals broken out by the counties

  • City - Under each county, you'll see your sales by individual city

  • Undefined Tax Agency - This is a grouping of all sales not associated to a US City

  • Invoice - Under each city and the Undefined Tax Agency, you'll see the invoice for each sale .

  • Invoices are assigned to a City or the Undefined Tax Agency according to the following rules:

    • If the purchaser's shipping zip code is in the same state as your company’s zip code (recorded in Settings), the shipping zip code is used

    • If there is no shipping zip code for the purchaser and the purchaser's billing zip code is in the same state as your company’s zip code, the billing zip code is used

    • If there is no zip code provided in either the shipping or billing address for the purchaser:

      • Your company’s zip code is used

      • If your company’s zip code was blank when the invoice was saved, the invoice appears in a section at the bottom of the report titled “Undefined Tax Agency”

  • Total Sales

For each group, you'll see the following totals:

  • The total sales amount

  • The total non-taxable sales

  • The total taxable sales

  • The total charged in tax

For each invoice, you’ll see the above totals plus the tax rate(s) used to calculate the tax.

When you see the report on the screen, you can:

  • Click Show All Invoices to expand the report to show all of the invoices for each city, or click the [+] icon to expand a particular location.

  • Click Hide All Invoices to collapse the report to show only the state, county and city totals, or click the [-] icon to collapse a particular location.

  • Click an invoice link to view the invoice for that recorded sale. 

Note: If you collect sales tax, be sure to enter your zip code in the Company Information section of your account Settings so WorkingPoint can help you calculate sale tax. Without a zip code, WorkingPoint cannot pre-populate tax rates for you.


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Common Questions:

How Sales Tax Rates are Determined and Calculated

WorkingPoint is equipped with a full sales tax rate table for all cities, counties and states in the U.S. and it's updated frequently. When you add a taxable item to an invoice, WorkingPoint pre-populates the tax rate for the item based on the tax table rate for the zip code as follows:

  • If the purchaser's shipping zip code is in the same state as your company’s zip code (recorded in Settings), the shipping zip code is used

  • If there is no shipping zip code for the purchaser and the purchaser's billing zip code is in the same state as your company’s zip code, the billing zip code is used

  • If there is no zip code provided in either the shipping or billing address for the purchaser:

    • Your company’s zip code is used

    • If your company’s zip code was blank when the invoice was saved, the rate is 0 because WorkingPoint cannot determine where the sale occurred

  • If the purchaser's zip code is in different state as your company's zip code (recorded in Settings), the tax rate is 0 because this is an interstate sale and typically not subject to tax. 

WorkingPoint calculates tax on a per line basis; multiplying the item total times the tax rate and rounding to the nearest penny. For example, if you sell two taxable items: WorkingPoint figures the tax for the first item and rounds to the penny, then figures the tax for the second item and rounds to the penny, then adds them together for the total tax owed as displayed in the invoice totals section.

If you have entered a discount on an invoice, WorkingPoint applies the discount to each item (prorated by item total) before calculating tax.

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Why is my sales tax rate 0.00%?

Sometimes, you'll have an invoice that includes taxable items with a tax rate of 0%.  One example of this is when the purchaser's zip code is in different state from your company's zip code. In this case, WorkingPoint defaults the tax rate to 0% because interstate sales are typically not subject to tax.

On the sales tax report, sales of taxable items are always reported as taxable sales, even when the tax rate is 0%.  This enables you to choose to use the taxable sales total or the total sales total (non-taxable and taxable) for reporting purposes, which is helpful if your state requires you to track out-of state taxable sales.

Another reason for a zero sales tax rate, is if there is no zip code provided in either the shipping or billing address for the purchaser and your company’s zip code was blank when the invoice was saved, WorkingPoint cannot determine where the goods or services were sold, so we cannot pre-populate a sales tax rate and the invoice appears in a section at the bottom of the report titled “Undefined Tax Agency.”

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