commission and sales tax

[oldcity]

hi guys,

just picked up my first commissioned account and i have a quick question:

for the sales tax that u pay for this kind of account - do u deduct the amount u paid the location and than pay sales tax or do u pay the tax on the full gross amount.

thx, jacob.

[Big Mike]

If you are asking how much sales tax you owe it is the % of gross before commision. I would pay commision AFTER you take out for sales taxes.

 

Mike

[midtenn]

My contracts clearly state what the account can expect in the way of sales commission.

Example: 5% of net sales which is equal to gross sales minus 8% state sales tax. It may be elementary but helps eliminate the possibility of any future misunderstandings.

Hope this helps.

[MountainMan]

I was wondering about this also. My account said he only wants enough to cover the electricity. He figured it would be 25 or 30 a month for my machine. It is a Dixie/Narco 180. He had it in his laundromat for a couple of years. I just have no clue what the machine will bring in.

[alyssamma]

Like others have said, taxes are always on grosses