bhumphrey829 Posted July 2, 2013 Share Posted July 2, 2013 Okay, so I have applied my tax exempt certificate. Now how is the best way to do this? Do I put money back every time I pull from a machine for my taxes or just how do I make sure I have enough money for my taxes at the end of the quarter. I'm assuming that's how often I will pay them. Link to comment Share on other sites More sharing options...
AZVendor Posted July 2, 2013 Share Posted July 2, 2013 If you already know the frequency of the tax payments due, then put aside a percentage equal to the taxes as you make your collections and hold it until you need to make the payment. You should also plan on estimated federal tax payments too, if you are self-employed. Put aside a percentage equal to your anticipated federal tax rate so you will have the money available when it is due in April. Remember that self-employed taxes due are higher than what would be withheld from a payroll check, because the employer pays 1/2 the payroll tax. Now you are going to be the employer, essentially, so you will pay it all, though the IRS gives a small tax break. Don't forget depreciation of your equipment on your tax returns. Link to comment Share on other sites More sharing options...
mission vending Posted July 4, 2013 Share Posted July 4, 2013 Okay, so I have applied my tax exempt certificate. Now how is the best way to do this? Do I put money back every time I pull from a machine for my taxes or just how do I make sure I have enough money for my taxes at the end of the quarter. I'm assuming that's how often I will pay them. Your initial frequency will be determined by what you tell them what you project your annual sales will be. After that it will be based on your reports. The m ore revenue you have the more often you will have to file a return. Annual, Quarterly, Monthly, weekly and daily are the categories, I don't not know where the breakpoints are that move you up or down. How you handle it is up to you, my suggestion is that if you are in the annual or quarterly category that you when you prepare your bank deposits that you also figure your sales tax liability on that amount and deposit it into a separate account so that you have it there when it comes time to file. Link to comment Share on other sites More sharing options...
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