Sales tax collection is proving to be complex. A Supreme Court ruling allowed for state-by-state legislation that imposes businesses to pay the applicable sales tax on eCommerce transactions within the state, regardless of the business's physical presence in the state. In essence, if your company in St. Louis sells to a customer in San Diego, you have to pay the San Diego sales tax. As such, you have countless tax rates to keep track of. With state, county, and city tax laws subject to unexpected change, you are distraught.
Filing and Payment Extension Period for Small Businesses
The California Department of Tax and Fee Administration (CDTFA) provides an automatic three-month filing and payment extension for individuals and companies reporting less than $1 million in taxes and fees on their sales tax returns.
Tax Relief Strategies - Relief From Penalties
Relief may also be available for taxpayers with tax liability exceeding $1 million. However, it will be granted on a case-by-case basis only upon request for relief. Get relief from penalties with a one-month extension, 30-day extension, and another one-time extension for business entities, larger businesses with the span that can extend to even 12 months! The extensions with payments are also welcome by many taxpayers.
Approximately 99.5% of businesses typically file returns for less than $1 million in tax in California. Many of these businesses have been eligible for tax filing and payment extensions since the start of the pandemic.
Is Sales Tax Filing Affected By the COVID-19 Crisis? Know About the Extensions With Payments
Sales tax filers were relieved of immediate sales tax payment relaxed due to Covid-19 pandemic - national emergency. The national emergency called for an extension that has eased the sales tax filers considerably. No late payment penalties or other procedures related to sales tax payments owing to the COVID-19 outbreak! The business taxpayers welcomed the time-period shift for sales tax payments which could benefit from the extended payment deadlines granted for extension requests! A true escape from a late tax return.
Assistance to Tax Payers in 2021 - Curbing Late Tax Return Issues
Whether you are filing taxes online or otherwise, additional time granted through the extension period can relieve penalties. You can file your income tax returns, sales tax returns, and business tax returns and pay your taxes at the extension payment period.
Annual Filers Tax Payment Extension for Business Taxpayers
In 2021, annual filers benefited from tax payment extensions - this extended the deadline to July 2021 from the sales tax filing deadline of January or April 2021. The automatic 6-month extension was a relief to the late filers. There are also extensions available for excise tax returns, franchise tax returns, along with the Covid-19 sales tax relief. It is a true boon to the largest taxpayers.
Automated Tax Extensions At Your Rescue
Manual sales tax filing can be stressful, but automated sales tax extensions make tax filing and payment a breeze! Owners can avail tax forms online, and even annual sales tax can get computed automatically. Fix your annual sales tax liability quickly. Here is how.
Managing sales tax state-by-state on your WooCommerce site can be vexing, but useful automated extensions can ease your dilemma. With the tax extensions, you can avail accurate sales tax calculations and tax filing, prepare sales tax returns. No late payment issues anymore due to complex manual sales tax returns or income tax returns filing procedures!
For tax, auto-filing options such as TaxJar are the best option. You can configure settings in WooCommerce to automatically calculate sales tax based on the requirements of the new rules laid by the Supreme court.
The automated tax filing options that integrate with WooCommerce are the best assistance to taxpayers. To manage your taxes, WooCommerce's automatic free extension will calculate the correct tax rate based on your customer's location. However, if you are selling from more than one location or looking for any further tax assistance, you can opt for a WooCommerce tax extension. TaxJar is an ideal sales tax extension that will calculate the applicable sales tax based on rates that they update monthly, filling out tax rate CSVs. Then, each day, they compile everything you owe by state, county, and city. TaxJar will even file your sales tax returns for an additional fee so you can forget all the different due dates. A true benefit for the largest taxpayers group.
The recent U.S. Supreme Court verdict on South Dakota vs. Wayfair overturns the long-lasting Quill decision, resulting in a dramatic change in sales tax payment of online sellers. Almost 90% of online businesses have less than 20 employees. As per this statistic, in small eCommerce companies, either owner or manager does all the business processing like marketing, accounting, shipping, customer service, monthly sales tax computing, and many other tasks.
However, managing government regulations related to your online business can become terrifying. It is because of the difference in tax rates. For example, a product may be taxable in one state but will be non-taxable in another. A product may not be payable at the state level but may be taxable at the local level. These differences and variations can be confusing and dreadful. If not an expert in accounting and taxation, errors will occur. Mistakes will not only cost money but will invite legal troubles too.
To get rid of this trouble, you can use automated tax software. Plan automatic extension soon with the option of using online services!
Let us go into it! The extension payment for taxes is ideal.
1. TaxJar - Top Extension Payment Option
For hassle-free sales tax calculations, reporting and filing, you can choose TaxJar. This extension will provide you with accurate sales tax calculations and return-ready reports. TaxJar manages more than 10,000 tax rates, updates monthly. Automatic updating of tax settings helps store owners to prepare and file tax returns in a few minutes. With an additional fee, you can choose Automatic filing. If you enable this feature, TaxJar will handle your sales tax filings automatically, and without any worry, you can automatically submit your tax returns to the state. If you enroll in it once, then you will never miss your tax filing due date again.
The features of TaxJar are plenty, and other Notable Features includes:
· Simple installation. Once installed, in minutes, you can start collecting the tax.
· This extension is customizable with eCommerce platforms like Volusion.
· In-built sales tax categories of TaxJar free non-taxable items, making your tax collection more accessible.
You can obtain sales tax data all in a go.
· No contracts and activation fees.
· A 30 day trial for free, without a credit card.
Once the trial period is over, you can make the payment as per the number of transactions you carried. This payment also provides you the API calling feature with a monthly charge of $19 per month. You only make API calls in those states where you have to calculate sales tax!
With TaxJar's assistance, file your returns on time. Settle your tax on time - No more complexities of late filing due to complexity in tax filing.
2. TaxCloud - Ideal Extension Payment Option
TaxCloud is a certified service provider for many sales revenue departments and is free for retailers. The benefits of TaxCloud are plenty. This extension automatically tracks tax from different states, identifies sales tax holidays, and can easily integrate with shopping carts and ordering mediums. These features help retailers to calculate, collect and remit sales tax instantly.
Even small-scale businesses can manage sales-tax-free of cost with Tax cloud. A team of experienced tax experts powers this cloud-based tax management extension. This platform helps users track sales tax rates automatically and provides product-type and use-based tax exemptions of every state. With TaxCloud, retailers can quickly calculate and collect sales taxes, complying with sales tax laws.
The features of TaxCloud extension payment include the following.
· Free Automated Compliance Service
· Core Public Sales Tax APIs
· Advanced APIs
· Instant Implementation
· Instant Implementation
· Track Sales Taxes of Every State
· Track Product-Type and Use-Based Exemptions in Every State
· Sales Tax Collection and Filing
· Reporting Features
· Easy Integration with an eCommerce platform, order management, Shopping Cart, and ERP systems
· Online Store and Hosted Marketplace Integrations
· Integration with Payment Processing Services
· Optional Manual Sales Tax Management
TaxCloud provides a free Automated tax Compliance service for all online users. On the other hand, the company charges a minimum service fee of $10 per month for standard compliance. With TaxCloud assistance, file your returns on time!
Settle your tax on time - No more complexities of late filing due to complexity in tax filing.
3. Avalara - Best Extension Payment Alternative for Monthly Filers
Avalara, founded in 2004, is a cloud-based sales tax and compliance system. With this extension, companies can relieve the headache of multi-state sales tax calculation.
For companies and users expanding into new states, Avalara makes the major headache of multi-state sales tax relatively stress-free.
The features and benefits of Avalara include accurate calculations, electronic filing and returns, and exemption from certificate management. Since Avalara is a cloud-based solution, regular updating is not required. Another vital feature of Avalara is its simple click. Avalara calculates sales taxes and handles all calculations, and creates reports of sales tax filings monthly. The implementation of Avalara is straightforward. The right option for monthly filers.
The features of Avalara include the following.
· Sales tax compliance automation
· Tax determination
· Exemption certificate management
· Tax filings, returns as well as remittance
· Tax rates for over 70,000 localities worldwide
· Automatically updates product taxability
· More than 10 million UPCs mapped to sales tax content
· Pre-built integrations for most ERP, POS & eCommerce systems
· Detailed reporting
· Support to over 100 countries worldwide
· 10 million UPCs allocated to sales tax content
· VAT compliance
Avalara offers a subscription model. The price starts from $50.00/year. The rate is affordable and reasonable. The amount is calculated on a transaction basis to pay what you need based on monthly sales and identifying taxable sales. Choose the online services!
4. Taxify - Preferred Extension Payment Alternative
Taxify is a Government certified Sales Tax Service Provider which automatically calculates sales tax. Whenever an order gets placed, and the checkout happens, Taxify automatically files the charges per the state's tax regulation. Taxify comprises a team of 40 tax attorneys; Taxify provides rates and rules that help you to make wise and quick decisions on new products and markets.
Features of taxify comprise the following.
· Highly automated and requires no specialized knowledge to use it.
· Recalculation of Sales tax is possible anytime on any order.
· Sales tax gets automatically filed with Taxify for electronic processing in every state.
· Calculate Sales tax for orders from 13 months earlier to the plugin's installation.
· Automatically files Partial and fully refunded orders.
· Tax-exempt customers can pay zero sales tax through the tax-exempt checkbox which is available on the checkout page.
· Individual items can be categorized as taxable, and nontaxable.
There are no hidden charges, and the pricing is simple. You can start with the free trial and then, based on the monthly transactions, can opt from Starter, Standard, and Premium plans which will cost you between $47 and $247 per month.
5. Vertex - The Best Extension Payment Solution
Vertex is the proven tax technology that simplifies the complexity of tax filing. With Vertex, you don't have to worry about manual calculations. It calculates sales tax on every sale and purchase on every item locality-wise. Follow the payment plans for annual return filing!
Vertex is the only tax technology provider that has consistently maintained an unwavering commitment to corporate tax professionals for over 40 years. It is simple and can easily integrate with financial systems, ERP, and eCommerce stores, thus taking care of your tax filing on every single transaction. This extension has multiple deployment options so that you can pick the technology as per your requirement.
The pricing of this extension is three-tiered and is flexible, suiting the various needs of the company. You have to subscribe to Vertex to know more about pricing details.
The new rule was a worry for every retailer. With an insight into the sales tax service providers, half the problem is solved! But how to integrate these plugins? Getting stressed? Don't be!! Virtina can do that job for you.
So, if you are vexed with tax filing, you have a handful of solutions at hand. Good luck!
Need to automate tax calculation of your eCommerce store? Our experts can help you!
Frequently Asked Questions (FAQs)
1. What is TaxJar Sales and Transactions Checker?
The TaxJar Sales and Transactions Checker is a service that will help you manage WooCommerce sales and provide you a list of states where you have exceeded their economic nexus laws.
2. When to choose TaxJar's standalone plugin?
One instance would be when your business has a significant presence in more than one state. You may want to track how much your business sold, sales tax collected, and count the transactions completed across multiple states. Now, you needn't spend numerous hours or more filing sales tax returns. TaxJar will keep up with the new economic nexus laws and immediately update their customers about the latest sales tax laws.
3. How can business owners file taxes for an online business?
When merchandise sales are through a marketplace, the marketplace operator may be a consignee making consignment sales and responsible for paying sales tax or collecting and paying use tax as the retailer.
A sale occurs in the state where the merchandise is physically located when the sale takes place. California's sales tax gets imposed on retailers and generally applies to their gross receipts from retail sales of inventory in the state.
4. Can I know the steps to manage tax filing?
Step1: Remember your tax deadlines.
Step 2: Keep all receipts in order.
Step 3: Maintain your bookkeeping updated.
Step 4: Submit form 1099.
Step5: If tax extension is essential, go for it.
Step6: Know your tax deductions The process may seem a few steps but is complex. You can easily opt for Sales tax extensions, and the process will be the simplest ever!
5. How do WooCommerce extensions help in tax exemption?
You can manage tax exemptions at the product or customer level using the extensions. It will be possible to provide tax exemptions for customers and products. A customizable form will be displayed in your store, and customers can request tax exemption. The checkout page will have options to claim for tax-exempt.
6. Know the Common Five sales tax questions for online sellers in the US and the single solution?
Are you an online seller within the US? You may be puzzled about calculating your sales tax. Your interests would be about tax-exempt, tax-exempt entities, selling to tax-exempt customers, remitting sales tax.
Your related queries would be the following.
What address(es) will your products be shipping to and fro?
Do you sell any tax-exempt or non-taxable items?
Do you sell to any tax-exempt customers, such as tax-exempt entities or resellers?
7. How will you remit (file and pay) the sales tax you collect?
There is a single solution to all these questions, switch over to automated tax filing and end your vexation. You can opt for online tax filing facilitated with extensions, and you wouldn't wish for better convenience.