WAHM Forums

Hi,http://www.wahm.com/forum/smileys/smiley1.gif

I personallydon't like to mess with that state sales tax stuff!
Checking out a few differentcompanies lately I found out that most of them collects it and submit it to the proper state for you now. But, then there's some that stilldon't!

That's just like credit cards! I found out thatsome companiesprocess the customers credit cards and some don't. Plus, some will process the cards for a fee!

Then, there's a few that will do one but not the other!

Anyhow, just curious I was wondering what companies collects the State Sales Tax and process customer's credit cards for you?

Thanks!!

Lia Sophia jewelry does both !! And they do not charge us for processing credit cards either. Love it!!

Story Time Felts does the tax for us and the CCs and no charge to us! I'd probably have a problem with a company that didn't do that, it's SO easy this way.

Initial Outfitters does both with no fee for CC.

My other two companies do not--I pay my own sales taxes and use propay for cc charges (which is optional--you don't have to accept credit cards). I've done it for so long, it's no big deal to me. BTW, these two companies are wholesale type companies where I carry inventory, so that's probably one of the differences.

Angie

Sarah Coventry Jewelry does both and we are not charged for it - Love It Too!

Sandy, you've hit on my favorite topic in direct sales. I can't remember which state you're from...it's not TX is it?

Texas REQUIRES that the direct sales company remits the sales tax to the state for consultants. I think that's why so many of the smaller companies are coming up with AFFILIATES, rather than direct sales. They have less responsibilities as far as sales tax goes. If a company has a direct sales program set up, they should be remitting the sales tax for you, and you should be paying sales tax to the company. I have done extensive research on this topic with TX for over 2 years...they're probably tired of hearing from me! I've even had my state's tax reps ask what company I was asking about so they could call them and give them the right info! http://forum.wahm.com/forum/smileys/smiley3.gif

As far as credit cards, I don't know if there are any rules for that set in stone anywhere. It seems to me that it's up to the company, who is paying for the credit card merchant ID and fees.

With Sensaria Natural Body Care they collect and pay the taxes for you. They also take all the major credit cards with no fees to the rep.I always love it when a customer says "You even take Discover?!" and I get to say yes.http://www.wahm.com/forum/smileys/smiley20.gif
Amanda

Anyhow, just curious I was wondering what companies collects the State Sales Tax and process customer's credit cards for you?



GemStyle does both for us and no fees! LOVE it like others said! http://www.wahm.com/forum/smileys/smiley4.gifYears ago when I had my own children's store I had to do both myself - UGH! Of course, I'm MATH CHALLENGED! LOL http://www.wahm.com/forum/smileys/smiley2.gif

This is a great question!
I'm looking at a new business, jewelry and one of the companies that I really liked makes the consultant pay pay the sales tax to the state and pay a CC fee. Hmmm

I do have a question for those of you who have to pay your own sales tax, has it hurt your recruiting efforts?Edited by: PlaytimeBiz

BabyCrazy takes care of all of the sales tax and processing fees for us too.
We (as reps) don't have to worry about any of that stuff (thank goodness!)

Hi Missy!http://www.wahm.com/forum/smileys/smiley1.gif

I'm from PA! I was hoping you would pop in! Iremembered that this was a topic you were interested in!

PA isn't like Texas, though! If the company don't collect it you have to!

There's one thinkI found out though, at least for PA!You know how alot of times when a company don't collect the sales tax their say for online orders you don't have to worry about it if it's out of state? Well, if I understood right for Pa, if the company don't collect it, legallyanyone that places anonline order suppose to submit the sales taxes themselves!I don't think most people (PA) even knows that! That or they don'tcare!http://www.wahm.com/forum/smileys/smiley36.gif

Hi Deb,http://www.wahm.com/forum/smileys/smiley1.gif

Can I ask you what jewelry company your talking about? I thought most of the jewelry companies took care of it!

I think these questions are ones thatsome people never think to ask a company. For me, their on my top five!http://www.wahm.com/forum/smileys/smiley36.gif

Thanksto everyone that posted so farabout their company!!

Usborne is another company that processes CC's and tax for us http://www.wahm.com/forum/smileys/smiley1.gif

The jewelry company that I had inquired about is Morgan Dane. They don't pay the sales tax.

I think it is more companies where you have a inventory that you collect the sales tax and send it in http://www.wahm.com/forum/smileys/smiley1.gif

Sandy, TX is actually the same way about online orders and if the company doesn't pay, you should. It's called USE tax, rather than sales tax. Can you imagine how hard that would be totry toenforce??

I think you're right that there are a bunch of people who don't check with their state revenue departments about sales tax laws. I see all over the place, "check with your accountant"...well, I'd rather hear it from the horse's mouth!

Love to see people's answers on this topic...I know, I'm twisted...I used to like accounting, too!

I do have a question for those of you who have to pay your own sales tax, has it hurt your recruiting efforts?

I've never been told by anyone that that is the reason they didn't choose that particular company. It really isn't that much trouble and it forces me to be organized (yes, I need to be forced). The sales tax is easy--apply for a state biz license and they will send youa payment book to be filled out quarterly. The cc with propay is also easy--there is a charge for the year as well as a percentage per transaction, but worth it for large orders or birthday parties with NAW. All I know is that it would have never have kept me from joining NAW or UB, because the advantages far outweigh the sales tax/cc work.

Angie

Oh, OK Deb! Yes, I found outMorgan Danedon't collect it too! I checked on Morgan Dane last year and was told they did, but if I understood right they changed their mind and decided not todo it now. Their program changed alittle since I checked into it last year,too (For the better!) Plus, they didn't haveonline ordering then! They do have some nice looking jewelry!
Is Morgan Dane the one you were talking about that charges a fee for CC's?
Not thatI would want to, but I wouldn't mind having to pay a fee toa companyas long as it's not to much!

This is a great question!
I'm looking at a new business, jewelry and one of the companies that I really liked makes the consultant pay pay the sales tax to the state and pay a CC fee. Hmmm

I do have a question for those of you who have to pay your own sales tax, has it hurt your recruiting efforts?

My company does pay it but I have talked to alot of people about different companies and such and I've never heard anyone say that for a reason about NOT signing with one company over another...I think if they overall LOVE the company and the product it's not a HUGE problem. When I had my store I was mailed a payment book and we paid monthly but my computer program could tally up how much we owed based on sales and such....it's not my favorite task but it's not difficult or so outrageous you'd turn off a prospective recruit - in MY opinion...you do have to be organized though! http://www.wahm.com/forum/smileys/smiley2.gif

Scentsy takes care of both.

This is a great question!
I'm looking at a new business, jewelry and one of the companies that I really liked makes the consultant pay pay the sales tax to the state and pay a CC fee. Hmmm

I do have a question for those of you who have to pay your own sales tax, has it hurt your recruiting efforts?

It has actually stopped me from joining companies before - it's one of the first questions I ask. I know, it's easy, and when I run my own store I'll have to do it myself, but until then, if a company is supposed to do it for me, that's how I want it done. In my opinion, if a company doesn't remit taxes for the states that require it (and I'm sure Texas is not the only one),they haven't done their research. It's all part of doing business in multiple states.

Jewels by Park Lane does both & no charge to Consultant as long as you havea website ($50 / year fee)

Marianne

Missy,
Is there a loophole for wholesale type companies since that seems to be the case with inventory type direct sales? Just wondering. Just a sidenote, when I bought from Lady Emily for the discount, they charged double--to pay their tax on wholesale and to pay our tax for us--it was weird.

Angie

Mia Bella will do it either way. If you get your resale/use license you can do it yourself, or if not they will charge you tax based on the suggested retail price.

However, if you are going to do fundraisers it would be best to have one to avoid paying taxes on products that possibly went to a non-profit organization.


~~Angie

Edited by: EnivaAngie

M Studio does both for us, and we have no annual renewal fees or processing fees of any kind, no matter whatour quarterly or annual sales numbers are.

Angie, give me an example of an "inventory-type" company, please. Like Mia Bella, in their wholesale aspect? Or like a jewelry company where have a great deal of in-stock items? I've posted the exact wording as it was explained to me the first time I asked about the rules (and highlighted the key points). It seems to me that if a company does business in any way in TX with reps, they (TX) want their sales tax for it! (Sorry for the long post, this was the easiest way I could think of to show you their answer!)


Direct sales organizations must use the following methods for accounting for local taxes that are due:<?:NAMESPACE PREFIX = O /><O:P></O:P>
<O:P></O:P>
If the distributor takes orders before purchasing from the direct sales organization, the order blank should indicate the amount of tax due and to which local taxing jurisdictions it should be allocated. The direct sales organization should collect and remit the appropriate taxes from copies of the orders. <O:P></O:P>
<O:P></O:P>
If the distributor purchases the items before the customer's order is taken, the direct sales organization should collect and remit the amount of tax based on the suggested retail sales price and the tax rate in effect for the distributor's location.
<O:P></O:P>
All sales of items to a distributor for personal or business use should have tax computed on the direct sales organization's actual price to the distributor and at the rate of tax for the distributor's location. Examples of these items include products for the distributors own use, sales aids, and prizes given away to customers.<O:P></O:P>
<O:P></O:P>
It appears that the company you may join markets its products utilizing independent distributors to make direct sales (e.g., door-to-door sales, home parties, etc.) in Texas. If so, it is a direct sales organization and must comply with the responsibilities of direct sales organizations as explained in Rule 3.286(a)(1)(D), (a)(3), (b)(3), and (d)(6). We will be happy to send them a letter regarding the responsibilities of direct sales organizations if you will provide the name of the company and its mailing address.<O:P></O:P>
<O:P></O:P>
Please be aware that even if the out-of-state company is not a direct sales organization (i.e., it does not utilize independent distributors in Texas to make direct sales of its products), it is still engaged in business in Texas per Rule 3.286(a)(1) since it would have commissioned sales agents in Texas soliciting sales. The company would have a responsibility to obtain a Texas sales and use tax permit and collect sales or use tax on taxable items sold in Texas (including shipments of taxable items into Texas to purchasers). We will be happy to review any written agreements between the company and its commissioned sales agents so we have all the facts.

Southern Living at HOME takes care of it both for us.

We take ALL credit cards and SLAH takes care of all the taxes too!

Susan
Celebrating my BIGGEST personal and team month ever with SLAH!

Both Urban Botanic and Noah's Ark are wholesale type direct sales in that I order product first and deliver to the party. I buy the product at a discount or wholesale price, unlike say...Pampered Chef where they take the order and remit payment and deliver later.

So, as it reads it sounds as if it covers both types. Perhaps I should mention this to both companies. Not that I have ever cared, but I want to know they are informed.

Angie

Latasia takes care of all of it for us with no charge for CC's and we take all 4 of the major CC's!! And, once again, like everyone else, I'm SOOOO GLAD they do it for us!!!