There are many perks to owning an e-commerce business. For starters, e-commerce offers the freedom to expand a customer base in different states and cities. However, with this freedom comes certain responsibilities, for example, dealing with State and Local Taxes or “SALT.” When it comes to State and Local Taxes, working with a SALT accountant is a good idea. This is what a SALT accountant can do for your e-commerce business.
What Is SALT Accounting?
You may be wondering, what is a SALT accountant? A SALT accountant is a tax expert who specializes in State and Local Taxes. State and Local Taxes can vary from state to state, and even from city to city. A SALT
accountant is familiar with the variances in the tax laws between the different jurisdictions. Which can help keep e-commerce businesses out of trouble when filing their taxes.
Why You Need To Know a State & Local Taxation Accountant?
For e-commerce businesses that have nexus in multiple states and jurisdictions, a SALT accountant is invaluable. Since the tax laws can vary so much, it can be really confusing to navigate State and Local Taxes alone. SALT accountants know the proper procedures, specific tax laws, and know the required forms for each jurisdiction. Not filling an accurate tax return can land many e-commerce businesses in hot water with the IRS. Which is completely avoidable by working with a SALT accountant.
What Services Do SALT Accountants Perform?
A SALT accountant can help with several areas when it comes to filing taxes for your e-commerce business:
Income Tax – Most states require income tax to be reported and paid on a quarterly basis. Each state has it’s own guidelines and percentages, which a SALT accountant will be familiar with.
Sales Tax – Most states require a sales tax to be paid on goods and products sold. The tax rate and filing requirements can vary from state to state and even city to city. SALT accountants ensure businesses adhere to state specific regulations.
State Unemployment Tax – Each state has its own Department of Revenue and Department of Labor, which sets forth the specific guidelines for rate and contribution times for state unemployment. SALT accountants know the regulations for each state and locality as well as which portions of payroll are subject to calculation.
Licensing and Fees – Most states require a business license to be filed with the states Department of Revenue. SALT accountants can make the filing process for a business license easier because they know the specific requirements and can file the license for you. Operating a business without a business license can result in fees and penalties from the state.
Hiring a SALT accountant can make running your e-commerce business easier because it takes a lot of the guesswork out of filing taxes. This way you can focus on what matters most, running your business. To learn more about SALT accounting contact Tax Hack today!