When Do I Need to Pay Sales Tax?

[NAPHA1978]

Hi! I am newish to Square (September 2023) so 2023 is first year we collected sales tax for purchases from IL (where we are based). Our organization is small and we only netted about $3,000 in sales. What do I do with the portion that was collected for sales tax? I cannot seem to find a straight up answer.

Thanks!

[JK_Fiber_Art]

Hi Napha1978,

Your best option for tax concerns is your State's Department of Revenue.  Each State has their own set of rules and regulations for filing sales taxes.  The volunteer Community Members are knowledgeable with using Square's Apps and Hardware however, when it comes to certain areas of business advice, that's best for the professionals.  You can also get free advice and counseling from your local SBA (Small Business Association) - they have offices in every state.

[DinaLRosenberg]

You need to reach out to the sales tax department,

Contact information can be found here:

https://tax.illinois.gov/aboutidor/locations.html

[Candlestore]

@NAPHA1978 ;

I would talk to your accountant.  When I started my accountant told me my states website for Sales tax reporting.  When I went there and entered my business details I was informed I had to pay the sales tax collected every 3 months.  Which is what my accountant said I would need to do, but after 6 months in business that got changed to me paying sales tax collected every month.  By talking to your accountant they may inform you of your states website to pay your taxes through.  So now when I log in to my states portal for sales tax payment, I am asked a few questions like .... Gross Sales for X month, Taxable Sales for X month and then if I am located in X areas?  Then the site says I owe $X.xx for said time period and how do I want to pay it.  The $X.xx is sometimes at a discount if paid by a certain date which is usually a few dollars less than what Square says I should owe.  I get all the numbers from Squares Dashboard and Summary Reports to fill in for my states Revenue portal.