what percedure would not require the separate record for collecting and accounting for sales taxes, yet comply with a state's requirement to collect and submit sales taxes based on sale of merchandise sold?
To comply with a state's requirement to collect and submit sales taxes based on the sale of merchandise sold without the need for a separate record, you can follow the procedure of using a point-of-sale (POS) system with built-in tax calculation and reporting features. Here's how you can implement this procedure:
1. Research POS systems: Look for a POS system that has the capability to automatically calculate sales tax based on the applicable tax rates for your state. Ensure that the system can generate accurate reports for tax collection and submission.
2. Configure tax rates: Configure the POS system with the appropriate tax rates for your state and any local tax jurisdictions if applicable. Most modern POS systems allow you to set up different tax rates based on the location of the customer or the business.
3. Set up product categories: Categorize your merchandise into different product categories within the POS system. This step will help you assign the correct tax rates to each product based on your state's requirements.
4. Enable automatic tax calculation: Activate the feature within the POS system that automatically calculates and adds the appropriate sales tax to each transaction. This ensures that the correct tax amount is included in the sale, eliminating the need for a separate record.
5. Generate tax reports: Regularly run reports from the POS system that summarizes your sales and tax collection data. Most systems have built-in reporting features that can generate detailed reports, including the total sales, tax collected, and the applicable tax rates.
6. Submit tax payments: Analyze the generated reports and use the provided information to calculate the total amount of sales tax collected. Submit the tax payments to your state authorities within the required timelines.
By utilizing a POS system with built-in tax calculation and reporting features, you can streamline the process of collecting and accounting for sales taxes, while ensuring compliance with your state's requirements.