FREE SALES TAX SOLUTION for Online Sellers | Streamlined Sales Tax

TL;DR

Streamlined sales tax (SST) is a free program that simplifies sales tax compliance by providing one portal for registration, filing, and calculations. However, not all states are part of the program.

Transcript

Hello, this is Kexin from LedgerGurus. Today. I want to tell you about an option that is a hundred percent free that will take care of your sales tax integration, filings, and registration and calculation. And the solution is called streamline sales tax. But before I dive in, if you haven't, please subscribe to our channel and hit the bell signs. S... Read More

Key Insights

• 🚕 Streamlined Sales Tax (SST) simplifies sales tax compliance by providing one portal for registration and filing, consistent definitions, and unified administration rules.
• ❓ Most remote sellers, even those with limited physical presence or payroll, can qualify for SST registration and filing.
• 🥶 Using a Certified Service Provider (CSP) allows business owners to access SST for free, with CSPs being compensated by the states based on a percentage of sales tax remittance.
• 😃 The biggest advantage of SST is that it is free for business owners and provides an audit defense shield by shifting responsibility to the certified service providers.
• 🤑 However, SST does not cover all types of taxes, assigns a monthly filing frequency, and not all states, particularly larger ones like California and New York, are part of the program.
• 😀 Businesses with operations in both SST and non-SST states may face administrative challenges in consolidating filings and reconciling tax numbers.
• 🚕 The option to choose which states to register with within SST provides a hybrid solution for sales tax filing.

Questions & Answers

Q: What is Streamlined Sales Tax (SST) and how does it simplify sales tax compliance?

SST is a program that aims to simplify sales tax compliance by providing one portal for registration and filing, consistent definitions of products and services, and unified administration rules. This allows businesses to easily understand and comply with sales tax regulations across multiple states.

Q: Which businesses can qualify for SST registration and filing?

Most remote sellers can qualify for SST registration and filing. Even businesses with a small amount of payroll, property, or physical presence (less than 30 days in a calendar year) can be eligible. The program has thresholds of $50,000 for payroll and $50,000 for property.

Q: How can business owners access SST for free?

Business owners can access SST for free by using Certified Service Providers (CSPs), which are sales tax software companies. These CSPs have been audited by the states and offer free sales tax services to qualifying businesses. CSPs like Avalara, Sovos, Taxify, Tax Cloud, and Accurate Tax are some examples.

Q: What are the pros and cons of using SST for sales tax compliance?

The pros of using SST include it being free for business owners and providing a shield of audit defense as the responsibility lies with the certified service providers. However, it doesn't cover all types of taxes, assigns a monthly filing frequency, and not all states, especially larger ones like California, New York, and Illinois, are part of the program.

Summary & Key Takeaways

• Streamlined Sales Tax (SST) is a program formed by 23 member states and one optional member state (Tennessee) to simplify sales tax compliance.

• The program offers one portal for registration and filing, consistent definitions of products and services, and unified administration rules.

• Most remote sellers, even those with limited physical presence or payroll, can qualify for SST registration and filing.