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For Pennsylvanians - a question

Discussion in 'Business Operations' started by 1MajorTom, Nov 15, 2002.

  1. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    I will be the first to admit I'm not up on tax issues.
    I take all of our paperwork to our CPA to handle. But the one thing I do is send in the sales tax.

    For four years I have been sending in our PA Sales tax on a quarterly basis.
    Today I receive a notice in the mail stating effective Janaury 1, 2003, I must file my PA sales tax on a MONTHLY basis instead of my previous reporting cycle.
    It goes on to say that Licensees whose tax liability is $600.00 or more per quareter must file monthly.

    Now I have always sent in more than $600.00 per quarter since we started this business. Have I been doing it wrong this whole time, and they finally just caught on to my error, or is this a change for everyone in PA sending in sales tax?
    I am not happy about having to send in monthy payments now.

    When I applied to get my sales tax coupon booklet, they never asked anything about our income. They just sent out the quarterly payment book, and that's what I always used.

    How does everyone else handle their PA sales tax?

  2. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    Jodi, it is a standard on most variable taxes that the higher your liability, the more frequently you pay. On employee payroll taxes, a very small business can pay quarterly, while a very large business pays weekly. Our state sales taxes have a schedule of whether you pay monthly up to annually,depending on the amounts due.

    Sounds like you were overlooked as far as getting you on the monthly plan. Don't be bummed, be happy you were in a loophole for so long. :D
  3. tailoredlook

    tailoredlook LawnSite Member
    Posts: 142

    When i get my payment book each year it only contains quarterly coupons but then again my taxes are always under $600.per quarter.
  4. bilbo7021

    bilbo7021 LawnSite Member
    Posts: 99

    Right now I'm too small to worry about this. Thank God.

    But, friends of mine who own a restaraunt just went onto monthly reporting due to they hit the $600 limit within the last month or so. I'd say you just simply got missed until some audit or something took place.
  5. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    Jodi...I have the rules in front of me as I type them right now for you....61PA Code 34.3...
    Section3.i. skipping down ....QUARTERLY LICENSEES "new licensees shall file returns on a quarterly basis. Licensees whose total tax reported is less than $600 in the 3rd qtr, but more than $75 annually shall continue to file qtrly"...skipping to next section...
    MONTHLY LICENSEES..- "A tax return shall be filed monthly with respect to each month by a licensee whose total tax reported for the 3rd calendar qtr of the PRECEEDING year equals or is greater than $600".

    I hate accounting so dont ask me to interpret this....but it SOUNDS like in the 3rd qtr 2001 you paid more than $600 and theyfinally caught up with you...no big deal Jodi....just send them a check when you do your monthly paperwork....the rule is not new ....you have just been missing it...dont you just love our COMMON - WEALTH?????? Rendell will take care of our "wealth"...Jodi.....its going to go to the rug rats and curtain climbers in Phila!!!!!!!...Regards...
  6. Evan528

    Evan528 LawnSite Silver Member
    Posts: 2,144

    Jodi, I also have always sent in my sales tax quarterly and it is well over $600.00 a quarter. I have never been told to do other wise from my accountant or the state. I will have to look into this.
  7. cos

    cos LawnSite Addict
    Posts: 1,253

    I never heard of this. My girlfriend is the one to do all the taxes. The CPA is the one to iron out all issues at the beginning of the year.

    Food for thought.
  8. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    well guys take it or leave it....I am staring at the form....what I said is what it says
  9. wrtenterprises

    wrtenterprises LawnSite Senior Member
    Posts: 312

    I have been doing monthly returns for a couple of years now. I'm not happy with it, but the State of Pa. requires it if you " make some reasonable cash ". I took the liberty to use my own words here.

    Before that, I also was on the quarterly bus. It creates much more paper work, but it's the law. What really sucks is that you do not get anything substancial in return for your extra work!!! A small discount if you are eligible.

    For those of you now on the quarterly bus, get ready to increase your Pa. Sales Tax hours. They will find YOU......
  10. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    Thanks guys for all the responses.
    Kitzy, thanks for going to all that trouble and looking that up for me. :)

    Evan, I was wondering about you. I know there are a bunch of guys from PA, but I'm wasn't sure if maybe they were part time and if they would hit the $600.00 mark. But I kinda thought you would.

    What gets me is, they don't ask in the beginning about income. They just send out the booklet. The only thing I can think of is that they wait a few years to make sure the business is established and sending in considerable amounts of payments, before they switch you over to monthly. (because we've been way over the mark, not just the third quarter of last year)

    wrtenterprise: I do have one question. Our first quarter was always our lowest since we don't work in Jan. and Feb.
    Since we won't have any incoming money, will I still have to send in a coupon from the booklet for the months of January and February? (This might be explained in the booklet when I receive it. Just wondering in advance)

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