Taxing Labor

Discussion in 'Business Operations' started by solaras, Feb 25, 2002.

  1. solaras

    solaras LawnSite Member
    Posts: 55

    When can you tax labor? Or is it not legal.
     
  2. Lanelle

    Lanelle LawnSite Bronze Member
    Posts: 1,361

    Each state has its own set of sales tax laws which vary widely from state to state.
     
  3. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    Are you refering to sales tax? Each state has their own guidelines.
     
  4. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    Yep and those are some goofy guidelines here.
    I have to tax all of my work at 5.5% but tree guys don't have to tax anything. It depends on the type of work you do and who you do it for. Its nice that they change it a little every year or so. Ya need a degree in accounting to follow all the changes.

    Politicians can screw up a good wet _)(** ah forget it. It gets me angry. But I still pay it every month.
     
  5. crayguzman

    crayguzman LawnSite Member
    Posts: 1

    Where could I find information on Taxing labor for Florida State Or any state for that matter???? :blob3:
     
  6. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    You mean your customers pay it, and you send it in?
     
  7. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,597

    In most states that I'm familiar with only fabrication labor for work done fabricating tangible personal property (i.e. your company builds equipment and sells the equipment directly to the consumer) is taxable as part of the sales price. Also, in these states, the contractor is considered the consumer and pays sales tax on the material purchased (i.e. building a house) Construction labor is not ordinarily taxed. But the laws in each state vary.
     
  8. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    Yep. I have the set price of $xx.00 per mow and the invoice shows that for each week or for whatever function that I do (fert, spray, aeration etc.) and at the bottom there is the sales tax box that multiplys the price times the tax rate for the total tax due. Its all added to the grand total which I expect in the mail.
    I take the tax amount and put it in a seperate account and every month I file my sales tax payment with the state. I can do it online in about 5 minutes.

    The one thing that is ok for me is that I do not have to pay tax on my raw materials for resale. That is all of my fertilizer and herbicides and specialty chemicals do not get taxed when I buy them. I do collect on every property that I apply on. The state makes out well on this but I am no worse for wear.
     
  9. PR Fect

    PR Fect LawnSite Bronze Member
    Posts: 1,074

    Ed, learned that one a ways back from my old employer. We would go on a job, trim or remove a few trees, install a retaining wall, put in a lawn, redo the drive. Half the job has sales tax, the rest does not. We would tax it all and send it in. The customer is the one who loses. By the way on this side of the county line its just 5%, go Green Bay Packers!
     
  10. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    Ya PR that extra tax frosts my a$$. I wishe the state of Wisconsin would impose an extra tax so that my small business could buy more equipment and expand. Doesn't seem right especially since the Packers are a money making organization.
    You know that being from Chicago I am not a Packers fan at all so I am looking forward to their season closing today against my second favorite team.

    Go Vikings. ;)
     

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