Sales Tax

[Linda]

I have a question about adding sales tax. Say I am doing a 1600 sq. ft. home, 3 bedroom, 2 bath, and 1 inside dog on a weekly basis. Would $70.00 plus 7% sales tax be a bit high? This would come to $74.90 or should I add it up to be a total of $70.00 with the sales tax included in the price already? Im so confused

Thanks,
Linda

[chevygirl57]

If 7% of $70 is supposed to be the tax, then it should be fine. But, I know nothing about sales tax or how they figure it and I am a total ditz when it comes to numbers, so this is only my best guess. If you have grocery receipts or any receipts really, I would just go back and look at the total before tax and try and figure what % was added in tax and maybe see if the higher the amount, the higher they pay in tax.

-Nicole

[Linda]

Ok I think I worded this wrong. For the county of this home the sales tax is 7% no matter what I charge to clean the home. I have to charge a sales tax for my services. Say someone wants a bi-wkly clean on a 2000 sq.ft. home. The charges would be $100.00 bi-wkly. Would I charge them a straight $100.00 with the tax included so they are not paying anymore then $100.00 for a bi-wkly clean or would I charge them $100.00 plus 7% sales tax which would make the total $107.00 for a bi-wkly clean on a 2000 sq.ft. home. See why I am confused? lol

Thanks,
Linda

[Linda]

I am irritating aren't I lol. Let me just tell you the phone call. A gentleman called about a 1600 sq. ft. home. 3 bedroom, 2 baths, 1 inside dog. He is looking for a wkly clean. Carpet and linoleum. What would you charge?

Thanks,
Linda

[Stephan]

2sisterzjtl said:

Ok I think I worded this wrong. For the county of this home the sales tax is 7% no matter what I charge to clean the home. I have to charge a sales tax for my services. Say someone wants a bi-wkly clean on a 2000 sq.ft. home. The charges would be $100.00 bi-wkly. Would I charge them a straight $100.00 with the tax included so they are not paying anymore then $100.00 for a bi-wkly clean or would I charge them $100.00 plus 7% sales tax which would make the total $107.00 for a bi-wkly clean on a 2000 sq.ft. home. See why I am confused?

I would charge the $100 + 7% = $107. This way your revenue is $100. I you charge $100 tax included your revenue is actually $93.46 ($93.46 + 7% = $100) as you'll have to pay the tax on the service no matter what. If you do it $100 tax in, make sure that you take into account that your revenue is really only $93.46.

Tax is a fact of life, we all pay it and so should your clients.

[logan5127]

If there was no sale tax would you still charge $100? Ask yourself why you would charge $100. Now ask yourself if there where no sale tax would you charge $93.00. Ask yourself why you would or would not. If it is a $100 job then thats what you should make plus taxes. The taxes are all our burdens and we should not have to bear more than our share as should no one. So my advice is let them pay their burden of responsibility, unless you are indeed overcharging by $7.00.

[AmofOhio]

Linda, I add sales tax to the cleaning rate.
If i charge $75 for a cleaning i add 7% on top of that.making it $80.25 I round either up or down. Making it an even $80.
If sales tax is .50 or greater i round up to the nearest dollar.
If its .49 or under i round down.
So if sales tax is 5.25. I round it down to 5.00.
If its 5.75 i round it up to $6.00.

I also let the customer know on their proposal(estimate) that price includes sales tax so they know that 7% of what you charge is sales tax.

[Linda]

Thanks everyone, this helps alot. I have not been adding this as an additional charge. I wasn't sure if that was the thing to do so I thought it would be a good idea to ask I seem to be doing ok with my pricing on the bi-wkly clean, but I am not sure about a wkly price. Do you think $70.00 would be a bit high for a 1600 sq.ft. home plus the sales tax? It is 3 bedroom 2 bath. Wkly clean.

Thanks,
Linda

[AmofOhio]

Sounds fair to me.

Not sure if the State Dept. of taxation sent you a packet on collecting and paying sales tax or not.
I pay semi-annually.Jan-June. then July-Dec.

The packet i get has a place where you keep track of sales and sales tax owed. real easy to understand.
I keep track of my gross sales and my sales tax charged.
that way when its time to pay it in june,and in Dec. i already know what i owe in sales tax.

[Linda]

Great, thanks alot I just cancelled my license, because I was using the wrong one. I had a transient vendors license and I need a service vendors license, which I am waiting on right now. Thanks for your help, much appreciated

Linda

[Stephan]

I just want to say, with a 7% sales tax, you guys are lucky. Ours is 15% in Quebec!!!

[AmofOhio]

Did you mail in your money for a license already?

You can pay and get a new license online at www.ohiobusinessgateway.ohio.gov

It allows you to enter all info. and then you pay by E-check, and then you print out your new license.Takes about 10 minutes.

I just had to do this Tuesday. I have a service vendors license,but it was still under me and my Ex-partner's name.
When she quit i changed my registration with the secretary of state but forgot to change with the Dept. of Taxation. OOPS!

No biggy if you already sent for one, but if not, you can do it online in a couple minutes and have your license within minutes.

[Linda]

I havent been able to get on the website. For some reason it isnt accepting my password. New email address, wont let me update so had to call once again. They wanted me to fax my info so they could do the update. My all in one is not working at all now, piece of crap. Finally talked the lady into sending the info for me so I could get in. They do not like to do that, which I guess is good, but she finally did. Will do online tonight

Linda

[snydertech]

Linda,
Have you submit your bid for the 1600 sq. feet? If it were me, I would charge $60 for a weekly clean or $75 for biweekly. I currently have a house identical to this (with the dog and all) that I charge $40 for... but it is at cost, just to get my name out there.

That is my 2 cents.

David

[tcmb04]

Should we be adding sales tax to our bids in Missouri too then? I didn't know this