Sales Tax For Business Women
Written by MommyMindi
Why you should handle your own sales tax instead of letting Mary Kay do it for you…
The sheer stupidity of some Kaybots never ceases to amaze me. Getting a large tax refund is never a good thing. All it means is that you just gave Uncle Sam a tax-free loan for the year.
Although this is not as “big” as getting an “extra” $2K on a tax return, it always used to amuse me when Directors instructed Independent Beauty Consultants (IBCs) to simply write off unrecovered sales tax on their Schedule C, rather than use the Sales Tax Refund Request through InTouch. Writing off the sales tax doesnâ’t give you back the money that you paid MK and didn’t recover… it just gave you back the taxes that you would have paid on that money.
FYI – to any still-active Independent Beauty Consultants: GET YOUR OWN TAX ID #.
For example, in Pennsylvania, it takes about 10 minutes to get the number online. To find the place to register in other states, Google: state sales tax + your state. Assuming you keep adequate records for each sale, it takes less than 3 minutes to remit your taxes quarterly.
You would still have to pay sales tax when you order from MK, but then you turn around and use the Sales Tax Refund Form, provide a copy of your Sales & Use Tax certificate (issued through the state). Then, none of your money is tied up in pre-paid sales tax and you only remit the actual sales tax collected to the state.
PLEASE NOTE: I DO NOT advocate anyone getting their own tax ID # and then “cheating” their state out of tax money by under-declaring their sales. That is illegal and could land you in jail.
I am simply encouraging still-active Consultants to conduct their business as an actual business. Letting Mary Kay Inc. “handle” your sales tax for you is not acting like a businessperson, in my opinion!
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