FAQ: Understanding Sales Tax
Sales tax laws can be complex, and the requirements for collecting and paying it vary from one state to another. At Beyond, we believe in transparency and compliance with all applicable regulations. This guide answers common questions about when sales tax applies to our services, how rates are determined, and what to do if your business qualifies for an exemption. Whether you are a small business owner or an accounting partner, the following information will help you better understand how sales tax is handled within Beyond.
Sales Tax FAQs
Does Beyond charge sales tax?
Sales tax obligations vary by state, and not every state requires software providers like Beyond to collect it. If your account’s legal address is located in a state, county, or municipality where our services are taxable, your invoice will be updated to reflect the applicable tax. Beyond fully complies with all relevant sales tax regulations.
What is the sales tax rate?
Rates are determined by state and local authorities, along with rules on which goods and services are taxable. While most sales tax rates fall between 4% and 7%, they can be outside that range depending on the jurisdiction.
Why is sales tax applied in certain cases?
Each state has its own rules for when businesses must collect sales tax. Depending on the legal address associated with your account, Beyond may be obligated to add sales tax to your subscription fee.
What if my business is exempt from sales tax?
Some organizations qualify for tax-exempt status. To remove sales tax from your invoice, you must submit valid exemption documentation as required by law. Processing and approval of exemption requests can take up to 10 business days. If approval is granted at least 2 business days before your next billing date, sales tax will not be applied to that invoice or future ones, as long as Beyond retains valid proof of exemption in compliance with applicable laws.
Can Beyond assist with my sales tax for goods or services?
Beyond’s payroll system is built to handle payroll tax filings and payments, based on calculations made during payroll runs. If your business needs to charge sales tax on products or services, those transactions occur outside the payroll process and cannot be calculated or tracked within Beyond.
How is sales tax handled for accountants in Beyond’s Partner Program?
Regardless of how billing is set up, sales tax is determined individually for each client account, based on the legal address listed for that account.
Need Help?
If you still have any questions, please don’t hesitate to reach out. Our team will be happy to provide answers and assist you in any way we can.