Does OnPay collect Sales Tax?
Sales tax requirements vary by state, and not all states mandate that software companies, like OnPay, collect sales tax. If your account’s legal address is in a state, county, or city where our sales are taxable, your invoice may be adjusted accordingly. OnPay is committed to complying with all applicable sales tax laws.
How much is sales tax?
State and local governments set sales tax rates and decide what goods and services are taxed when sold within their jurisdiction. Sales tax is commonly between 4% and 7%, but it can be higher or lower.
Why is sales tax collected in some instances?
Each state has criteria and guidance around the qualifications for collecting sales tax. Based on your account’s legal address, OnPay may be required to add sales tax to your subscription fee.
If my business is tax-exempt, will OnPay still collect sales tax?
Certain businesses may qualify for sales tax exemption. These businesses are required to provide valid documentation, per applicable law, to suspend the collection of sales taxes.
The validation of exemption documentation may take up to 10 business days. If your documentation is validated and approved at least 2 business days before the next billing date, sales tax will not be applied to that invoice and any subsequent invoices, provided that OnPay maintains valid proof of exemption in accordance with applicable law.
Can OnPay help my business with sales tax?
OnPay is designed to streamline filing and paying your payroll taxes using wage calculations and deductions made during the payroll process. If your business charges sales tax for goods or services, these transactions occur outside of the payroll process, and cannot be calculated or tracked in OnPay.
I’m an accountant in OnPay’s Partner Program, how is sales tax calculated for my firm?
Regardless of billing preferences and settings, sales tax is calculated separately based on each individual account’s legal address.
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