Figuring Sales Tax (Are You Paying To Much)

When you sell an item such as snacks and sodas through a vending machine or a snack box the local sales tax has to be figured out of the money you bring in.

If you’re not careful you can be paying taxes on top of taxes. My CPA once gave me this formula to help me from paying a tax on top of a tax when I figured my sales tax.

Lets assume your weekly sales are $5000.00 and your state sales tax is 5%. You are going to take your sales times 5 (Sales Tax rate) that equals 25,000. Then you are going to take 25,000 and divide it by 105 (Sales tax rate + 100) and that equals $238.10.

Now take $5000.00 minus $238.10 that equals $4761.90 and that is your actual sales. If you took $5000.00 times 5% you would be paying $250.00 in sales tax.

Total Sales $5000.00

5000.00 x 5 (Sales Tax Rate) = 25000.00

25,000.00 / 105 (Sales Tax Rate + 100) = 238.09523 round to 238.10 (Actual tax)

$5000.00 – $238.10 = $4761.90 (Actual sales)

I hope that these two examples are clear. It is never easy to discuss numbers in an article such as we have tried to do here.

Summary

Paying taxes is something we must all do and should feel like we have done something that helps our country to continue to be a great country to live in.

On the other side of the equation, over paying taxes has never been something that I have felt compelled to do.

The equation I have given above makes it possible to be fair to yourself and to the state you live in. Use the equation above and feel good about yourself.

With the extra money in your pocket at the end of each month take your’ loving spouse out for a meal.

Spring Sale

Our first spring sale is here! This is the lowest price on white snack boxes we have ever offered. You can buy the white snack boxes as low as $67.45 per case.

Along with that all the accessories are on sale. Double Bonus - save in two ways! Buy in quantity and you recieve the quantity discount and the sale discount.

White snack box, large coin box, white snack box tray shippers, tray stands, price labels, shortage control cards-all are discounted 10%!

Here is how you recieve the discount - put everything you want in the shopping cart (must add up to $100.00 excluding shipping).

In the Promotions and Discounts box enter the word sale in the yellow block. Below the yellow box look for the button that says update cart and click it. Your 10% discount is subtracted from your items, continue to paypal to pay.

Hurry to your savings! - Sale ends March 13th at midnight.

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