Thanks to our partners at Sellercloud for this guest post.
Back in 2017, South Dakota v. Wayfair Inc. made it the law of the land that all online sellers are expected to collect sales tax on every transaction. This can be a confusing and time-consuming proposition for e-commerce sellers. Every state has its own tax rates and regulations that must be meticulously followed. Failure to follow these guidelines and document your compliance means stiff penalties should you face a state audit.
In response to these sales tax changes, most online marketplaces have added tools and features to help their sellers out. However, every marketplace is different. The way sales tax funds are charged, collected, and recorded can vary. This means that there is still legwork on your end to consolidate the records of your tax obligations, sort out your filing requirements, and send off your payments and paperwork in time to meet government deadlines.
Sellercloud’s TaxJar integration solves each of these headaches for you by folding convenience and compliance features directly into your existing e-commerce management workflow. As certified TaxJar partners, Sellercloud helps you to confidently maintain your business’s sales tax compliance.
TaxJar Handles Sales Tax Compliance So You Don’t Have To
One of the most impressive TaxJar features is its ability to interface with the marketplaces where you sell. Just like Sellercloud, TaxJar offers native, API, and third-party integrations with a wide array of e-commerce marketplaces and shopping carts. For Sellercloud users, these connections allow you to automate both your sales tax billing and collection across all of your listings.
This is made possible through the way Sellercloud integrates with a growing list of sales channelsthat go beyond TaxJar’s native integrations. For instance, while TaxJar doesn’t natively integrate with popular specialized marketplaces like NewEgg, Wish, or Reverb, Sellercloud does. Similarly, TaxJar offers a limited number of natively-supported shopping cart services (Shopify, Magento, and Volusion to name a few), but Sellercloud offers a much larger variety. Through Sellercloud’s integration with TaxJar, you can use TaxJar’s features to process orders across any of the marketplaces or shopping carts supported by Sellercloud.
TaxJar relies upon what they refer to as “rooftop-level” assessments to make sure that sales tax rates correspond to where each purchase is being made. This ensures that every sale is assessed with the proper tax rate, customers are charged accordingly, and every transaction is recorded for filing purposes. TaxJar stays on top of sales tax matters, sale-by-sale, so you don’t have to.
Another helpful TaxJar compliance feature is how it actively monitors your tax status in each state to ensure that you are prepared as you approach (or cross) economic nexus thresholds. Simply put, when your gross sales cross these state-specific dollar amounts, you are responsible for collecting and remitting sales tax to said states. In most cases, you are also responsible for registering for state-specific sales tax permits. The fact that TaxJar remains committed to sales tax compliance nationwide means no surprise expenses and obligations associated with crossing these nexus levels.
TaxJar Automates the Tax Filing Process
There’s more to taxes than just collecting the payments. Reporting these figures to states is perhaps even more taxing (pun intended). Being sure that the right forms are completed, payments are transferred to their appropriate destinations, and your business is fully complying with each state’s sales tax nexus laws can make even the most seasoned accountant groan.
Thankfully, TaxJar takes the pain out of the process. Not only does TaxJar provide users with accurate tax data and useful reporting features, but it also auto-completes and securely e-files the majority of your required sales tax documents. This saves you the time and stress of potentially filing fifty states’ worth of sales tax forms and payments on your own.
Adding TaxJar to Your Sellercloud Workflow is Easy and Seamless
Sellercloud’s TaxJar integration has always been popular with our users. We have been working in partnership with TaxJar for several years and have routinely coordinated and reviewed our integrations with them. However, since the South Dakota v. Wayfair Inc. decision, it has become exponentially more helpful. E-commerce sellers have more to worry about in tax compliance than ever before. Thankfully, the combination of both Sellercloud and TaxJar’s native integrations with leading e-commerce marketplaces makes the process especially simple.
While sales tax compliance can seem daunting, adding TaxJar to your Sellercloud business workflow is not. It only takes a few steps to link your TaxJar and Sellercloud accounts. Once configured, our TaxJar integration keeps your sales and tax data aligned on an order-by-order basis. In the case of a refund, Sellercloud can send the collected sales tax payment back to TaxJar on your behalf. All of these figures can automatically be added into your business’s profit and loss calculations, instantly increasing the accuracy of your financial reporting data.
In addition, you can use TaxJar to calculate sales tax amounts for phone or wholesale orders using our waytopay.me platform. These orders can be run through TaxJar to ensure you give accurate prices and collect the correct amounts from customers.
What’s more, the entire process is totally customizable. You can choose which specific marketplaces and sales channels to integrate with TaxJar. You can even configure TaxJar to only collect sales tax from specific states and not from others.
Of course, you can also take advantage of all of the aforementioned TaxJar features – accurate sales tax collection, nexus alerts, automated filing, and reliable record-keeping.
Ready to cross sales tax concerns off your list? Contact us directly for more information about getting started with our TaxJar integration.