If you’re a professional photographer in the state of NJ, chances are you might be required to collect sales tax for some of your products. Here’s a video explaining what types of sales are eligible, how to register to collect taxes, and how to remit your taxes to the state:
TIPS & RESOURCES:
• What types of sales should photographers be collecting sales tax on?
• If you’re already a registered NJ business, fill out this REG-C-L form to get certified to start collecting sales tax.
• Here’s a worksheet to help you calculate the numbers that the online system will be asking you for.
• When you are recording sales of tangible products (albums, prints, flash drives, etc.), make sure you split it into two lines items: the cost of the product and the sales tax collected. Categorizing it correctly will make it easier to filter out those transactions when you fill out the worksheet [online]. If you “included” the cost of sales tax in the price you show to customers, here’s a reverse calculator to figure out what the tax portion would be.
• Here’s where you’ll need to log in to remit your sales tax collected each quarter (even if you had no tax eligible sales that quarter!). It’s called an ST-50 and can be submitted online.
• Here are the due dates for submitting sales tax after each quarter. (If you want to be on the safe side, just set yourself a reminder to submit them the beginning of every April, July, October, January.)
- 1st Quarter – Jan, Feb, March – due April 20
- 2nd Quarter – April, May, June – due July 20
- 3rd Quarter – July, Aug, Sep – due Oct 20
- 4th Quarter – Oct, Nov, Dec – due Jan 20
(If you collect more than $500 in taxes (i.e. ~$7,500 of taxable sales) each quarter, you need to remit taxes every month, not quarter.)
• The sales tax rate for 2018 & 2019 is 6.625% (or .06625).
Good luck! Feel free to reach out if you have any questions. <3 Lin