charging sales tax on claims

[GoodGlass]

I just started a little business and im just faxing in the invoices but i was wondering if we were supposed to charge the insurance compaines more on a repair for tax or if that is included in the $50.00? It we can charge them, do we just write it in on the invoice or something?

I also noticed they charged me $7.00 for faxing in a claim. Is there anyway do get around that charge?

[Onsite]

Usually the sales tax block would only apply to the tech's doing replacements. Check with your accountant to confirm.

[StarQuest]

Is labor in your state taxable or nontaxable? If your not sure.... you better contact your accountant for accurate information concerning your tax laws.

[Sneck]

Insurance jobs are usually a flat $50, 10, 10 in most cases. Infact, when I signed up with ACT, somehere in the insurance paperwork, it said that the amount they pay is the total.

So for me to show tax on a $50 dollar invoice, I put the $50 down as the TOTAL, then divide that by 1.086 (which is 8.6%) to come up with a subtotal amount of $46.04. The difference of $3.96 is the tax amount.

[StarQuest]

Sneck,

I'm really confused by your last post. Do you live in a taxable labor state or nontaxable labor state?

[Sneck]

StarQwest,

I live in a taxable state. Whether I do a cash job for a retail customer or I do an insurance job - I work the numbers backwards (so to speak).

If I charged $50 dollars for a repair then my invoice would be something like this...

1 Rock chip repair $50.00
State Sales Tax $4.30
----------------------------
Total amount $54.30
I don't like a total like this because I have to mess around with making change for customers who pay me in cash.

For customers who write me a check, this amount is fine. But what about the customers who want to pay me in cash, and they give me $60 bucks to pay this invoice. Now I need to make change. Well I really don't want to have to mess with making change in the field so I prefer to keep the total invoice amount a nice round figure (like $40 or $50 or whatever).

But since I need to show tax on my invoices I start my invoice at the bottom with the total amount that customer is paying. Using the same example as above...


1 Rock chip repair $46.04
State Sales Tax $3.96
----------------------------
Total amount $50.00

By me doing my invoices this way,...
I am compliant by showing and collecting state sales tax.
My invoice total is an easy amount for customer to pay cash without having to make change for the customer. And for insurance jobs, my invoice total is the amount they pay (tax included).

I'm simply forcing my total invoice amount to be a nice round dollar amount like $40 or $50 or $60 (or what ever).

The math of it is simple...

My price = Amount collected divided by 1.086 (8.6% sales tax) which is $46.04
Then add the tax.
Then the total comes to a nice round $50 bucks.

I have a clip-board that folds open where I keep a stack of invoices and flyers and stuff. On the inside cover I taped a price chart (cheet sheet) for me to use so that I can write my invoices quickly without having to pull out the calculator.

[Clarity Glass]

Bill the insurance for the appropriate chip fees PLUS sales tax. GoodGlass, check out GlassComp--do a query on this forum on how to get set up with them.

[Bois]

I just read my Allstate O&A. It says, "If your state requires sales tax, you are to show sales tax on your invoices. You will be reimburesed for taxes; and you will pay that sales tax to your state authorities."

Dale...