TaxJar is an online, cloud-based platform designed to help business owners manage sales tax compliance across the United States. (TaxJar was acquired by Stripe in 2021, so you will sometimes see this software referred to as Stripe Tax.) TaxJar is a great option for tax calculations, nexus registrations, and automated returns.
But as useful as TaxJar is, software solutions can only take you so far. Think of it as a tool in your toolbelt, but not a member of your team. At HOST, we can take over the day-to-day management of your TaxJar account and fill in the gaps left by the software, so you can become 100% Hands Off Sales Tax, and stay focused on everything else it takes to run a business. Here are 5 benefits to letting our HOST team manage your TaxJar account.
1. Support As Your Business Grows
From startups to well-established businesses, our team has seen first-hand how sales tax compliance can be a huge pain point for entrepreneurs. As your business gains momentum and reach in new states, the last thing you want to worry about is navigating the complex world of sales tax.
Partnering with HOST to manage your TaxJar account can give your business a best-of-both-worlds scenario. You can leverage the simple, user-friendly TaxJar interface for nexus registration, tracking, auto filing, and reporting, while having a dedicated team of HOST sales tax experts in your corner. Our team can take over the management of your account and are always on standby to provide sales tax advice if you run into strategy questions or need help troubleshooting paperwork or notices with specific jurisdictions. (Since TaxJar is a software company, they are not able to offer individualized advice or consultation to their customers).
2. Filling in the Gaps
At HOST, we are big fans of TaxJar and appreciate its impressive capabilities. But, we also understand the limitations of the software and can provide targeted solutions to help you fill in those gaps.
For example, TaxJar does not AutoFile in Alaska, Puerto Rico, and Missouri, so HOST will manually file those returns as needed. Our team will check your account regularly to serve as an extra set of eyes on account activity. We’ll manage Nexus registration and AutoFile enrollments each month to ensure all returns are filed on time. We’ll also send a pre-filing summary every month before your TaxJar AutoFilings transmit. Our team also renews your sales tax licenses as needed (important for the handful of states who require action for renewals).
Working with HOST to ensure continued compliance can give you peace of mind, and also save your business time and money.
3. We’ll Handle State Notices & Renewals
From time to time, states will send notices to registered businesses requiring a change in filing frequency, a renewed sales tax permit, or a notice seeking another piece of information from your business. These notices are not handled through TaxJar, so TaxJar customers are left managing them on their own. If you partner with HOST, we can take care of state notices and manual sales tax permit renewals. Simply give the notices to us and we can determine if action is required and work alongside you to follow all the necessary steps to ensure your business remains compliant.
4. Make Sure You’re Not Overpaying or Underpaying
Even with TaxJar’s user-friendly interface, it can sometimes be difficult to tell if a business is over-collecting or under-collecting sales tax. Both scenarios can have serious ramifications for your business. TaxJar automatically remits based on the sales your business should have collected on each sale. If you are mistakenly over-collecting sales tax, the TaxJar software isn’t able to identify the error. Over-collecting and not remitting excess sales tax creates a legal liability for your business. On the other hand, if you’re under-collecting sales tax, your business is on the hook for the remaining sales tax owed to each state, which means precious profits are taken out of your pocket.
If your business partners with HOST, we will proactively monitor your tax collection variances each month, providing you with peace of mind and extra protection against potential legal ramifications or unnecessary profit loss.
5. Help with Audits
Audits happen, but they don’t have to be a nightmare for your business. If you partner with HOST, we’ll facilitate correspondence via phone or email in the event of an audit to ensure that the auditors have what they need.
Learn How HOST Can Help You Focus On Sales – Not Sales Tax
At HOST, we want you to focus on sales – not sales tax. Let our team of experts handle the management of your TaxJar account and gain the focus, support, and peace of mind you need to take your business to the next level. Reach out to our team to get started today.