Food Tax Question

  1. #1
    smilesarepriceless's Avatar
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    Ok...I am personally having a Tastefully Simple party in a few weeks..and I'm kind of confused about the whole food tax..and was starting to question the food tax and how we, PC do it..

    The TS consultant said that for example..if the food tax for a certain zip code was 0%, but the county tax is 1% that she charges them 1% for food tax so she doesn't have to pay it at the end of the year with her taxes?

    I totally didn't understand that..Does that mean I'm going to have to be responsible for paying the food tax come tax time for all my orders...?

    On the PC website, where the tax rate guide is..I see all the columns...city, county, state, food, etc..But my thinking is if a city says 0% food tax, then that means the customer pays no sales tax on the food item..

    ??ANY HELP?

  2. #2
    jrstephens's Avatar
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    Some states do not charge food tax. AL, my state, charges the same on everything.

    Whatever the guide says for each catagory is what should be charged. And if there is food tax, she should charge it to the guest not to you.

    I have never had to pay any type of sales taxes for my shows on my taxes, that makes no sense to me. Maybe someone else will know what she is talking about.

  3. #3

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    No! you will not be responsible for paying sales tax on anything in your business. PC takes care of that for us. I don't know what they are doing with taxes, but it sounds like they are responcible for paying all of them at the end of the year or something. I think there may be a difference in the way they order their products. Inventory vs show orders.

  4. #4
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    Quote Quote by ShanaSmith
    No! you will not be responsible for paying sales tax on anything in your business. PC takes care of that for us.
    That's right! Just another reason to love this company!!

  5. #5
    lkprescott's Avatar
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    I'm worried by what that consultant said... I wonder if TS doesn't collect sales taxes, like PC does and the consultants are responsible for them? If that's the case, what it sounds like she's doing might not be.... right (just saying)....

    I love that PC takes into consideration tax rates all over. In PA we don't charge tax on non-prepared food (groceries no tax - buy a burger at a McD's there's standard sales tax). PC calculates it all and submits it... I've done sales tax for a variety of businesses (including our own - for two states) and it's soooo convenient how PC does ours!

  6. #6

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    I think you need to get her to clarify what she said. If the tax rate is 0% then you and your guests should not have to pay it. If there is a tax rate then you should. Seems simple to me.

    Does TS carry stock? If so then your TS consultant probably paid tax when she ordered her supplies - however, she paid tax on her price (probably half the catalog price). If she's charging tax on the catalog price then she is making an additional 'small' profit on each sale. I know it's a miniscule amount, but it seems a little wrong. Get her to explain it again.

  7. #7
    chefann's Avatar
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    Quote Quote by pamperedlinda
    Does TS carry stock? If so then your TS consultant probably paid tax when she ordered her supplies - however, she paid tax on her price (probably half the catalog price). If she's charging tax on the catalog price then she is making an additional 'small' profit on each sale. I know it's a miniscule amount, but it seems a little wrong. Get her to explain it again.
    That's not necessarily correct. DH and I used to be reps for another company that was "buy at wholesale, sell at retail" and we had to pay the company sales tax on full retail when we ordered. Then, if we bought for personal use, we were supposed to submit a sales tax adjustment form to the state to get a refund of the difference.

  8. #8
    smilesarepriceless's Avatar
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    Thanks everyone. I am going to ask. I know I understood what she said..its' just that it makes no sense to me at all.

    EXAMPLE i live in TN --I"m having a show, but am collecting outside orders..so my mom, who lives in SC ( 29223) according to the PC tax guide, says
    1% city tax
    0% food tax
    7% state tax

    and the way she explained it is that my mom would need to pay the 1% city tax..but to me that made no sense ( just based on how we do it w/ PC).

    She does have inventory on hand, and so like you mentioned, that could also have something to do with it. I think i could tell I was asking her questions that most didn't ask..They just pay what she says to pay...but to me it was genuinely just trying to understand..not trying to nit-pick :>

    I was tempted to call Tastefully Simple, and just ask the 'general question' vs. the consultant who may not have the accurate info..

    But she has 19 recruits..and is really growing her business.One might assume she knows what she's doing ..

  9. #9
    chefshawna's Avatar
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    Well, from what I understand with our tax is that they tax you depending on where the items are shipped. My mom is in WV and she does catalog and occasional cooking shows for me, so they are shipped to her and non food tax is 6% and food tax 4%, but here in NC it is 6.75% and 2%. So, if I where to ship her items here she would pay the NC rate regardless of what her rate is. Does that make sense?? So, if your party is all going to be shipped to you then they all have to pay the rate for your area. So, maybe that's what she meant???

  10. #10
    chefshawna's Avatar
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    Or, you just need to recruit her and tell her that PC doesn't require you to pay extra taxes, they take care of all of that for you!!!!! LOL

  11. #11
    smilesarepriceless's Avatar
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    see, even when they have shows, it is all submitted as individual orders...and sent directly to each guests...So she was giving me info. as if it was going to SC..for my mom...I will seriously call TS tomorrow and let you guys know b/c now i'm just curious.. for curiosity sake..not that 1% on a $30 order is a big deal.

  12. #12
    jrstephens's Avatar
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    I have a friend that use to sale for Tastelyfully Simple. She did not pay any taxes herself. She charged the taxes to the customer based on their zip code just like we do.

    And all items are charged direct shipping and go straight the to customer. They do not all come to the host liek ours do.

  13. #13

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    Quote Quote by smilesarepriceless
    see, even when they have shows, it is all submitted as individual orders...and sent directly to each guests...So she was giving me info. as if it was going to SC..for my mom...I will seriously call TS tomorrow and let you guys know b/c now i'm just curious.. for curiosity sake..not that 1% on a $30 order is a big deal.
    If it is being shipped directly to your mom, then she would need to charge the tax that is required for where it is being shipped to. That is what happens with direct ship orders for PC, also.

  14. #14
    jrstephens's Avatar
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    Quote Quote by ChefBeckyD
    If it is being shipped directly to your mom, then she would need to charge the tax that is required for where it is being shipped to. That is what happens with direct ship orders for PC, also.
    But unless this consultant does it differently than other consutlants that I know, that is not how TS ships their stuff. They ship each order to the guest and only ship the host order to the host, so, the tax could be different on all of them depending on their zip code.

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