BobH,
BTW, whether you did it quarterly or not depends on the amount of taxable sales you have. If you're below a certain level you could do it only once a year.
Here's my understanding of how it works; (I'm using round numbers that are easy to deal with)
You buy $100.00 worth of materials and pay $8.75 in sales tax to the supply house. You do a job and mark up the materials to $150.00 and have $250.00 in labor costs.
$150.00 + $250.00 = $400.00 job cost
Sales tax (8.75%) = $35.00
$400.00 + $35.00 = $435.00 you collect from Customer.
When you file the NYS Sales Tax form you report the $400.00 as a Taxable sale which gets multiplied by the tax rate (8.75%) and comes up with $35.00 that you tentatively owe to NYS in sales tax. You then put the $8.75 that you paid the supplier as a credit (for sales tax already paid) on the form and it gets subtracted from the $35.00. BTW, you have to attach a separate note explaining that the credit in Box #?? is for sales tax already paid on materials used in taxable sales.
So, $35.00 - $8.75 = $26.25 owed to NYS. You get a small credit for performing the sales tax collection service, so the amount you send them would be slightly less.
Bill
