Diane Posted February 15, 2009 Report Posted February 15, 2009 I have a client who sells Mary Kay products. Last year I signed her up with Maryland to pay sales tax on her sales. She tells me now that the Mary Kay company told her that THEY pay the sales tax when she purchases their products, that she doesn't have to pay any to the state. I guess I can't see how she can sell the products without collecting sales tax. Does anyone else have any Mary Kay experience? Diane Quote
TAXBILLY Posted February 16, 2009 Report Posted February 16, 2009 Don't know if this worksheet is helpful: http://www.vetscher-cpas.com/marykay/maryk...maryMaryKay.pdf taxbilly Quote
joanmcq Posted February 16, 2009 Report Posted February 16, 2009 She pays sales tax on the full retail price of the products when she buys them, even though she pays wholesale. Therefore, she has to make sure she charges the retail + sales tax price or she eats the sales tax. Quote
Diane Posted February 16, 2009 Author Report Posted February 16, 2009 Thanks for your help. I didn't know that the MK rep purchased as wholesale, but paid sales tax on the purchase based on the retail cost. Most MK reps have no idea what they are doing. Thank You. Diane Quote
kcjenkins Posted February 16, 2009 Report Posted February 16, 2009 That is why the company does it that way, frankly, because they do not want their salespeople getting in trouble for not paying sales tax, which most of them probably would, if left to their own devices. Quote
Tax Prep by Deb Posted February 16, 2009 Report Posted February 16, 2009 I don't know why the MaryKay consultant didn't already know that. I started selling MaryKay about three years ago, mainly to receive the discount on my own purchases. I went to their training course and everything was spelled out clearly as well as the information they gave us was very clear and to the point. I have dealt with several party plan sales type businesses, but I have to say MaryKay has it together as far as trying to help their consultants stay within the scope of the law. I knew from the beginning that I would be paying sales tax on the full amount, not my discounted price. And yes there maybe times when you will eat some of the sales tax but if that means keeping a client it's worth what little difference it might be. Just my two cents worth! Deb! Quote
OldJack Posted February 16, 2009 Report Posted February 16, 2009 >>I don't know why the MaryKay consultant didn't already know that.<< Some clients don't get it, have never gotten it, and never will get it. You just have to tell them every year the same thing and add something to your billing for the frustration. Quote
Bart Posted February 16, 2009 Report Posted February 16, 2009 She pays sales tax on the full retail price of the products when she buys them, even though she pays wholesale. I think it works that way for creative memories and tupperware also. Quote
jainen Posted February 17, 2009 Report Posted February 17, 2009 >>they do not want their salespeople getting in trouble for not paying sales tax<< It's heartwarming to hear of their great concern for the salespeople's well-being, but I'll bet the CORPORATE guys got visited by a few state authorities demanding this protection payoff for the privilege of staying in business. Quote
kcjenkins Posted February 17, 2009 Report Posted February 17, 2009 Well, sure, that is the 'why' behind their concern, naturally. Quote
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