TaxJar Talks How Sellers Save By Outsourcing Taxes

 

Another Friday Feedback is in the books, read along to catch what you missed!

On April 27th, 2018 our own Andrew Maff sat down with Jennifer Dunn, Chief of Content from TaxJar to talk about how TaxJar will help you collect the right amount of sales tax, also help you report how much sales tax you've collected and then file your sales tax returns.

 

 

Join us every Friday at 3 PM EST as we go LIVE on our Instagram page with the e-commerce industry experts and top sellers that you want to hear from! -- 

 

READ ALONG WITH TAXJAR ON SAVING WITH OUTSOURCING TAXES 

Jennifer Dunn: Hello!

Andrew Maff: Hey!

Jennifer Dunn: There we go. You know it was all because my portrait it was locked. My orientation was locked. It wouldn't let me in. So sorry about that.

Andrew Maff: No worries. How are you doing?

Jennifer Dunn: I'm good. I'm looking I look funny on this camera right now that's okay. I'm kidding. How are you?

Andrew Maff: I'm doing alright. Thanks for joining us. Welcome to our Feedback Friday. I saw you met our little guy. 

Jennifer Dunn: Who is he? What's his name?

Andrew Maff: So this is Jack.

Jennifer Dunn: Hi jack!

Andrew Maff: He's joined us in the office.

Jennifer Dunn: Aww

Andrew Maff: He was napping though so I'm gonna put him back down before he gets cranky.

Jennifer Dunn: You want a good boy.

Andrew Maff: This is our office now. We get to bring in the little guy.

Jennifer Dunn: That's awesome. I like your background too.

Andrew Maff: Thanks!

Jennifer Dunn: Yeah that's really cool.

Andrew Maff: Thank you. So how are things over at TaxJar? How are you doing?

Jennifer Dunn: Good. Things are well. It's really busy lately because there's been a big supreme court case going on about sales tax. So that's been giant.

Andrew Maff: Yeah

Jennifer Dunn: Plus April is a big final sales tax filing month too. So just like you know it always rains it pours.

Andrew Maff: Yeah. So what's going on with the court case? Anything you can tell us?

Jennifer Dunn: Yeah sure okay. So it's good news. A lot of people were worried. So basically I'll just long story short.
If the supreme court overturns this precedent which is called Quill, that would mean that any state could require any seller to collect sales tax. So right now you only have to collect sales tax in states where you have nexus. But if the supreme court messed with that then any seller, like you know your grandma who sells on Ebay in Florida, would have to collect sales tax on buyers in every state. It would be terrible. But I don't think that the state of South Dakota who was suing for this really made their case. I read the whole transcript of about 60 pages, I talked to a bunch of experts who were actually in the room where it happened and I think we're gonna be okay.
Now on the other hand you never can tell with the Supreme court. They may sometimes they ask difficult questions and you think oh well they are definitely not siding with this person they are trying to tear their argument apart. But really what their doing is asking difficult questions to make the person solidify their argument so you never want to look at a supreme court argument and say "Oh I figured out what they are going to say". However, I don't know I just have a good feeling. I think we're all going to be okay as online sellers and not have to do that. You still have to collect sales tax where you have a sales tax presence but you're not going to have to collect it in every state. At least not starting in June. When the ruling comes back.

Andrew Maff: Okay. And you guys really think that it will probably get turned down?

Jennifer Dunn: Probably. You know like I said I could be wrong. Its gonna be at the end of June so just stay tuned. We have the TaxJar blog, we do YouTube videos at TaxJar. Yeah so wherever you get your news just kind of stay tuned there. Were will definitely as soon as they release the ruling we'll be all over it and let you know.

Andrew Maff: We're gonna keep an eye out for that. And I think I can speak on behalf of everyone when I say "Please make sure that they don't do it". (laughs)

Jennifer Dunn: I know. I can't rival federal judge. Probably not a good idea. But we wrote a bunch of [inaudible 00:03:15] articles. Our CEO had an [inaudible 00:03:16] in Investors Business Daily that said "Please don't do this to harm the economy". You know we did as much as we could to try to show our side as well.

Andrew Maff: Yeah

Jennifer Dunn: We'll see.

Andrew Maff: So can you tell me a little bit about what it is TaxJar does?

Jennifer Dunn: For sure. So TaxJar, we will help you collect the right amount of sales tax if you need us to do that. And then we will help you report how much sales tax you've collected and then file your sales tax returns. So if you sell say on Amazon or Shopify then you're probably already collecting sales tax. But then from that point we will help you round up all that sales tax you collected on all your different channels on Ebay, on amazon, on whatever. And then we'll give you either a return ready sales tax report which means that we'll give you a sales tax report that is ready to log in and file or if you just don't want to deal with sales tax, you don't have time, your too busy then we will file your sales tax return for you anywhere from 16 to 25 dollars per filing.

Andrew Maff: And the opposite side of that would just be doing it yourself wouldn't it?

Jennifer Dunn: Yeah

Andrew Maff: Which no one.. if anyone is like me it's so not fun and it's complicated. So it is nice that you have someone who is able to do it for you and make it so simple. Like a lot of times the sellers I realized that they will put a lot of feeling behind getting something done themselves for free but not really understanding it and kind of getting stuff done. As opposed to going what's my time actually worth to sit her and figure out taxes and file them for days on end. Especially if your in multiple market places or selling in multiple states now and things like that.

Jennifer Dunn: Yeah we get that all the time. Like we.. somebody..Robyn Johnson. I don't know if you know her. She's a speaker on a lot of amazon stuff. She's great but one thing she says is "Think about it. It this worth a CEO's time." You're a CEO of a company a lot of times especially if you're just starting out. So a CEO would be spending time filling out an administrative government form. That's not gonna make you any money. Or would a CEO being doing deals or maybe some marketing or meeting a new vendor. So just think is it worth a CEO's time.
TaxJar starts at $19 a month. And we save people..we just did a survey. Gosh well it was back in October now so it was last year now. We did a survey and we thought that we saved people about 5 hours per sales tax filing month and but we got back that we saved people 25 hours. We were like "Wow that's a lot more than we thought". Yeah if you can pay $19 for 25 hours. No it's probably going to be a little more than that. TaxJar we grow with your business so up to a thousand transactions is $19 a month. Then up to 5 thousand is $50 a month. So you know if you're up in that where your spending 25 hours on sales tax your probably a little bit higher volume.

Andrew Maff: Yeah

Jennifer Dunn: Yeah but we've been saving 5 hours per month for $19 a month it's probably gonna be worth your while.

Andrew Maff: So are you guys primarily Amazon sellers, Shopify, their own marketplace sellers where do you see a lot of the traction coming in?

Jennifer Dunn: Well really it's weird that you ask that because it's multichannel sellers a lot of times. Most you can kind of dig into data and see that the people who are doing well are multichannel. The people that are really doing it you don't want to be on just one channel. Its probably not it means your limited. And of course I'm not telling anybody how to run their business. You might be on that one channel and your kicking butt but it's just sort of like the numbers don't lie. Multichannel is the way to go. So we see that.
And we also have an API so we collect sales tax for people. But that means that you might have your own shopping cart that you built. You might be a developer. Or you might use a shopping cart that didn't have sales tax built in for whatever reason and you use TaxJar. So yeah we do that as well. So we have everybody from just real technical developer types to a small guy who might only sell on Ebay, only sells one collectable item on Ebay. So we really collect the gamut.
our biggest I guess our most well known customer is Coca-Cola. I think they are the most well known brand in the world. Their our most well known but then yeah we have a lot of little guys as well. We gamut.

Andrew Maff: Nice yeah we preach. I don't know about Coca cola. We can't catch up on that one but we preach the same thing here of being on multi marketplaces. We deal with Amazon sellers all the time who are simply just you know doing every tiny little thing that they can do to just make a little bit more each month. I'm like "Yeah but if you went over to Ebay you could probably get 20 to 30% more minimum by just going over there. It is amazing how many sellers just stick to one marketplace and I just do not understand why.
I saw you guys integrate with big commerce as well. I saw that they just got a huge funding. And I'm interested to see if they get a little catch up over to Shopify and see if they really start to climb there.

Jennifer Dunn: I'm interested in that too.

Andrew Maff: Yeah we've started to see a handful of sellers coming in asking about big commerce or new ones who are already on big commerce. It'll be pretty interesting to see what happens there but good for them on that big raise. That's always nice.

Jennifer Dunn: Yeah we're gonna see them in June so we'll let them know. [inaudible 00:08:44] (laughs)

Andrew Maff: Bring them a cake and be like Congratulations! Here's your $63 million dollar cake. Yeah so I really appreciate you joining us. This is just something I really like to do so that all of our sellers and we put this up on YouTube so that everyone can see in the future. They are starting to get some real information about softwares and no one really wants to read a website or something like that so I'll let you do a bit of a closing statement if you want to tell us a little more about TaxJar. How people can find you, why they should work with you. It's all you

Jennifer Dunn: Closing statement now that's a good choice of words.

Andrew Maff: Yes exactly

Jennifer Dunn: We're all about supreme court lately. Oh my gosh. So yeah just you need to buy back your time y'all so if you're spending too much time on sales tax. Hey sales tax in not profitable. So if you're spending more than 10 or 20 minutes filing a sales tax return you're probably spending too much time. Also if you're making a profit on sales tax you're doing something wrong. Don't do that. You collect if from your buyer and then you give it back to the state. That's just another just kind of important thing we've run into a couple times lately. If you're spending too much time on it check out TaxJar. We have a 30 day free trial. You can literally just see if it's going to be right for you. You sales tax every once in awhile is just too easy. You don't need TaxJar yet. But as you get bigger, more transactions, you go multichannel, you have a more complicated business then feel free to check us out. We are always here to help.

Andrew Maff: Perfect. Jennifer I appreciate it.

Jennifer Dunn: Andrew thank you so much for having me.

Andrew Maff: Thank you for taking your time. Have a good one. Enjoy your day.

Jennifer Dunn: Yeah thanks. Bye bye

Andrew Maff: Bye.

 

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