Labor & Material - How do you price a job

[Guest loudenning]

I'm an auto glass company just getting into tinting and wondering how you bill a job. Do you charge all labor so no tax? What about the material? Do you split it up, part labor part material?

 

[Ocala]

You should maybe talk to you accountant about that. Not sure about how others do it, but every shop I have worked at doesn't pay tax on the film purchase(auto film) but charges the tax on the full price of the consumers purchase. 

[whitehog]

First, I would suggest that you talk with your CPA to discuss what possibilities are best for your situation in your state. Most generally, there are several options that are available:

 

1) Charge your customer sales tax accordingly to meet state guidelines.

2) Have your film supplier charge you tax on your film and tool purchases, thereby not having to charge your customer sales tax.

3) Buy your film and tools and charge no tax to your customer. At end of year pay a "Use Tax" to your state.

4) Buy your film and tools and charge no tax to your customer. Pay no tax to state. (Understand this option has dire consequences if ever audited, and yes there are some out there that do this.) I would definitely not suggest this option. LOL

 

Above all else, the last thing you want is the State using a microscope on you. It is always best to contact a CPA to discuss the options available for your particular State.

[alexiac]

Every State is different so be sure to ask a CPA or you could even call your State Tax office.  Years ago when we were first opening up in OK I contacted our State Government office and they told me I would not need to charge taxes because our material cost were so low and the state did not charge taxes on service businesses but that was a long time ago and things change.  Always good to be sure so there are no problems down the road.  Good Luck!