Sales tax reimbursements to units
Posted: Sun Feb 12, 2012 6:35 pm
I could probably get a more direct answer contacting HQ, but the depth of the forum's members will probably find us an answer faster and with less burden to the paid folk. That disclaimer aside, I ran into a question while executing a local unit audit today which while not specifically an audit exception, made the clerk and I wonder if the process was being done correctly.
The unit is in North Carolina, one of the two states that require merchants to collect sales tax on unit purchases The Church reimburses the unit by forcing a split category to introduce a line entry for the sales tax (which to 'reimburse' the unit is not deducted from the budget expenditure).
Our question was on the category title assigned by the Church in MLS - UTAH SALES TAX REIMBURSEMENT. Does this somehow cause the church to communicate incorrect information to the Utah taxing authorities? At least one other unit in our stake (which is actually centered in Virginia, a nontax required state that collects taxes unless an exemption is presented) has the same issue, MLS is set up to accumulate UTAH sales tax amounts. Previous versions (pre-CUBS?) I believe allowed the units to select their tax setup.
Programming problem? Non-issue?
And what of the scenario where the member makes the purchase in Virginia, without presenting the sales tax exemption certificate, should the Virginia tax be listed? (I don't think so; THAT should come from the unit's budget because they could have had the option to have the tax not collected, although obtaining that certification is somewhat difficult, but not impossible. IMHO only.).
Thoughts welcome. Thanks all.
The unit is in North Carolina, one of the two states that require merchants to collect sales tax on unit purchases The Church reimburses the unit by forcing a split category to introduce a line entry for the sales tax (which to 'reimburse' the unit is not deducted from the budget expenditure).
Our question was on the category title assigned by the Church in MLS - UTAH SALES TAX REIMBURSEMENT. Does this somehow cause the church to communicate incorrect information to the Utah taxing authorities? At least one other unit in our stake (which is actually centered in Virginia, a nontax required state that collects taxes unless an exemption is presented) has the same issue, MLS is set up to accumulate UTAH sales tax amounts. Previous versions (pre-CUBS?) I believe allowed the units to select their tax setup.
Programming problem? Non-issue?
And what of the scenario where the member makes the purchase in Virginia, without presenting the sales tax exemption certificate, should the Virginia tax be listed? (I don't think so; THAT should come from the unit's budget because they could have had the option to have the tax not collected, although obtaining that certification is somewhat difficult, but not impossible. IMHO only.).
Thoughts welcome. Thanks all.