If you saw a $20 bill on the ground, would you pick it up or leave it there? Lots of hot dog vendors are leaving money on the ground every month because they are figuring out their sales tax wrong, and they end up paying too much! There are many hot dog business courses out there that tell people the wrong way to calculate and pay sales tax. So although I'm not a tax professional, here is a simple and easy way to calculate your sales tax correctly so you're paying what's required, but not overpaying.
Sales Tax, Simplified
You might want to get a calculator, paper, and pencil out so you can follow along with my examples here. That way you can practice with me and then use this method for your own business. This is not rocket science, but it is math, so you want to get it right. Ready?
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