Sales Tax Nexus
Definition
The connection between a business and a state that requires the business to collect and remit sales tax. Nexus can be physical (office, warehouse) or economic (exceeding revenue/transaction thresholds). HelloBooks includes a nexus calculator.
Related Terms in US Tax
Section 179 Deduction
An IRS provision allowing businesses to deduct the full purchase price of qualifying equipment and software in the year of purchase, rather than depreciating over time. HelloBooks includes a Section 179 calculator.
Estimated Quarterly Taxes
Quarterly tax payments made by self-employed individuals and businesses to cover income tax and self-employment tax. Due April 15, June 15, September 15, and January 15.
Form W-9
The IRS form on which a US person gives their name, address and taxpayer identification number to a business that will pay them, so the payer can report those payments correctly. Collecting a W-9 before the first payment is what makes accurate 1099 reporting possible, and a missing one can trigger backup withholding.
Form 1099-MISC
The IRS information return for miscellaneous payments such as rent, prizes, awards and certain legal or medical payments. Non-employee compensation moved to Form 1099-NEC, so contractor fees no longer belong here.
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