Service Work ?? ie: Plumbing/heating?

bigwuhead · Jul 28, 2014

For those that do plumbing or heating or anyone who has had work done recently....

Do you charge/pay tax on labor and services? I understand for supplies, but I figured labor was a flat rate type of thing.

Zone9DeerSlayer · Jul 28, 2014

There is tax on labor, some companies figure the tax into certain jobs some don't.

Now heres where it gets tricky heating and AC labor is non taxable on the labor because its a necessity in single dwelling residential. In commercial/industrial buildings it is always taxed. Unless its a church they are exempt and must provide an ST-8

Plumbing service is taxable labor unless the work preformed is a home improvement.

Example: you call me to repair your existing toilet I rebuild the guts in the tank, you get charged for the parts and labor and I also collect sales tax for the labor. I already paid the sales tax on the parts when I bought them, witch I also pass on to you in the material price.
Now you call me to replace that same toilet and its not taxable because replacing it is considered a home improvement. The material sales tax was paid when I purchased it still passed on to you in the material price. Most companies only flat rate jobs that are considered home improvements. It could get extremely confusing for office staff if we flat rated time and material or T&M jobs.

The 4th year of plumbing school was all about knowing all this crap, it takes 9 months 3 hours a night two nights a week to understand the way the NJ manual works. Welcome to my office nightmares lol...

elkman · Jul 28, 2014

Service is taxable. I am in the HVAC business for 45 years and the tax code for services can be tricky. Heating for residence,service only for homes less than 6 family is not taxed. A contractor who performs a service with parts can not charge tax on the part, only labor as it would be a double tax. The contractor pays sales tax on parts when he buys them. The sales tax certificate is bs.The bottom line i tell the customer is that i don't charge tax,,,,,,,I collect it for the state.

Zone9DeerSlayer · Jul 28, 2014

elkman said:
The bottom line i tell the customer is that i don't charge tax,,,,,,,I collect it for the state.

^^^^^^^
That's the absolute truth.

Not only do we collect the sales tax as an agent of the state, we do it for free! Without choice of course. Also try sending it to them one day late every quarter. They penalize you! I hate this state more every day.

elkman · Jul 28, 2014

Zone9deerslayer said it correct. New is capital improvement,repair is taxed. My accountant told me many years ago if in doubt charge tax. The state is not going to call you and tell you collected too much sales tax.

bigwuhead · Jul 28, 2014

Okay, thanks. I feel like I'm paying a boat load of tax... on top of what is already a boat load of work (new well pump tank, whole house water softener, water filter, hot water heater). But I guess that is what paying tax is all about.

DeerMaster · Jul 28, 2014

Pay for the work in cash -under the table- so you don't have to contribute to the State workers pension shortfalls....[lol]

forceten · Jul 28, 2014

We tax for everything (except heating oil and off road diesel, but even that gets a 4 cent direct pay tax if you are not residential). This way we are always covered. And like they said - we are only collecting the tax for the state. It doesnt go to us anyway you look at it.

Zone9DeerSlayer · Jul 28, 2014

bigwuhead said:
Okay, thanks. I feel like I'm paying a boat load of tax... on top of what is already a boat load of work (new well pump tank, whole house water softener, water filter, hot water heater). But I guess that is what paying tax is all about.

You may have called the wrong guy, could be why the price is high. Not that I work free either.

loaded4bear · Jul 10, 2015

Here are the NJ capital improvement exemption overview guides ... all 24 pages of 'em:

http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su3.pdf

http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su2.pdf

& ST-8 tax exempt form:

http://www.state.nj.us/treasury/taxation/pdf/other_forms/sales/st8.pdf

Overly complicated & confusing? ... "YES", but this is New Jersey after all. [down]

bill43 · Jul 10, 2015

What's up with bumping old plumbing threads? Someone need work?

mikejd · Jul 10, 2015

Why didn't you ask one of our own to do the job. I am sure they would have taken better care of you. We are one big happy family.

mikejd · Jul 10, 2015

Mr waters have you just awakened from a coma. Some of these people may have moved by now.
this post is a year old.

jerseyhunter · Jul 10, 2015

What's up with bumping old plumbing threads? Someone need work?

That and post counts. As far as the answer No tax on material, that is paid for and included in the price. The labor is taxed @7% . They must also have license and be registered with the NJ Attorney Gen Consumer Affairs.

bill43 · Jul 10, 2015

mikejd said:
Mr waters have you just awakened from a coma. Some of these people may have moved by now.
this post is a year old.

This thread is so old that it has post from Deermaster in it. [ko]

2004boat · Jul 10, 2015

Capital improvement in not taxable such as roofing

teddrick · Jul 11, 2015

It took a year to figure how you guys "collect" and not pay....[hihi]

zipper · Jul 11, 2015

mikejd said:
Why didn't you ask one of our own to do the job. I am sure they would have taken better care of you. We are one big happy family.

She did. He's on this site. The guy also does taxidermy work. She gave him 2 bear hides to make into rugs. His handle is Bowguy.

bigwuhead · Jul 11, 2015

At Least we could have revived one of my posts with an animal in it! The work was done a year ago... I asked opinions about then.

and what the heck are you talking about zipper... I think you e got me confused with someone else LOL

Service Work ?? ie: Plumbing/heating?

bigwuhead

Zone9DeerSlayer

elkman

Zone9DeerSlayer

elkman

bigwuhead

DeerMaster

forceten

Zone9DeerSlayer

loaded4bear

bill43

mikejd

mikejd

jerseyhunter

bill43

2004boat

teddrick

zipper

bigwuhead

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