does a independent contractor have to pay sales tax?

Question

Should a taxi driver whois a independent contractor of a bigger company have to pay sales tax or just claim his own personal income tax?

Well I guess I have to explain the question better for all those who are like..of couurse this and I dont get it..let me give you another example. If you own a business...say Yellow
Cab, and you have 30 drivers. Each one of whom is a independent contractor. Say my name is Jerry and I am the owner of Yellow cab and all 30 drivers are signed indy contractors under jerry and yellow cab...Follow me so far...Yes i know indy contractors are responsible for their own taxes..However, Since jerry(the owner ) is paying sales tax on the sales of the business is it also left up to the individulal who is renting the cab as a indy contractor to pay sales tax once a month roughly 6% of total sales as well as paying his own taxes at the end of the year. Now since no one that answered before obviously owns their own business and know that sales tax is paid seperate from personal tax for business owners....only people who have or do own a business answer please...Thanks.

Answer 1

Your question makes no sense. Sales tax and income tax are two totally different things. Sales tax has nothing to do with whether you are an independent contractor or not.

Answer 2

I don't get what the taxi driver is paying sales tax on. If he buys something for his cab (like a new seat cover) he obviously pays that tax. If he buys gas the tax is built into the price. What situation are you asking about?

Answer 3

A cab driver has to pay sales tax and claim their own personal income tax.

Answer 4

Of course you pay sales tax! Why would you get an exemption for being a cab driver? The only business exemption for sales tax is for goods you purchase for resale. Unless you're selling something to your customers, you must pay sales tax on any purchases for your business.

Answer 5

Not sure what you are asking. If a taxi driver buys something that is taxable, then yes he or she will pay sales tax on it. If they sell something taxable, they'd collect the sales tax from the customer and remit it to the state. I don't know of any state that has a sales tax on cabfare, though.

Answer 6

that's no longer good. $4 hundred is sufficient to might desire to pay tax. Do each and every 365 days separately. Step a million: upload up each and every of the money for that 365 days. Step 2: positioned the entire on time table SE, on the corporate earnings line of trend 1040, and on the two time table C or time table C-EZ. Step 3: Fill out something of time table SE. Step 4: Fill out something of trend 1040. Step 5: Staple each and every of the kinds and schedules mutually. Step 6: Get a examine or funds order for the quantity that form 1040 says you owe. Step 7: positioned the stack of kinds and schedules and the examine or funds order in an envelope. Step 8: handle it to the IRS and positioned on the the desirable option postage. Step 9: Mail it.