Economic Nexus Dashboard
Economic Nexus qualification rules are complicated and hard to manage. Sidr Tax Economic Nexus Dashboard provides you with all the necessary information you need to stay on top of your sales tax collection responsibility. We match your sales records against the qualification rules of each state, and let you know when you are approaching economic nexus status ahead of time.
The requirements can be very different for each state when deciding whether you have Economic Nexus status. However, they are usually decided by a few key factors.
Physical presence
Number of orders
Sales amount
Whether to include exempted sales
Whether to include wholesale
The lookback period determines whether a sale should be included in the calculation.
Luckily, the Economic Nexus Dashboard takes care of all of that for you.
In the summary section, you can see all US states that require sales tax collection are split into three groups.
Nexus States: You have already reached Economic Nexus states in these states.
States Approaching Nexus: You are hitting at least 75% of the Economic Nexus threshold in these states.
No Risk States: Your sales volume is below 75% of the Economic Nexus threshold in these states, so there is currently no risk.
All US states are split into three Economic Nexus status categories You can also see a US map with three Economic Nexus statuses clearly visualized for you.
In the Economic Nexus state status section, you can see the details about how the Economic Nexus status is determined, and where you are at in terms of reaching the threshold.
In the example above, you can see that New York State has both a sales amount threshold and a transaction count threshold. And also, New York State uses a lookback period of the last 4 quarters. Sidr Tax aggregated all the sales records in that last quarters, and found that this merchant had 529 transactions in total, which exceeded the 200 transactions threshold. This means that the merchant has hit the Economic Nexus status in New York State, and should be collecting sales tax to stay compliant. The sales amount you see here already takes into account whether it should be gross sales, retail sales, or taxable sales only.
Gross sales: All sales including wholesale, non-taxable retail, and taxable retail.
Retail sales: Includes non-taxable retail, and taxable retail.
Taxable sales: Only includes taxable retail.
There is also a similar example of Utah State above. And since the merchant has a physical presence in the state, the merchant has Economic Nexus status even though the sales amount and transaction count are both below the threshold.
Please note that certain states may have multiple lookback periods. A merchant is considered to have Economic Nexus if the threshold is met for any of the lookback periods. As shown in the image above, there is a toggle in the lookback period line, and you can inspect any of them.
If you want to see more details about how the numbers are generated for the Economic Nexus Dashboard, there is a Report icon for each state. You will be able to see a detailed report after clicking that.
If you have hit the Economic Nexus status and don't have a sales permit in the state yet, you can reach out to us through chat, and Sidr Tax also offers a Sales Tax Registration service.
The Economic Nexus Dashboard is included in all paid plans for free.
Sidr Tax uses data up to the beginning of the previous year. However, each state might have different lookback periods. The Economic Nexus Dashboard takes care of the lookback period requirement for you automatically.
Great question! We are working on this product feature, and it will be available in our next update.
If you have additional questions, you can always chat with us in-app, or email us at support@sidr.io.
How to use the Economic Nexus Dashboard
Determine Economic Nexus
The requirements can be very different for each state when deciding whether you have Economic Nexus status. However, they are usually decided by a few key factors.
Physical presence
Number of orders
Sales amount
Whether to include exempted sales
Whether to include wholesale
The lookback period determines whether a sale should be included in the calculation.
Luckily, the Economic Nexus Dashboard takes care of all of that for you.
Economic Nexus Summary
In the summary section, you can see all US states that require sales tax collection are split into three groups.
Nexus States: You have already reached Economic Nexus states in these states.
States Approaching Nexus: You are hitting at least 75% of the Economic Nexus threshold in these states.
No Risk States: Your sales volume is below 75% of the Economic Nexus threshold in these states, so there is currently no risk.
All US states are split into three Economic Nexus status categories You can also see a US map with three Economic Nexus statuses clearly visualized for you.
Economic Nexus Status By State
In the Economic Nexus state status section, you can see the details about how the Economic Nexus status is determined, and where you are at in terms of reaching the threshold.
In the example above, you can see that New York State has both a sales amount threshold and a transaction count threshold. And also, New York State uses a lookback period of the last 4 quarters. Sidr Tax aggregated all the sales records in that last quarters, and found that this merchant had 529 transactions in total, which exceeded the 200 transactions threshold. This means that the merchant has hit the Economic Nexus status in New York State, and should be collecting sales tax to stay compliant. The sales amount you see here already takes into account whether it should be gross sales, retail sales, or taxable sales only.
Gross sales: All sales including wholesale, non-taxable retail, and taxable retail.
Retail sales: Includes non-taxable retail, and taxable retail.
Taxable sales: Only includes taxable retail.
There is also a similar example of Utah State above. And since the merchant has a physical presence in the state, the merchant has Economic Nexus status even though the sales amount and transaction count are both below the threshold.
Please note that certain states may have multiple lookback periods. A merchant is considered to have Economic Nexus if the threshold is met for any of the lookback periods. As shown in the image above, there is a toggle in the lookback period line, and you can inspect any of them.
If you want to see more details about how the numbers are generated for the Economic Nexus Dashboard, there is a Report icon for each state. You will be able to see a detailed report after clicking that.
If you have hit the Economic Nexus status and don't have a sales permit in the state yet, you can reach out to us through chat, and Sidr Tax also offers a Sales Tax Registration service.
FAQ
How much does the Economic Nexus Dashboard cost?
The Economic Nexus Dashboard is included in all paid plans for free.
How much data do you use to generate the Economic Nexus Dashboard?
Sidr Tax uses data up to the beginning of the previous year. However, each state might have different lookback periods. The Economic Nexus Dashboard takes care of the lookback period requirement for you automatically.
Can you notify me when I hit the Economic Nexus status?
Great question! We are working on this product feature, and it will be available in our next update.
If you have additional questions, you can always chat with us in-app, or email us at support@sidr.io.
Updated on: 01/23/2024
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