QB Issue Resolution:
Sales tax is a state and local issue and can be different depending on the services you provide.
From Cornell Law School
“Casual labor is not a legally recognized category, however: Workers performing casual labor are either independent contractors or employees, and the hiring company’s legal and tax obligations to workers performing casual labor are the same as for other workers.”
So what the plumbing company wants to do is treat you as an independent contractor, and if they pay you enough in a year would issue a 1099. In that scheme of things it would probably not be subject to sales tax but I’m not the final say – remember it is a local and state determination.
If you can find out for certain that what work you do for them would be same as if you hired them for plumbing repairs (probably taxable) to cover your behind you could bill them the amount they want to pay but in your own books deduct included tax and remit as you would normally.
Resolution for Issue 'In short, what happens when I’m asked to bill as casual labor (charge no sales tax) on my end? Will I have to pay down the road? Greg.' available: Yes (Solved).
Source: Intuit Community forum.
In short, what happens when I’m asked to bill as casual labor (charge no sales tax) on my end? Will I have to pay down the road? Greg.: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for Cornell Law School
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