I'm the bookkeeper for a local bakery in in Omaha, Nebraska. Our sales have been growing at a steady clip and I'm wondering how often we should be remitting sales tax returns if in the beginning of the year business was slow? We initially remitted sales tax returns on a quarterly basis and now apparently should do it on a monthly basis? Also, what happens if our sales drop and we are no longer expected to remit on a monthly basis?

This is an excellent sales tax question as the filing frequency requirements in Nebraska may not be very clear for businesses with fluctuating sales. Generally, speaking Nebraska Department of Revenue assigns the filing frequency requirement unless their sales tax liabilities fall within the following categories. Specifically, annual returns are required if the retailer's yearly tax liability is less than $900, quarterly returns are required if the yearly tax liability is $900 or more and less than $3,000, and monthly returns are required if the yearly tax liability is $3,000 or more. Thus, you should be remitting sales tax returns on a monthly basis as soon as you believe your yearly tax liability is over $3,000. Even if you see the business faltering and not collecting that level of sales tax liabilities, then you should still continue to collect on a monthly basis to be conservative.