Overview
Once you establish a sales tax nexus in a jurisdiction, you must get compliant with that jurisdiction by registering to collect and remit sales taxes. There are two ways in which a nexus can be established in a jurisdiction:
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— Physical presence nexus means a seller has a physical presence in a jurisdiction sufficient for a state to impose a sales tax obligation. See Overview of physical nexus.
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— Economic nexus means a seller is deriving enough revenue and economic benefit from customers in a jurisdiction to warrant the jurisdiction imposing a sales tax obligation.
Anrok will show you where you are or
economic nexus, which may be an excellent time to get compliant and begin the registration process. Additionally, regular check-ins with payroll are essential to determine whether you have an employee in a new state that may require you to update your physical nexus information. See Monitor a jurisdiction's nexus status.