The tax agency is the department you will pay the sales tax to when taxes are due. This means that when you make a sale, you are responsible for collecting the appropriate amount of sales tax from your customer and then paying that tax to the tax agency. This process can be confusing, but don't worry - Cents is here to help!

When you use Cents to track your sales and generate reports, we will automatically calculate the amount of sales tax that is due for each transaction. However, it is important to note that Cents does not physically or automatically send the funds to the tax agency. It is your responsibility to make sure that the correct amount of sales tax is paid to the tax agency on time.

So, how do you know which tax agency to pay and how much to pay? Cents makes this easy by allowing you to set up your tax rates and agencies in our system. When you create a new tax rate, you can specify which tax agency it applies to. Then, when you generate a report, Cents will automatically calculate the total amount of sales tax due for each tax agency.

It is important to keep track of your tax rates and agencies in Cents to ensure that you are accurately collecting and paying the correct amount of sales tax. If you need to make any changes to your tax rates or agencies, you can easily do so in the settings section of your Cents account.

In summary, the tax agency is the department that you will pay the sales tax to when taxes are due. While Cents will help you determine what taxes are due and to whom, it is ultimately your responsibility to make sure that the correct amount of sales tax is paid to the tax agency on time. By using Cents to track your sales and manage your tax rates and agencies, you can ensure that you are staying compliant with tax laws and avoiding any potential penalties or fines.