We handle sales tax filing on Long Island for small businesses in Nassau and Suffolk: registering you if you are not registered, working out which filing frequency you are on, charging the right rate in each county, and filing on the state's schedule so the return is never the thing that slipped. Sales tax you collect belongs to the state, and the books should show it that way.
Registration and the Certificate of Authority handled
Nassau at 8.625 percent and Suffolk at 8.75 percent
Filed on the state's schedule, so the credit is never lost
Tax collected posted as a liability, not as income
We handle sales tax filing on Long Island for small businesses in Nassau and Suffolk: registering you if you are not registered, working out which filing frequency you are on, charging the right rate in each county, and filing on the state's schedule so the return is never the thing that slipped. Sales tax you collect belongs to the state, and the books should show it that way.
A quarter, end to end
Video coming soon
How a sales tax quarter runs
From the sales report to the filed return, and where the numbers come from at each step.
[confirm length once filmed]
What sales tax filing involves
Three things have to be right, and they fail independently. You have to be registered. You have to charge the correct rate on the correct sales. And you have to file and pay on the schedule the state has put you on.
The most common problem we see is not any of those going wrong outright. It is that sales tax collected gets recorded as income, so the profit and loss reports money the business is holding for the state as though it had earned it. The owner then makes decisions on a revenue figure that is inflated by whatever the rate is, and the cash to pay the return is not there when the return is due.
Tax you collect is a liability from the moment you collect it. We set the books up so it lands there, which makes the quarterly payment a transfer of money already set aside.
Registering, and the Certificate of Authority
You need a Certificate of Authority before you make your first taxable sale, and New York asks you to apply at least 20 days beforehand. It is what allows you to collect sales tax and what you display at your place of business.
If you are already collecting tax without being registered, you are holding money that belongs to the state with no mechanism to remit it. We cover that situation on the catch-up bookkeeping page.
Which frequency you file on
New York puts you on a frequency and can change it as your sales change. The filing requirements work out like this:
Annual. If your tax due for the year is $3,000 or less, you file one return for the year.
Monthly. Once taxable sales pass $300,000 in a quarter, you move to monthly filing. This is the one to watch, because the move is a consequence of growth and it also costs you the vendor collection credit.
Long Island runs two rates: 8.625 percent in Nassau and 8.75 percent in Suffolk. Both include the 0.375 percent MCTD surcharge that applies because Long Island is inside the Metropolitan Commuter Transportation District. Suffolk's county share rose on 1 March 2025, which is why the two no longer match.
For a business filing quarterly, that credit is up to $800 a year for doing something you have to do anyway.
The New York sales tax audit
What the auditor asks for, and the three numbers that have to agree.
Collected sales tax is held for the state, and responsible person liability puts it on the people who run the business personally.
What this looks like in practice
These are the situations we are typically brought in to fix on Long Island. Details are generalised, and we never publish a client's business.
1
A Garden City clothing boutique
Garden City, Nassau County
What we found
Treating all clothing under $110 as fully exempt, so the Nassau local portion was never charged on any of it across five quarters.
What we did
Corrected the point of sale tax setup to charge the local portion on exempt-threshold clothing, quantified the shortfall, and filed the amended returns.
Where it landed
Exposure settled at a known number and the till configured so it cannot recur.
2
A Bay Shore bar and restaurant
Bay Shore, Suffolk County
What we found
Sales tax collected and recorded as revenue, so the profit and loss overstated income by roughly the rate and the cash for the quarterly return was never set aside.
What we did
Reposted collected tax to a liability, rebuilt the prior periods, and set a weekly transfer to a separate account for the amount collected.
Where it landed
A revenue figure the owner can use, and a return paid from money already put aside.
3
A Hauppauge distributor
Hauppauge, Suffolk County
What we found
Moved past $300,000 of taxable sales in a quarter and stayed on the quarterly schedule, so two monthly returns were late before anyone noticed the frequency had changed.
What we did
Filed the late periods, moved the calendar to monthly, and set a threshold alert so the next frequency change is seen before the state applies it.
Where it landed
Current, with the growth that caused it no longer a filing risk.
What it costs
A flat monthly fee, quoted from your transaction volume, your accounts, and whether you run payroll. You get the number in writing before any work starts. Catch-up work is quoted separately so it does not inflate the ongoing fee.
Basics
$250per month
Solo owners and single-location businesses under about $50k of monthly expenses.
Monthly bank and card reconciliation
Expense categorization with bank rules
Profit and loss, balance sheet, and cash flow every month
Sales tax return prepared and filed at your county rate
Ro Sokhi is a New York licensed CPA. The person who signs off on your numbers is the person who can tell you what they mean for your tax bill.
Flat monthly fee
You know the number before the month starts. No hourly meter, no surprise invoice for a phone call in March.
On Long Island, not a call center
Staffed offices in Melville and Hicksville. We will come to the shop if the shoebox is easier to hand over than to scan.
Catch-up work is normal here
Most businesses that call us are behind. Some by a quarter, some by three years. That is the job, and it is quoted separately so the monthly fee stays clean.
Our offices
Both offices are staffed. Most work happens electronically wherever you are, and the offices are there for the businesses that would rather hand something over in person.
Suffolk County Office
68 S Service Rd #100 Melville, NY 11747
On the South Service Road off the LIE, serving Suffolk County and eastern Long Island.
Sales tax rates by county.Publication 718: New York State Publication 718 lists the combined rate for every jurisdiction, including Nassau at 8.625 percent and Suffolk at 8.75 percent.
Suffolk's rate change.Sales tax rates bulletin: Suffolk raised its local rate from 4.25 to 4.375 percent effective March 1, 2025, which is why the two counties no longer match.
Clothing under $110.Publication 718-C: Publication 718-C sets out which localities exempt clothing and footwear under $110 and which continue to tax their local portion.
MCTMT employer rates.MCTMT employer rates: The payroll expense threshold and the Zone 2 bracket rates that apply to Nassau and Suffolk employers.
MCTMT if you are self-employed.0.34 percent on Zone 2 self-employment earnings: Long Island is Zone 2, where net earnings from self-employment are taxed at 0.34 percent above a threshold that rises to $150,000 for tax year 2026.
The vendor collection credit.5 percent of tax due, up to $200 a period: Quarterly and annual filers who file on time keep 5 percent of the tax due, up to $200 a period. Monthly filers and PrompTax enrollees are not eligible.
Property tax, full value rates.Overall full-value tax rates by county: New York State's overall full-value tax rates by county: Nassau $36.90 and Suffolk $18.90 per $1,000 for 2021, against $27.70 statewide outside New York City.
Long Island Innovation Park at Hauppauge.1,300 companies at the Innovation Park: HIA-LI, the park's steward, publishes the 1,300 company count cited in the capital map.
CPA licence verification.NYSED licence register: The New York State Education Department register, where any CPA licence can be checked, including ours.
Every rate on this page links to the New York State authority that publishes it. Figures are current as of the date shown above. They explain how the numbers work and are not tax advice for your situation.
Every rate on this page links to the New York State authority that publishes it. Figures are current as of the date shown above. They explain how the numbers work and are not tax advice for your situation.
Questions
What is the sales tax rate on Long Island?
8.625 percent in Nassau and 8.75 percent in Suffolk. Both include the 0.375 percent MCTD surcharge. Suffolk is higher because its county share rose on 1 March 2025 with the water quality surcharge. Residential energy in Suffolk stays at 8.625 percent.
How often do I have to file?
Most businesses file quarterly, due 20 March, 20 June, 20 September and 20 December. If your tax for the year is $3,000 or less you file annually. Once taxable sales pass $300,000 in a quarter you move to monthly.
Do I have to file if I had no sales?
Yes. A return is due for the period whether or not there were taxable sales, and a late return with no tax due still carries a $50 penalty.
What is the vendor collection credit?
If you file quarterly or annually, file on time and pay in full, you keep 5 percent of the tax due, up to $200 for the period. Monthly filers and PrompTax businesses do not qualify, and it cannot be claimed on a late or amended return.
I sell in both counties. How does that work?
The rate follows where the sale takes place, so you charge Nassau's rate on a Nassau sale and Suffolk's on a Suffolk sale. We set this up in the point of sale or invoicing so the correct rate is applied automatically on each sale.
How much does a bookkeeper cost on Long Island?
Our plans start at $250 a month for a solo owner and run to $850 for a multi-entity business, set by your monthly expense volume rather than by the hour. You get the number in writing before any work starts. Independent bookkeepers on Long Island often quote hourly, which looks cheaper until a busy month arrives; a flat fee is a number you can budget.
My books are two years behind. Is that a problem?
It is the most common reason people call. We work backwards from the last filed return, rebuild the periods in between, and reconcile to the bank rather than to whatever the prior file says. You get a clean starting balance and a written list of what changed. Catch-up is quoted as a one-time project, usually one to two months of the recurring fee.
Do you file sales tax returns?
Yes, and on Long Island that matters more than most places. Nassau charges 8.625 percent and Suffolk charges 8.75 percent, so a business selling in both counties collects at two rates and has to report them separately. We register you if you are not registered, review what you are collecting, and file on whatever schedule the state has put you on.
Are you a CPA firm?
Ro Sokhi is individually licensed as a CPA in New York and leads the work. The operating entity is a business corporation and is not registered with NYSED as a public accounting firm, so we do not perform audits, reviews, or compilations. If your bank or a buyer needs assurance work we will tell you plainly and point you to a registered firm.
What is the difference between a bookkeeper and a CPA?
A bookkeeper records what happened. A CPA is licensed, can represent you before the IRS, and can tell you what the numbers mean for your tax position and your decisions. Most small businesses are sold one or the other. Here the bookkeeping is done to a standard a CPA is willing to sign off on, and the same person handles the return.
Do you work with QuickBooks, or do I have to switch?
QuickBooks Online for most clients, and Xero where a business is already on it. We do not force a migration for its own sake. If you are on spreadsheets, a shoebox, or a system your last bookkeeper set up badly, that is a normal starting point and we will move you when moving is worth it.
How long does it take to get started?
A first call takes about twenty minutes and a quote follows the same day. Once you accept, we need read-only access to your bank and card feeds and your last filed return. Most businesses are fully onboarded inside two weeks; a business needing catch-up work takes longer, and we tell you how much longer before you commit.
Do we have to meet in person?
Only if you want to. Most clients send documents electronically and talk to us on a call. The Melville and Hicksville offices are there for the businesses that would rather hand over a box of receipts than scan them, and for anyone who wants to meet the person doing the work before handing over the books.
Can you handle payroll as well as the books?
Yes. We process payroll, file the NYS-45, and track the MCTMT, which applies here because Nassau and Suffolk are inside the Metropolitan Commuter Transportation District. We also review worker classification, because contractors who work like employees are the payroll issue New York challenges most often.
What happens if I get a letter from New York State or the IRS?
Send it to us the day it arrives. Most notices are routine and are resolved with a reconciliation and a reply. Ro is a CPA and holds unlimited representation rights before the IRS, so if a notice turns into something more, you are not looking for help at that point.
Are you taking new clients right now?
Yes. We keep the client list small enough that the same person reviews your file every month, so there are periods when onboarding runs a few weeks out, and we tell you that on the first call rather than after you sign.
