Taxes

Businesses with employees must set up an account with the Oklahoma Tax Commission (OTC) for withholding and remitting state income taxes from the wages and salaries paid to employees.

Employers must also set up an account and withhold and remit state unemployment taxes to the Oklahoma Employment Security Commission (OESC).

At the Federal level, business owners with employees are required to obtain the necessary forms and set up accounts with the Internal Revenue Service to withhold and pay federal income and Social Security taxes.

To help businesses identify and comply with federal income tax rules, the Internal Revenue Service (IRS) has a complete online resource dedicated to small businesses.

Employers are required to cover their employees in Oklahoma with Workers' Compensation Insurance, through an insurance agent. Contact your insurance agent to learn more.

The sale of tangible products or material items to customers in Oklahoma involves the collection of sales taxes. Wholesale and retail businesses that sell such items to customers in the state are required to obtain one or more applicable sales tax permits (STPs) from the Oklahoma Tax Commission (OTC). STPs from OTC are the most issued regulatory permit in the state.

Sales tax collections are also required of special service businesses such as hotels, motels, recreational cabins and bed & breakfast operations, as well as car rental service owners and warehouse operators. Vending business owners and trailer dealers are also required to be permitted or licensed by OTC and to purchase decals and stickers to be placed on their machines and trailers.

The sale tax rates for cities, towns and communities in the state are available from OTC. Under their related STP number, wholesaling and retailing businesses must charge and collect sales taxes (based on multiplying the applicable percentage rates against the prices of the items sold to customers). Then the taxes must be remitted to OTC, along with a report.

A wholesaler is not required to charge and collect sales taxes if it is selling its items to a retail or resale business customer that has a required STP.

There is a general sales tax permit (STP) for general products, as well as "special permits" required for the sale of products such as gasoline, cigarettes, beer and wine, liquor, vehicle tires and other items.

The act of applying for or obtaining one or more STPs from the OTC is also called registering. A STP is also one of the items that must be obtained online from the OTC website.

However, an exception can pertain to a customer with an exemption certificate such as those issued to disabled veterans.