Splitting Labor and Material On A Real Bid

[dduffee260]

Sometimes we have to seperate out labor and materials because there is sales tax on materials and not on labor. I believe this is for a new construction project only, but I am not sure of this. You are supposed to show your marked up materials and the sales tax applied. This is always on private work and not public.

 

[Chamuit]

I usually get a sinking feeling when asked that. A lot of times the customer wants to see how much labor is going to cost. then you have to give alittle lecture on how paying a guy $10 an hour costs more then just $10 an hour. They never get it.

On another note. Here the tax is payed on the whole project. The tax is N% on parts and labor combined because it's contracting not Sales & Service. If you had a store front and were selling items retail wise it'd be different.