How is the two percent timely payment allowance calculated?
On all sales tax returns filed and paid by the required due date, you are granted a 2 percent timely payment allowance. Take the amount of tax due times 2 percent. Then subtract this amount from the amount of tax due. For example:$100.00 tax due $100.00 x 2% timely allowance = $2.00 $100.00 – $2.00 = $98.00 The amount of tax due is $98.
