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Key Responsibilities and Required Skills for Tax Clerk

💰 $36,000 - $55,000

FinanceAccountingTax

🎯 Role Definition

As a Tax Clerk, you are responsible for day-to-day tax administration and compliance activities across federal, state, and local jurisdictions. This role prepares and files routine returns (sales/use, payroll, income, franchise), processes tax payments and 1099s/W-2s, reconciles tax accounts to the general ledger, performs research on notices and tax law questions, and supports audits and external tax advisors. The Tax Clerk works closely with accounting, payroll, procurement, and external tax partners to ensure accurate, timely filing and robust documentation to meet regulatory and internal control requirements.

📈 Career Progression

Typical Career Path

Entry Point From:

  • Accounts Payable / Receivable Clerk transitioning into tax-specific duties
  • Payroll Clerk with exposure to payroll tax filings and reporting
  • Bookkeeper or Junior Staff Accountant with basic tax exposure

Advancement To:

  • Senior Tax Clerk / Tax Specialist
  • Tax Analyst or Tax Accountant
  • Staff Accountant or Corporate Tax Associate

Lateral Moves:

  • Payroll Specialist
  • Accounts Payable/Receivable Specialist
  • Compliance Analyst

Core Responsibilities

Primary Functions

  • Prepare, review, and electronically file federal, state, and local tax returns — including sales & use tax, payroll tax deposits and returns, business income/franchise returns, and state withholding filings — ensuring timely submission and compliance with filing deadlines.
  • Compile, prepare, and file 1099/1096 and W-2 forms; validate recipient information, TIN matching, and calendar year reporting to meet IRS and state requirements.
  • Process tax payments and deposits (federal and multi-state), reconcile remittances to bank statements, and monitor payment schedules to avoid penalties and interest.
  • Reconcile tax-related general ledger accounts monthly and quarterly (sales tax liability, payroll tax accruals, income tax payable), prepare journal entries and adjustments, and document supporting workpapers for month-end close.
  • Respond to tax notices and correspondence from federal, state, and local tax authorities; research issues, prepare responses, and coordinate remediation or payment arrangements as needed.
  • Maintain tax calendars and deadlines for multi-jurisdictional filings, extensions, and payment schedules; proactively notify stakeholders of upcoming obligations.
  • Support tax audits and examinations by preparing requested schedules, organizing supporting documentation, liaising with auditors, and implementing audit recommendations.
  • Maintain and update vendor and customer tax exemption certificates and resale certificates; validate exemptions against state rules and ensure correct tax treatment on purchases and sales.
  • Assist with payroll tax processing and reconciliation: review payroll tax withholdings, prepare deposit reports, reconcile payroll tax accounts, and assist payroll provider or internal payroll team.
  • Perform tax research on basic technical issues (use tax, sales tax sourcing, nexus, withholding) using authoritative sources and internal tax guidance; escalate complex questions to senior tax staff or external advisors.
  • Prepare periodic tax reports for management and finance leadership, including sales tax reporting by jurisdiction, payroll tax summaries, and franchise/income tax schedules.
  • Use tax and accounting systems to record tax transactions, update tax codes and rates, and ensure tax configuration within ERP systems (e.g., SAP, Oracle, NetSuite) is accurate and current.
  • Execute certificate of insurance and vendor tax reporting processes, ensuring compliance for vendors and contractors and maintaining vendor tax classification documentation.
  • Maintain secure, organized tax files and documentation in accordance with company record retention policies and SOX/internal control requirements.
  • Coordinate with external tax preparers, CPAs, and consultants to provide documentation and reconciliations necessary for compliance and year-end tax preparation.
  • Assist with sales tax return compilations: collect transactional detail, perform jurisdictional sourcing, perform rate calculations, and reconcile to revenue and receivables data.
  • Monitor legislative and regulatory changes that impact filing requirements and taxability; update internal teams and recommend process changes to maintain compliance.
  • Support the preparation of tax provisions and simple deferred tax calculations under GAAP as directed by senior tax/accounting staff.
  • Verify and process tax credits, refunds, and abatements; follow up on refund claims, track status, and reconcile received amounts to tax accounts.
  • Maintain and troubleshoot e-filing systems and portals for multiple jurisdictions; resolve submission errors and coordinate re-submissions as needed.
  • Review intercompany transactions for proper tax treatment, prepare basic intercompany tax reconciliations, and escalate transfer pricing or complex matters to senior specialists.
  • Assist in implementing and documenting tax-related internal controls, ensuring segregation of duties where appropriate and contributing to internal or external SOX testing.
  • Provide timely, responsive support to internal stakeholders (procurement, sales, payroll, AP) on tax questions, policy clarifications, and transactional tax treatment.

Secondary Functions

  • Assist in ad-hoc tax projects such as sales tax nexus studies, process improvement initiatives, and tax system upgrades or implementations.
  • Support cross-functional teams during ERP tax module configuration, testing, and rollout; validate tax rate tables and transaction mappings in staging environments.
  • Prepare and maintain training materials, standard operating procedures (SOPs), and FAQs for common tax processes to improve departmental efficiency and knowledge transfer.
  • Participate in month-end and quarter-end close activities related to tax accounts, including preparation of workpapers and support for external reporting requirements.
  • Help manage the tax document intake process (W-9s, exemption certificates, payroll documents), ensuring timely follow-up and accurate records.
  • Perform basic data extraction and analysis using Excel or reporting tools to support tax filings, reconciliations, and management reporting.

Required Skills & Competencies

Hard Skills (Technical)

  • Federal, state, and local tax compliance and return preparation (sales & use, payroll, income/franchise).
  • Preparation and filing of W-2 and 1099 series (1099-MISC, 1099-NEC) and related information returns.
  • Experience with tax software and e-filing platforms (examples: CCH Lacerte, CCH Axcess, Intuit ProSeries, Drake, GoSystem, Avalara, Vertex).
  • Proficiency with ERP systems and tax configuration (SAP, Oracle, NetSuite, Microsoft Dynamics).
  • Advanced Microsoft Excel skills (VLOOKUP/XLOOKUP, pivot tables, INDEX/MATCH, basic macros) for reconciliations and reporting.
  • General ledger accounting and reconciling tax liability accounts; journal entry preparation and documentation.
  • Knowledge of payroll tax processes and payroll systems (ADP, Paychex, Workday payroll integration).
  • Familiarity with sales & use tax sourcing rules, nexus concepts, and exemption certificate management.
  • Basic tax research skills and ability to interpret IRS/state tax notices and statutes.
  • Experience maintaining tax calendars, tracking deadlines, and managing multi-jurisdictional filings.
  • Understanding of GAAP tax impact basics, tax provision support, and deferred tax concepts (preferred).
  • Strong recordkeeping and document management skills for audit readiness and internal control compliance.
  • Data extraction and reporting using reporting tools or SQL (preferred but not always required).
  • Familiarity with SOX/internal controls and documentation of tax processes.

Soft Skills

  • Exceptional attention to detail and accuracy in numerical and regulatory work.
  • Strong organizational skills with the ability to manage multiple filing deadlines and priorities.
  • Clear written and verbal communication skills for interacting with tax authorities, vendors, payroll, and external advisors.
  • Problem-solving mindset with ability to research issues independently and escalate appropriately.
  • Confidentiality and integrity in handling sensitive tax and payroll data.
  • Team-oriented collaborator who supports cross-functional accounting and finance initiatives.
  • Time management skills and reliability in meeting recurring and ad-hoc deadlines.
  • Adaptability to changing tax rules, software upgrades, and process changes.
  • Customer-service orientation for internal stakeholders and external vendors.
  • Analytical thinking and ability to summarize technical tax information for non-tax stakeholders.

Education & Experience

Educational Background

Minimum Education:
High school diploma or GED with relevant accounting/tax coursework or equivalent on-the-job experience.

Preferred Education:
Associate's or Bachelor's degree in Accounting, Finance, Business Administration, or related field.

Relevant Fields of Study:

  • Accounting
  • Finance
  • Business Administration
  • Taxation
  • Economics

Experience Requirements

Typical Experience Range:
1–3 years of accounting or tax-related experience for entry-level Tax Clerk roles; 2–5 years preferred for mid-level positions.

Preferred:

  • 2+ years of hands-on experience preparing tax returns and handling payroll and sales tax filings.
  • Experience with tax or ERP software implementations, e-filing portals, and multi-state compliance.
  • Prior exposure to audit support, governmental notices, or vendor tax reporting is highly desirable.
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