Sales and Use Tax Solutions for Businesses with Less Than 1000 Employees. March 4, 2009, 12-1pm EST

Transcription

1 Sales and Use Tax Solutions for Businesses with Less Than 1000 Employees March 4, 2009, 12-1pm EST 1

2 Housekeeping Items Today s webinar will last for 60 minutes, ending at 1pm eastern time. There are more than 200 of you in the audience today! Please submit your questions online and we ll answer them during the last 10 minutes of the program. At the conclusion of today s webinar, we re going to launch a brief online survey. Those who spend a few minutes completing the survey will be entered into a drawing for an ADP TotalPay Debit Card, preloaded with $100 and good anywhere Visa is accepted. For more information on the TotalPay Card and other ADP Payment Solutions, visit us on the web at adp.com 2

3 CPE Credit Requirements Log in from same address that you used to register Stay for the full hour Answer 3/5 polling questions Are you applying for CPE credit for today s webinar? A. Yes B. No C. Not applicable 3

4 Today s Speakers Matthew S. Walsh Director, Tax Research ADP Tim Walsh Senior Director of Product Management ADP Annette Kovamees Director of Tax Compliance ADP 4

5 Agenda ADP s Capabilities in the Sales and Use Tax market Available Solutions Sales and Use Tax System ADP Sales Tax Service Implementing an Automated Solution: What to Expect Benefits of Using an Automated Solution Tax discussion Questions & Answers 5

6 ADP s Capabilities in the Sales and Use Tax Market 6

7 Experts in Sales and Use Taxes Dedicated Staff of Tax Attorneys Clients have direct access to 50 CPA s, CMI s*, tax attorneys, and analysts Fluent in numerous languages Superior Tax Content ADP researches, develops, and maintains content using inhouse resources; we do not outsource or purchase research from third parties. Industry Leadership First and strongest supporter of the Streamlined Sales Tax Initiative (SSTI), a nationwide effort to harmonize sales and use taxes Over 30 years of experience *CMI = Certified Member of the Institute, a designation from the Institute for Professionals in Taxation (IPT) 7

8 Industry Leading Tax Content Content update strictly controlled by mature processes and procedures SAS 70 type II compliant by KPMG audit Content updates provided at least once a month Updates include: New content Law changes Rate changes Processing changes Out of the box standard good/service and entity use codes More standard content means: Less customization Less maintenance Faster time to production Additional content is continually being added to cover new tax rules and industries Centralized data update process Update information letter provided with each summarizing changes Special Tax Rules Tax Type Determination Tax Holidays Special Tax Zones 8

9 Sales and Use Tax Calculation Options ADP offers Sales, Use, and Value Added Tax (VAT) solutions Integrations available for Oracle PeopleSoft JD Edwards Siebel SAP Microsoft Dynamics GP Infor And many more! Turn sales tax compliance into one of your company s strength 9

10 Polling Question #1 Requirements Log in from same address that you used to register Stay for the full hour Answer 3/5 polling questions Today, what is your process for managing your sales and use taxes? A. Manual methods B. Mixed process: some manual, some software C. Third party software (ADP, Sabrix, Vertex, etc.) D. Hosted solution E. Home grown solution F. Other G. Not applicable 10

11 Sales and Use Tax System 11

12 Sales and Use Tax System Domestic tax engine for the U.S. and Canada Calculates taxes for sales, purchases and rentals Manages jurisdiction and calculation processing for 13,000 sales tax jurisdictions in U.S. and Canada Includes exemptions, special rates, caps and thresholds Records tax results in Audit File for later reporting Includes comprehensive Product Taxability Matrix (over 3,000 classifications) POS solution for many customers 12

13 Sales and Use Tax System Domestic tax engine for the U.S. and Canada Includes STEP system for exemption certificate management Includes VeraZip for determining taxing jurisdictions Optional GeoTAX module from Pitney Bowes Business Insight provides GPS-based rooftop accuracy Addresses tax compliance for purchases with consumer s use tax capabilities Allows for tax decisions by vendor, business location, product, service, cost center, or project 13

14 Sales and Use Tax System Overview Nexus Requirements Tax Rates/ Rules Product Taxability Matrix ERP, Finance or Accounting Application ADP Sales and Use Tax System Audit File VeraZip: Determine Tax Jurisdiction STEP: Sales Tax Exemption Processing Standard Reports Returns 14

15 Polling Question #2 Requirements Log in from same address that you used to register Stay for the full hour Answer 3/5 polling questions Which ERP or accounting software are you currently using in your business? A. SAP B. Oracle C. PeopleSoft D. JD Edwards E. Great Plains F. Lawson G. Infor H. Sage I. Other J. Not applicable 15

16 ADP Sales Tax Service 16

17 ADP Sales Tax Service Compliance Solution Hosted by ADP Based on your tax data, ADP Creates and files Sales and Use tax returns (Paper, EDI, Web) Makes payments (EFT, Check) to all state and local jurisdictions Handles all agency notices Liability for the timing and accuracy shifts to ADP Based on a solid foundation: ADP has 60 years of tax filing and remittance experience more than any other U.S. company 17

18 Overview: ADP Sales Tax Service CLIENT ERP, Finance or Accounting Application ADP State and Local Jurisdictions NOTICE HANDLING Tax Engine Audit File SFTP Return Preparation and Filing Payment Processing Standard Reports Tax Return Copies & Reporting to Client 18

19 Monthly Calendar Used for the ADP Sales Tax Service 19

20 Process Used by the ADP Sales Tax Service Business Day 1-4 Customer transmits data via secure FTP as soon as books are closed (AR/AP) Business Day 5-8 ADP prepares returns and reconciles source data to returns Business Day 8-10 Returns and reports available for download. Debit notice sent to customer - (S/U Liability) Business Day Funds transfer (Wire, ACH Credit) Due Dates ADP executes payments on behalf of client and files returns as required (Web, EDI, Paper) 20

21 ADP Sales Tax Service: Exceptions Pre Payments/Estimated Payments ADP will track your schedule, remind you and execute the payment on your behalf Adjustments ADP will make adjustments to returns based on client instructions Holds ADP will track your holds and release as appropriate Amended Returns ADP will prepare based on client instructions. Additional fees may apply 21

22 ADP Sales Tax Service: Reporting Return Copies ADP provides copies of all returns for review by client Reconciliation Reporting Showing data in vs. data out and any differences on a high level Detailed Reporting by Return Breakdown of amounts by return, showing data received, holds, adjustments, pre-payments, discounts etc. 22

23 ADP Sales Tax Service Tax Return Preparation, Filing and Payment Get Tax Data Prepare For Filing Prepare Returns Process Payment Disburse & File Returns Problem Resolution Run Reports From Tax Engine Consolidate to Filing Spreadsheet Enter tax data on forms Prepare Check Request Collate Checks & returns Manage Thresholds & Due Dates Run Reports/ Extract Data from ERP system/s Calculate selfassessed tax Obtain Pre-payment info Obtain Bad Debt info Enter Pre-Payment Information Enter Bad Debt Info Hold Credits/ Negative Amts Enter Voucher (AP) Approve Voucher Execute ACH (Treasury) Mail Returns Track Credits Negative Returns Notice Handling Get Data from Remote Locations (Stores, BU s etc.) Calculate Discounts Print Check/ Generate ACH Web File/ EDI file P & I Abatement Requests Reconcile to G/L (Print Returns) Review & Approval Archive Back up Review & Approval 23

24 ADP Sales Tax Service: Web Interface 24

25 Polling Question #3 Requirements Log in from same address that you used to register Stay for the full hour Answer 3/5 polling questions How many sale and use tax returns are you preparing each month? A B C D. 50+ E. Not applicable 25

26 Implementing an Automated Sales and Use Tax Solution 26

27 What to Expect Timeline: 8-10 week anticipated implementation plan. Process: Kickoff Client configuration data gathering Data delivery and validation Testing Upload/download testing and training Production and support Implementation: ADP s number one priority is to have you up and running as quickly and as smoothly as possible, while providing full technical and service related support. 27

28 What to Expect Allow days from contract signing to go live Filing set up (Reg ID s, etc.) Interface testing & parallel run Filing transfer: make sure jurisdictions have information on where payments and filings are coming from 28

29 Polling Question #4 Requirements Log in from same address that you used to register Stay for the full hour Answer 3/5 polling questions How many professionals are currently engaged in filing your sales and use tax returns? A. 1 B. 2 C. 3-5 D E. More than 10 F. Not applicable 29

30 Benefits of Implementing an Automated Sales and Use Tax Solution 30

31 World Class Tax Calculation Save time Free up your tax professionals to control decisions and eliminate time-consuming compliance activities. Reduce risk Avoid mistakes, costly audits, and legal action. Get the right rate Stay up-to-date and stay compliant. Automate your tax calculation Integrate to your ERP system and make more accurate sales and use tax calculations. 31

32 Better/Smoother Sales Tax Process Controlled Process Flow ADP responsible for the accuracy of filings Sarbanes-Oxley compliant process Return reconciliation to source data Automated system transfers Return review by other than preparer Review for reasonableness Systematic tracking of manual adjustments 32

33 Efficient Filing of Your Tax Forms Forms Filing Timely returns and reports processing Forms updated monthly or as needed. All forms research is in-house. Up to date tracking electronic forms, EDI, webfile responsibilities Frees tax and accounting staff to focus on key business initiatives 33

34 On-time Payments, Improved Notice Handling Payments Timely payments Automated Clearing House (ACH) or check, reduced risk of penalties and interest Completely automated processing through ADP - moving over $1 trillion dollars per year. Comprehensive management of liabilities no worry that something has not been paid Notice Handling Timely responses and resolution reduces audit risk and internal backlog of issues. Leveraging ADP s research department if necessary seamless to client. 34

35 End-to-End Management of the Sales Tax Process Time spent on compliance tasks reduced from 70-80% to just 10-15% Allows you to focus on strategic business initiatives Changes in the business Growth Mergers & Acquisitions Tax planning / reverse audits Staff development and growth Penalty and interest savings An automated process that you no longer have to worry about Proactive rather than reactive approach to taxes Scalable solution less concern about staff turnover Penalty and interest will likely be reduced Consistent timely and accurate filings reduced audit exposure and risk 35

36 Why Use the ADP Sales Tax Service? We take care of your sales tax compliance so you can take care of business. 36

37 Polling Question #5 Requirements Log in from same address that you used to register Stay for the full hour Answer 3/5 polling questions How much time are you spending on sales and use tax compliance each month? A. Less than 1 day B. 1 2 days C. 3 4 days D. Not applicable 37

38 Tax Discussion 38

39 Tax Discussion Sales Tax Compliance in a Complex World Tax compliance is costly and cumbersome, a drain on the bottom line over $102.5B* * The cost of Tax Compliance, Scott Moody, Sr. Economist, Tax Foundation,

40 Support: Ensuring Your Success Client Account Representatives (CAR) Group Serve as point-of-contact for non-technical issues Provide licensing information Provide general support Technical Support Group Troubleshooting Software installation questions Upgrade support File replacement Documentation assistance Integration assistance 40

41 Support: Ensuring Your Success Tax Research Group Research tax issues VeraZip location codes Jurisdictional processing Product Codes Research changing tax laws Support Organization Included in license price 8:30AM to 8:00PM EST Optional 24/7 coverage Customer assigns level of severity of issue 41

42 Final CPE Question Requirements Log in from same address that you used to register Stay for the full hour Answer 3/5 polling questions Were program materials relevant and did they contribute to the achievement of the learning objectives? A. Yes B. No C. Not applicable 42

43 Question & Answer Segment 43

44 Questions & Answers Matthew S. Walsh Director, Tax Research ADP Tim Walsh Senior Director of Product Management ADP Annette Kovamees Director of Tax Compliance ADP 44

45 Upcoming Webinars Wednesday, March 25, 12-1pm EDT: Sales and Use Tax Solutions for SAP Users Wednesday, April 8, 12-1pm EDT: Surviving a Down Economy: How Sales Tax Automation and Business Incentives Can Help Thursday, April 9, 2-3pm EDT: ADP's Payroll Tax Service Compliance Successes - A PeopleSoft Case Study adp.com tools & resources events webinars 45

46 Upcoming Seminars Wednesday, March 11, Houston The Challenge of Corporate Tax Compliance: How Global Companies are Gaining Strategic Advantage by Applying Advanced Technology to Corporate Transaction Taxes Free admission to the Houston Rodeo following the seminar adp.com tools & resources events seminars 46

47 Upcoming Trade Shows March 9-11 Prepaid Conference Orlando March Microsoft Convergence New Orleans March SAP HR & SAP Financials Las Vegas adp.com tools & resources events trade shows 47

48 Don t Forget to Take Our Survey Immediately following, we ll be opening a window for a brief online survey. Please spend 5 minutes completing the survey and sharing your thoughts with us One person who completes the survey will be randomly drawn to win an ADP TotalPay Debit Card, preloaded with $100 and good anywhere Visa is accepted. For more information on the TotalPay Card and other ADP Payment Solutions, visit us on the web at adp.com 48