ADP Sales Tax Service. January 14, pm EST

Transcription

1 ADP Sales Tax Service January 14, pm EST 1

2 Housekeeping Items Today s webinar will last for 60 minutes, ending at 1pm eastern time. The last 10 minutes of today s program have been reserved for questions & answers. We will launch a brief survey at the conclusion of today s webinar. Those who complete 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 for CPE Credit Log in from same address that you used to register Stay for the full hour Answer 4/6 polling questions Are you applying for CPE credit for today s webinar? A. Yes B. No C. Not applicable

4 Polling Question # 1 Requirements Log in from same address that you used to register Stay for the full hour Answer 4/6 polling questions How are you currently calculating sales and use taxes? A. Use in-house employees B. Use your ERP system s native tax capabilities C. Use third party tax engine (ADP, Vertex, Sabrix, etc.) D. Other E. Not applicable

5 Today s Speakers Annette Kovamees Director of Tax Compliance ADP Tim Walsh Sr. Director of Product Management ADP Matthew S. Walsh Director, Tax Research ADP 5

6 Agenda ADP Sales and Use Tax Calculation Beyond the Tax Engine: ADP Sales Tax Service Benefits of the ADP Sales Tax Service Question & Answer Segment 6

7 ADP NASDAQ: ADP Fortune 300 company Experts in automating back-office processes such as payroll, benefits administration, pre-employment services, and sales tax compliance so that organizations can stay focused on the core business 50+ years of experience Revenues over $8 Billion More than half a million clients worldwide AAA credit rating from both Moody s and Standard & Poor s Major player in the sales and use tax market since the acquisition of the former Taxware business in November,

8 ADP Sales and Use Tax Calculation 8

9 Sales & Use Tax Calculation Options Through its Taxware line of products, ADP is building on more than 30 years of experience in the sales and use tax market. ADP offers sales, use, and Value Added Tax (VAT) solutions Integrations available for Oracle PeopleSoft JD Edwards Siebel SAP Microsoft Dynamics GP Infor And more! Turn sales tax compliance into one of your company s strength 9

10 Sales and Use Tax System Domestic tax engine for the USA & Canada Scalable to accommodate multiple business models Precise taxing jurisdiction assignments Sales tax exemption processing (STEP) Includes a database of rules for thousands of situations, including full and partial exemptions, special rates, caps, and thresholds Includes a comprehensive Product Taxability Matrix that contains over 3,000 classifications of products and services Ability to map products to the Taxability Matrix and add customized product codes unique to your business Records tax calculation results in the Sales and Use Tax Solution Audit File for later reporting Detailed file for internal and external audits Resulting data may be fed into the ADP Sales Tax Service for automated tax returns and reporting 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 Superior Point of Sale (POS) functionality delivers both invoice and line-level processing required by retailers 10

11 About ADP s Tax Content Out-of-the-box standard product codes and use based exemptions. More standard content means less customization, less maintenance, and faster time to production. Special Tax Rules Tax Type Determination Tax Holidays Special Tax Zones Additional content is continually added to cover new tax rules and industries Centralized data update process 11

12 Tax Discussion Sales Tax Compliance in a Complex World Tax compliance is costly and cumbersome, a drain on the bottom line over $102.5B in 2002* * The cost of Tax Compliance, Scott Moody, Sr. Economist, Tax Foundation,

13 Tax Law Complexity Keeping up with tax law changes is time consuming 748 rate changes in the U.S. alone last year Changing tax rules for both product and purchaser Sales tax holidays Forms updates Most rate changes impact tax forms and need to be updated Some jurisdictions regularly change forms Tax authorities won t accept out-of-date forms 13

14 About ADP s Tax Research Capabilities Tax Expertise 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 - not outsourced or purchased 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) 14

15 ADP Tax Research Content update strictly controlled 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. Update information letter provided with each summarizing changes. 15

16 Polling Question # 2 Requirements Log in from same address that you used to register Stay for the full hour Answer 4/6 polling questions Describe your most recent audit experience: A. Smooth B. Moderate number of issues C. Painful D. Not applicable

17 Polling Question # 3 Requirements Log in from same address that you used to register Stay for the full hour Answer 4/6 polling questions How many sales and use tax returns are you preparing each month? A B C D. 50+ E. Not applicable

18 Beyond the Tax Engine: ADP Sales Tax Service 18

19 How Companies are Currently Handling Compliance Manual Reports and spreadsheets are manually consolidated to populate paper or web forms Compliance Software Software containing forms with more or less robust import features/abilities Third Party Services Utilizing external service provider to file forms and potentially remit payments 19

20 Challenges Beyond Tax Calculation 1. Mergers/acquisitions and business growth adds to compliance workload 2. Internal review more stringent and time consuming 3. Struggling with state and local jurisdictions 4. Running into penalties and fees 5. Sales tax department spending 70-80% of time on compliance Less time for strategic issues Less time for process improvements Less time for technology enhancements 20

21 Overview ADP Sales Tax Compliance Service Compliance Solution Hosted by ADP Based on your tax data, ADP will Create and file Sales and Use tax returns (Paper, EDI, Web) Make payments (EFT, Check) Handle all agency notices ADP handles the payment and filing of taxes to all state and local jurisdictions Liability for the timing and accuracy shifts to ADP ADP has 60 years of tax filing and remittance experience more than any other U.S. company 21

22 Process Diagram ADP Sales Tax Service CLIENT ERP, Finance or Accounting Application ADP State and Local Jurisdictions NOTICE HANDLING Tax Engine: Taxware Enterprise or Sales and Use Tax System Audit File SFTP Return Preparation and Filing Payment Processing Standard Reports Tax Return Copies & Reporting to Client 22

23 Step-by-Step Calendar ADP Sales Tax Service 23

24 High Level Process 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) 24

25 Exceptions ADP Sales Tax Service 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 25

26 Reporting ADP Sales Tax Service 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. 26

27 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 27

28 Web Interface ADP Sales Tax Service 28

29 Implementation 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 29

30 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: Our #1 priority is to have you up and running as quickly and as smoothly as possible, while providing full technical and service related support. 30

31 Polling Question # 4 Requirements Log in from same address that you used to register Stay for the full hour Answer 4/6 polling questions How are you handling your sales and use tax returns today? A. Use in-house employees B. Use third party preparers (consultants) in-house C. Using an outsourced solution D. Other E. Not applicable 31

32 Polling Question # 5 Requirements Log in from same address that you used to register Stay for the full hour Answer 4/6 polling questions How many sources (tax engine, ERP system, spreadsheets, etc.) make up your sales and use tax returns? A. 1 B. 2-5 C. 6-9 D. More than 10 E. Not applicable 32

33 Benefits of the ADP Sales Tax Service 33

34 Benefits of Compliance Time spent on compliance tasks reduced from 70-80% to just 10-15% Time can be focused on strategic initiatives Frees up time to stay ahead of business changes / growth/ M&A rather than react to change Tax planning / reverse audits Staff development and growth Penalty and interest savings Automated process 34

35 Benefits 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. 35

36 Benefits Better/Smoother Sales Tax Process Controlled Process Flow ADP responsible for the accuracy of the filings SOX compliant process Return reconciliation to source data Automated system transfers Return review by other than preparer Review for reasonableness Systematic tracking of manual adjustments Forms Filing Timely returns and reports processing Forms updated monthly or as needed. All forms research is inhouse. Up to date tracking electronic forms, EDI, webfile responsibilities Frees tax and accounting staff to focus on key business initiatives 36

37 Benefits 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. 37

38 Benefits End-to-End Management of the Sales Tax Process More time to spend on key business and strategic initiatives Staying ahead of the curve 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 38

39 Why Use the ADP Sales Tax Service? We take care of your sales tax compliance so you can take care of business. 39

40 Polling Question # 6 Requirements Log in from same address that you used to register Stay for the full hour Answer 4/6 polling questions How many professionals are currently engaged in filing your sales and use tax returns? A. 1 B. 2 C. More than 2 D. Other E. Not applicable 40

41 Final CPE Question Requirements Log in from same address that you used to register Stay for the full hour Answer 4/6 polling questions Were program materials relevant and did they contribute to the achievement of the learning objectives? A. Yes B. No C. Not applicable 41

42 Question & Answer Segment 42

43 Questions & Answers Annette Kovamees Director of Tax Compliance ADP Tim Walsh Sr. Director of Product Management ADP Matthew S. Walsh Director, Tax Research ADP 43

44 Our Next Webinar ADP Sales Tax Solution at Siemens: A Case Study Wednesday, January 21, 12:00pm 1:00pm Information and on-line registration: ADP.com Tools & Resources Events Webinars Sales and Use Tax Webinars 44