sales and use tax solutions for businesses with less than
TRANSCRIPT
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March 4, 2009, 12-1pm EST
Sales and Use Tax Solutions for Businesses with Less Than 1000 Employees
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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
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CPE Credit
RequirementsLog in from same e-mail address that you used to registerStay for the full hourAnswer 3/5 polling questions
A. YesB. NoC. Not applicable
Are you applying for CPEcredit for today’s webinar?
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Today’s Speakers
Annette KovameesDirector of Tax
ComplianceADP
Tim Walsh Senior Director of
Product ManagementADP
Matthew S. WalshDirector, Tax Research
ADP
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AgendaADP’s Capabilities in the Sales and Use Tax marketAvailable Solutions
Sales and Use Tax SystemADP Sales Tax Service
Implementing an Automated Solution: What to ExpectBenefits of Using an Automated SolutionTax discussionQuestions & Answers
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ADP’s Capabilities in the Sales and Use Tax Market
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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 in-house 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)
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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 industriesCentralized data update process
Update information letter provided with each summarizing changesSpecial Tax Rules
• Tax Type Determination• Tax Holidays• Special Tax Zones
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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• InforAnd many more!
Turn sales tax compliance into one of your company’s strength
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Polling Question #1
RequirementsLog in from same e-mail address that you used to registerStay for the full hourAnswer 3/5 polling questions
A. Manual methodsB. Mixed process: some
manual, some softwareC. Third party software (ADP,
Sabrix, Vertex, etc.)D. Hosted solutionE. Home grown solutionF. OtherG. Not applicable
Today, what is your process for managing your sales and use taxes?
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Sales and Use Tax System
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Calculates taxes for sales, purchases and rentalsManages jurisdiction and calculation processing for 13,000 sales tax jurisdictions in U.S. and Canada Includes exemptions, special rates, caps and thresholdsRecords tax results in Audit File for later reportingIncludes comprehensive Product Taxability Matrix (over 3,000 classifications)POS solution for many customers
Sales and Use Tax SystemDomestic tax engine for the U.S. and Canada
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Sales and Use Tax SystemDomestic tax engine for the U.S. and Canada
Includes STEP system for exemption certificate management Includes VeraZip® for determining taxing jurisdictionsOptional GeoTAX module from Pitney Bowes Business Insight provides GPS-based rooftop accuracyAddresses tax compliance for purchases with consumer’s use tax capabilitiesAllows for tax decisions by vendor, business location, product, service, cost center, or project
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Standard Reports
ADP Sales and Use Tax System
VeraZip:Determine
Tax Jurisdiction
Audit FileERP, Finance or
Accounting Application
STEP:Sales Tax
Exemption Processing
Returns
Nexus Requirements
Tax Rates/Rules
ProductTaxability
Matrix
Sales and Use Tax System Overview
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Polling Question #2
RequirementsLog in from same e-mail address that you used to registerStay for the full hourAnswer 3/5 polling questions
A. SAPB. OracleC. PeopleSoftD. JD EdwardsE. Great PlainsF. LawsonG. InforH. SageI. OtherJ. Not applicable
Which ERP or accounting software are you currently using in your business?
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ADP Sales Tax Service
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ADP Sales Tax Service
Compliance SolutionHosted by ADPBased 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 noticesLiability for the timing and accuracy shifts to ADPBased on a solid foundation: ADP has 60 years of tax filing and remittance experience – more than any other U.S. company
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Overview: ADP Sales Tax Service
ERP, Finance or Accounting Application
CLIENT
State and Local Jurisdictions
NOTICEHANDLING
SFTP PaymentProcessing
ReturnPreparation and Filing
Audit FileTax Engine
ADP
Standard Reports
Standard Reports
Tax Return Copies& Reporting to
Client
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Monthly Calendar Used for the ADP Sales Tax Service
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Process Used by the ADP Sales Tax Service
ADP executes payments on behalf of client and files returns as required (Web, EDI, Paper)
Due Dates
Funds transfer (Wire, ACH Credit)
Business Day 10-15
Returns and reports available for download. Debit notice sent tocustomer - (S/U Liability)
Business Day 8-10
ADP prepares returns and reconciles source data to returns
Business Day 5-8
Customer transmits data – via secure FTP as soon as books are closed (AR/AP)
Business Day 1-4
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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
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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.
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ADP Sales Tax ServiceTax Return Preparation, Filing and Payment
ObtainPre-payment
info
Enter Pre-PaymentInformation
Enter tax dataon forms
PrepareCheck
Request
Approve Voucher
Print Check/Generate
ACH
CollateChecks & returns
Mail Returns
Web File/EDI file
Review &Approval
Run ReportsFrom Tax
Engine
Run Reports/Extract Data
fromERP system/s
Calculate self-
assessed tax
Get Data from Remote
Locations(Stores, BU’s etc.)
Reconcile to G/L
Consolidate toFiling
Spreadsheet
Enter Bad Debt
InfoObtain
Bad Debt info Hold Credits/
Negative Amts
Enter Voucher(AP)
CalculateDiscounts
Review &Approval
Execute ACH(Treasury)
ArchiveBack up
Track CreditsNegative Returns
Notice Handling
P & IAbatementRequests
ManageThresholds &
Due Dates
(Print Returns)
PrepareFor Filing
GetTax Data
PrepareReturns
ProcessPayment
Disburse &File Returns
ProblemResolution
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ADP Sales Tax Service: Web Interface
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Polling Question #3
RequirementsLog in from same e-mail address that you used to registerStay for the full hourAnswer 3/5 polling questions
A. 0-10B. 11-25C. 26-50D. 50+E. Not applicable
How many sale and use tax returns are you preparing each month?
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Implementing an Automated Sales and Use Tax Solution
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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.
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Allow 30-90 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
What to Expect
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Polling Question #4
RequirementsLog in from same e-mail address that you used to registerStay for the full hourAnswer 3/5 polling questions
A. 1B. 2C. 3-5D. 6-10E. More than 10F. Not applicable
How many professionals are currently engaged in filing your sales and use tax returns?
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Benefits of Implementing an Automated Sales and Use Tax Solution
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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.
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•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
Better/Smoother Sales Tax Process
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•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
Efficient Filing of Your Tax Forms
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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.
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End-to-End Management of the Sales Tax Process
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
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 savingsAn automated process that you no longer have to worry about
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Why Use the ADP Sales Tax Service?
We take care of your sales tax compliance so you can take care
of business.
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Polling Question #5
RequirementsLog in from same e-mail address that you used to registerStay for the full hourAnswer 3/5 polling questions
A. Less than 1 dayB. 1 – 2 daysC. 3 – 4 daysD. Not applicable
How much time are you spending on sales and use tax compliance each month?
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Tax Discussion
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Tax DiscussionSales 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, 2002
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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
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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
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Final CPE Question
RequirementsLog in from same e-mail address that you used to registerStay for the full hourAnswer 3/5 polling questions
A. YesB. NoC. Not applicable
Were program materials relevant and did they contribute to the achievement of the learning objectives?
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Question & Answer Segment
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Questions & Answers
Annette KovameesDirector of Tax
ComplianceADP
Tim Walsh Senior Director of
Product ManagementADP
Matthew S. WalshDirector, Tax Research
ADP
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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
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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
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Upcoming Trade Shows
March 9-11 Prepaid Conference Orlando
March 10-13 Microsoft Convergence New Orleans
March 17-20 SAP HR & SAP Financials Las Vegas
adp.com | tools & resources | events | trade shows
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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