ADP Sales Tax Service
When it comes to sales and use taxes, businesses are faced with a number of significant challenges:
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Keeping track of thousands of ever-changing tax rates;
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Calculating sales and use taxes corrrectly based on product categories and where products are being bought and sold;
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Completing tax forms; and
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Paying taxes on time every time.
Now there’s a better way.
Automate the entire sales tax function – from calculation of sales and use taxes and forms completion to the actual transfer of funds to various state and local revenue departments. Introducing the ADP Sales Tax Service. With this new service offering, ADP gives you the opportunity to outsource another business process, freeing your tax and finance people to focus on higher level functions and make more concrete contributions that will aid your company’s growth and success. The ADP Sales Tax Service takes the tedious and time-consuming process of sales tax compliance and turns it into a fully automated solution.
New Definition of a Tax Solution
With this new offering, ADP performs end-to-end automation of the sales tax compliance process, reducing exposure to tax liability and compliance costs. Specifically, ADP offers full automation of tax calculations, tax filings, and tax payments, and back-office services supporting the entire process. The solution operates as follows:
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Tax calculation is done using an ADP Tax Engine: the Sales and Use Tax System or Taxware Enterprise
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Data from the calculation system is automatically placed on government-approved tax forms using the ADP Returns Engine
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Custody of tax funds is transferred to ADP; monies are securely remitted to over 12,000 state and local governments nationwide using the ADP Money Movement Engine.
Removes Burden of Tax Compliance
The ADP Sales Tax Service is a fresh, new approach to a challenge that businesses have been grappling with for decades. It provides a long list of benefits, including:
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A defensible audit trail
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Up-to-date compliance with tax rule changes, reflecting the most recent laws and regulations
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Automatic tax filings and automated clearing house (ACH) payments, ensuring on-time compliance and avoiding penalties and interest due from late filing
Product Taxability Matrix
Included in this service is a comprehensive Product Taxability Matrix, a proprietary database containing rules for thousands of unique, real world situations, including full and partial exemptions,special rates, caps and thresholds. It also contains more than 2,000 product and service classifications, as well as all U.S. and Canadian sales and use taxes, to ensure the most accurate tax payments.You can easily map your company’s products to the matrix and add customized product codes unique to your business. Of particular value to retail customers, the rules database handles to a variety of retail-specific situations, including:
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Bracket taxing
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Coupons and refunds
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Enhanced jurisdiction verification
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Delivery charge taxability
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Delivery method taxability
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Mapping of Stock Keeping Units (SKU's) to applicable tax rules and rates
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Monthly rate updates
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Rental taxes
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Tax holidays
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Tax returns
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Urban enterprise zones
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White goods fees
Benefits of Using the ADP Sales Tax Service
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Use a tax engine that you know and trust – Taxware Enterprise or the Sales & UseTax System– as the front end
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Reduce the total cost of compliance and mitigate risk
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Forecast tax obligations with greater accuracy
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Create defensible audit trails for compliance with Sarbanes-Oxley section 404
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Reduce the scope of audits
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Help avoid costly tax penalties
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Take advantage of tax compliance research in all US and Canadian jurisdictions
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Facilitate tax planning and transaction modeling for more informed decision making
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Integrate seamlessly with existing ERP,financial, and CRM applications
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Copy and share rules between business units
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Support a high degree of customization in tax jurisdictions, geocodes, goods/service codes, entity/use codes, and associated tax rules
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Forms Filing – Timely returns and reports processing
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Forms updated monthly or as needed
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All forms research is in house
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Up to date tracking of electronic forms, Electronic Data Interchange (EDI), Webfile responsibilities
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Frees tax and accounting staff to focus on key business initiatives
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Timely Payments – Automated Clearing House (ACH) or check, reduced risk of penalties and interest
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Completely automated processing through ADP Money Movement Services
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Comprehensive management of liabilities – no worry that something has not been paid
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Notice Handling
Interested in learning more? Contact us or call at 1-800-CALL-ADP.