Sales and Use Tax Solutions for Businesses with Less Than

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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


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


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


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


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


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


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

Documents

Sales and Use Tax Solutions for Businesses with Less Than