Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — Tame the Beast, Remove the Burden, Simplify the Sales and Use Tax Returns Filing Process ( (April 2011)
36 slides from Automatic Data Processing's conference presentation, Apr 5, 2011
Slide 1: Tame the Beast, Remove the Burden, Simplify the Sales and Use Tax Returns Filing Process
Tame the Beast, Remove the Burden, Simplify the Sales and Use Tax Returns Filing Process An ADP Webcast Tuesday, April 5 Noon – 1:00pm - EST 1 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 2: Housekeeping Items
Housekeeping Items This is one of a number of complimentary webinars that ADP offers to tax and finance professionals each year. 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 Q&A. You can download a PDF cop
Slide 3: CPE Credit
CPE Credit Are you planning to apply for CPE credit for attending today’s webinar? A.Yes B.No C.Not Applicable NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: •Log in from same e-mail address that you used to register •Stay for the full hour •Answ
Slide 4: About ADP
About ADP Experts in Automating Corporate Business Processes Listed on NASDAQ: ADP Fortune 300 company Experts in automating business processes such as payroll, benefits administration, procure-to-pay, sales tax automation and tax credits so that organizations can stay focused on the core busi
Slide 5: Agenda
Agenda Introductions Challenges of Tax Compliance Case Study: Talaris ADP Outsourced Returns Implementation Question and Answers Conclusion 5 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 6: Today's Panel
Today’s Panel Mark Grupp John Sallese North American Tax Manager Director Sales Tax Services Talaris ADP, Inc. 6 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 7: The Burden of Tax Compliance
The Burden of Tax Compliance 7 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 8: Polling Question #1
Polling Question #1 How much did your company pay out last year in penalty and interest payments? A.0/year B.Under $10,000/year C.Between $10,000 and $20,000/year D.Over $20,000/year E.Don’t know NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: •Lo
Slide 9: Burden of Tax Compliance - Aspect 1: All the Things that Change
Burden of Tax Compliance - Aspect 1: All the Things that Change Tax rules change, and they change often: • 1,400* Rate changes in 2010 • 1,417,057* law changes and additions in 2010 • 387* form changes in 2010 * According to ADP’s Tax Console’s, internal Tax Research Group 9 ©2011 Automatic Data P
Slide 10: Burden of Compliance - Aspect 2: All the Things You Need to Do
Burden of Compliance - Aspect 2: All the Things You Need to Do Get Prepare Prepare Process Disburse & Problem Tax Data For Filing Returns Payment File Returns Resolution Run Reports Consolidate to Enter tax data Prepare Collate Manage From Tax Filing on forms Check Checks Thresholds & Engine Spreads
Slide 11: Challenges Beyond Tax Calculation - Aspect 3: All the Things that Keep You Up at Night
Challenges Beyond Tax Calculation - Aspect 3: All theThings that Keep You Up at Night Mergers/acquisitions and business growth adds to compliance workload Internal review more stringent and time consuming Struggling with state and local jurisdictions Running into penalties and fees Sales t
Slide 12: How Do Companies Currently Handle It?
How Do Companies Currently Handle It? How do companies currently handle it? 12 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 13: How Are Companies Currently Handling Compliance?
How Are Companies 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 provi
Slide 14: Polling Question #2
Polling Question #2 How are you currently preparing your sales and use tax returns? A.Manually (spreadsheets and online) B.Forms software C.Outsourced service D.Other E.Don’t know NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: •Log in from same e
Slide 15: How Do You Domesticate the Burden of Compliance?
How Do You Domesticate the Burden of Compliance? Use a single service provider for all aspects of your outsourced returns service: • Implementation and setup of service • Returns management • Fund management and payments • Notice management with timely responses A service provider with the exper
Slide 16: Case Study: So How Does Talaris Do This?
Case Study: So How Does Talaris Do This? 16 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 17: Deciding to Outsource Returns
Deciding to Outsource 222 Returns Vendor Payment Rounding Files Requests Errors Tax Account Cash Reconciliation Account Notices Payment Request Signatures Data Entry Errors EFT Log Taming the Beast 17 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 18: Results of Outsourcing
Results of Outsourcing No Payment One Requests Vendor Six Cash Transactions No Rounding Errors No A/P Input Errors Easy Tax Account Rec. No Payment Requests Sales Taxes Domesticated 18 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 19: Implementation Issues
Implementation Issues How are my people going to be affected? Who is going to do what? What about annual return data? How do payments get booked? What about SOX? How does testing work? How does ADP get the information every month? How long will this take? Will my system work with A
Slide 20: Choose the Right Partner - ADP
Choose the Right Partner - ADP How do companies currently handle it? 20 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 21: ADP Sales Tax Service - Overview
ADP Sales Tax Service - Overview 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 juris
Slide 22: Polling Question #3
Polling Question #3 How many sales and use tax returns are you preparing each month? A.0 – 10 B.11 - 25 C.26 – 50 D. 50+ E.Not Applicable NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: •Log in from same e-mail address that you used to register •S
Slide 23: Partnering with ADP - Making the Workflow Simple and Easy
Partnering with ADP - Making the Workflow Simple and Easy CLIENT ADP ERP, Finance or State and Local Accounting Application Jurisdictions NOTICE HANDLING Return Payment Tax Engine Audit File SFTP Preparation Processing and Filing Standard Standard Tax Return Copies Reports Reports & Reporting to Cli
Slide 24: How Can ADP Remove the Burden?
How Can ADP Remove the Burden? g ortin e p /Rep r rn P Retu l oad s ce own Noti lc D Debit Ca rns & /Tax Retu orts i ssion & s m Re p P ay Tran File Data t i ng epor r ep/R rn P AD P Re t u s f er to ey T ra n & M on P ay File & P ay File ADP Sales Tax Service: Calendar / Processing Schedule 24 ©201
Slide 25: Your Returns Process Simplified with ADP
Your Returns Process Simplified with ADP 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 custo
Slide 26: We Also Handle "Exceptions" for You
We Also Handle “Exceptions” for You 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 A
Slide 27: Polling Question #4
Polling Question #4 How many agency notices do you receive on average from state and local governments? A.0 to 5 /month B.6 to 10 /month C.Over 10 /month D.Don’t know NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: •Log in from same e-mail address
Slide 28: How We Help You Reconcile - Reporting
How We Help You Reconcile - 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,
Slide 29: One Centralized Location to Store Filing Information – Web Interface
One Centralized Location to Store Filing Information – Web Interface 29 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 30: One Place to "Go To" for Implementation Assistance
One Place to “Go To” for Implementation Assistance ADP assigned a project manager and team at beginning of implementation • Professional project plan, status calls, notes, issue resolution • Last thing I needed was to be project manager on another project • Tax calendar, file formats, reporting ex
Slide 31: Sales Tax Service Implementation: The ADP Difference
Sales Tax Service Implementation: The ADP Difference ADP takes reasonability to make sure the implementation goes smoothly • Dedicated project manager to implementation • Fixed price to get it done No such thing as self-service implementation, when it comes to client data • Industry best expert
Slide 32: Implementation Process/Timelines
Implementation Process/Timelines Month 1 Requirements/design M T W T F S s • Gather required information about 1 2 3 4 5 6 7 customer 8 9 10 11 12 13 14 System configuration/setup 15 16 17 18 19 20 21 • ADP will configure and setup system to 22 23 24 25 26 27 28 process returns 29 30 Developme
Slide 33: Conquering Tax Compliance
Conquering Tax Compliance 33 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 34: Questions & Answers
Questions & Answers Mark Grupp John Sallese North American Tax Manager Director Sales Tax Services Talaris ADP, Inc. 34 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 35: Thank You for Joining Us Today…
Thank You for Joining Us Today… For information on any of the ADP products or services referenced during today’s webinar: • Phone 800-CALL-ADP or visit www.adp.com For a complete listing of ADP webinars and webinar recordings – go to: • adp.com | tools & resources | events | webinars Sales Taxes
Slide 36: Webinar Program Survey
Webinar Program Survey How are we doing? We appreciate your feedback on our webinar which will be used as we plan future webinars. 36 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.