Automatic Data Processing, Inc. · NASDAQ:ADP

Automatic Data Processing — ADP SUT Webinar (September 2012)

34 slides from Automatic Data Processing's conference presentation, September 2012

1. Slide 1: Get Ready to Comply With the Marketplace Fairness & Marketplace Equity Acts

   Get Ready to Comply With the Marketplace Fairness & Marketplace Equity Acts September 2012 1 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information. The content may not be reproduced or repurposed without written permission from ADP.

2. Slide 2: Housekeeping

   Housekeeping ƒ This is one of a number of complimentary webinars that ADP offers to Finance and HR professionals each year ƒ Today’s webinar will last for 60 minutes, ending at 1:00 p.m. (ET) ƒ The last 10 minutes of today’s program have been reserved for Q&A ƒ A PDF copy of today’s slides for downl

3. Slide 3: CPE Credit

   CPE Credit ƒ Are you planning to apply for CPE credits for attending today’s webinar? A. Yes, 1 CPE Credit B. No NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements for receiving CPE and/or RCH Credit: •Log in from same e-mail address that

4. Slide 4: About ADP

   About ADP Over 600,000 clients worldwide Pays 1 out of 6 in the U.S. private sector - 33M worldwide Founded in 1949 Went public in 1961 45,000 Associates ƒ Revenues of approximately $10 Billion In 60+ Countries ƒ Market capitalization of >$23 Billion 1 of 4 AAA Rated U.S. Industrial Companies Electr

5. Slide 5: Presenters

   Presenters Charles Collins Matthew Walsh ADP ADP VP Government Affairs Sr. Director, Operations 5 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information. The content may not be reproduced or repurposed without written permission from ADP.

6. Slide 6: Polling Question #1

   Polling Question #1 ƒ Are you following potential Federal Legislation on remote commerce? A. Yes B. No C. Not Applicable NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements for receiving CPE and/or RCH Credit: •Log in from same e-mail addr

7. Slide 7: Agenda

   Agenda Marketplace Fairness & Marketplace Equity Acts ƒ What the acts would do? ƒ Why states and local need Congress help? ƒ What is covered by the acts? ƒ Review major provisions Compliance Issues for Remote Sellers Product Taxability and Filing Requirements Compliance Solutions Action Items Questi

8. Slide 8: What are the Marketplace Fairness and Marketplace Equity Acts?

   Marketplace Fairness and Marketplace Equity Acts What are the Marketplace Fairness and Marketplace Equity Acts? ƒ Congressional legislation providing states authority to collect sales and use taxes on remote transactions – Marketplace Fairness Act: “To restore States’ sovereign rights to enforce Sta

9. Slide 9: Marketplace Fairness Act – S. 1832

   Marketplace Fairness and Marketplace Equity Acts What are the Marketplace Fairness and Marketplace Equity Acts? ƒ Marketplace Fairness Act – S. 1832 – Sense of Congress: “It is the sense of Congress that States should have the ability to enforce their existing sales and use tax laws and to treat sim

10. Slide 10: Why do State and local jurisdictions need Congressional legislation?

    Marketplace Fairness and Marketplace Equity Acts Why do State and local jurisdictions need Congressional legislation to enforce State and local sales and use tax laws? ƒ Limited authority over remote sellers ƒ Congressional ability to regulate interstate commerce ƒ To enforce existing laws and to tr

11. Slide 11: What remote transactions are covered by the bills?

    Marketplace Fairness and Marketplace Equity Acts What remote transactions are covered by the bills? ƒ All forms of remote commerce are included ƒ Not just e-commerce transactions ƒ Transactions covered can occur – Over the Internet – By Mail order – Through a Call center – By TV shopping – In a stor

12. Slide 12: Polling Question #2

    Polling Question #2 ƒ Is your company a remote seller or a brick and mortar seller? A. Remote seller B. Brick & mortar seller C. Other D. Not Applicable NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements for receiving CPE and/or RCH Credi

13. Slide 13: History of Legislation

    Marketplace Fairness and Marketplace Equity Acts History of Legislation ƒ Remote commerce legislation in previous sessions Remote Commerce Bills ƒ Durbin/Conyers – S. 1452 / H.R. 2701 – Main Street Fairness Act (MSFA): States comply with SST to gain collection authority ƒ Womack/Speier – H.R. 3179 –

14. Slide 14: Main Street Fairness Act (MSFA) – S. 1452 / H.R. 2701

    Marketplace Fairness and Marketplace Equity Acts Main Street Fairness Act (MSFA) – S. 1452 / H.R. 2701 ƒ Sponsors: Senator Richard Durbin, IL & Representative John Conyers, MI ƒ Requires compliance with Streamlined Sales Tax Agreement for collection authority ƒ Provides for a small seller threshold

15. Slide 15: Marketplace Equity Act (MEA) – H.R. 3179

    Marketplace Fairness and Marketplace Equity Acts Marketplace Equity Act (MEA) – H.R. 3179 ƒ Sponsors are Representative Steve Womack, AR, and Representative Jackie Speier, CA ƒ Compliance with SST Agreement is not required ƒ Provisions to gain compliance contained in Act ƒ Effective 1st of quarter s

16. Slide 16: Marketplace Equity Act (MEA) – H.R. 3179 provisions

    Marketplace Fairness and Marketplace Equity Acts Marketplace Equity Act (MEA) – H.R. 3179 ƒ Specific list of provisions to gain authority – Identical State and local tax base – States must choose one of following for remote sales ƒ Single State-wide blended rate (State and local) ƒ Maximum State rat

17. Slide 17: Marketplace Fairness Act (MFA) – S. 1832

    Marketplace Fairness and Marketplace Equity Acts Marketplace Fairness Act (MFA) – S. 1832 ƒ Sponsors are Senators Mike Enzi, WY; Richard Durbin, IL & Lamar Alexander, TN ƒ States’ rights bill ƒ States have two paths to gain collection authority – Effective date for States depends upon path ƒ Small s

18. Slide 18: Marketplace Fairness Act (MFA) – S. 1832 paths

    Marketplace Fairness and Marketplace Equity Acts Marketplace Fairness Act (MFA) – S. 1832 ƒ States have two paths to gain collection authority – Comply with Streamlined Sales Tax Agreement (1st day of quarter at least 90 days after passage of Act) – Pass specific list of simplification provisions (1

19. Slide 19: Discussion of specific provisions

    Marketplace Fairness and Marketplace Equity Acts Discussion of specific provisions ƒ Consolidated filing (MFA) – Allows eligible providers to file one return per jurisdiction for all sellers in lieu of separate return by jurisdiction per seller – Allows remote transactions to be reported separately

20. Slide 20: Discussion of specific provisions: software and services

    Marketplace Fairness and Marketplace Equity Acts Discussion of specific provisions ƒ Level of software and services states must provide – States to provide rates/jurisdictional database & product taxability matrix (Streamlined Sales Tax Agreement) – Remote sellers need databases combined for complia

21. Slide 21: Compliance issues for remote sellers

    Marketplace Fairness and Marketplace Equity Acts Compliance issues for remote sellers ƒ Do you have an accounting system that can handle tax calculation and compliance? ƒ Can your system handle calculations and compliance for all state and local tax jurisdictions? ƒ Will your system require modifica

22. Slide 22: Steps to help ensure compliance

    Marketplace Fairness and Marketplace Equity Acts Steps to help ensure compliance ƒ Take some time now to review: – Current tax collection obligations ƒ Where are you currently filing? ƒ Where should you be currently filing? – Revenue projections – Your systems ƒ Shopping cart/order entry ƒ Tax calcu

23. Slide 23: Taxability considerations

    Marketplace Fairness and Marketplace Equity Acts Taxability considerations: ƒ Sales tax is more than just rates: – Sales tax rates are numerous and change frequently, but that is not the only aspect to consider. – Products: ƒ Products and services can have special taxability rules – What are you sel

24. Slide 24: Product taxability

    Marketplace Fairness and Marketplace Equity Acts Product taxability: ƒ Many items are provided with special tax treatment across the U.S. ƒ Full exemptions, partial exemptions or thresholds ƒ Common areas for special treatment: – Clothing – Medical related items (drugs and equipment) – Publications

25. Slide 25: Purchaser taxability

    Marketplace Fairness and Marketplace Equity Acts Purchaser taxability: ƒ Do you sell to only taxable persons or do you also sell to those with special tax status? ƒ Many types of purchasers have tax exemptions across the U.S. – Non-profits – Manufacturers – Resellers ƒ How do you currently handle sa

26. Slide 26: Other tax calculation and compliance considerations

    Marketplace Fairness and Marketplace Equity Acts Other tax calculation and compliance considerations: ƒ Discounts ƒ Shipping charges ƒ Back orders or delayed shipments ƒ Returns ƒ Deployment of the calculation system (premise or hosted) ƒ Maintenance of required data for audit support 26 © Copyright

27. Slide 27: Polling Question #3

    Polling Question #3 ƒ If you are a remote seller are you currently collecting tax in more than 10 states? A. Yes B. No C. Not Applicable NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements for receiving CPE and/or RCH Credit: •Log in from

28. Slide 28: Filing and remitting the taxes collected

    Marketplace Fairness and Marketplace Equity Acts Filing and remitting the taxes collected: ƒ What is your current system for filing and paying? – In-house – Third party provider/accounting firm ƒ Will your current method be able to support your operations for filing in more jurisdictions? ƒ Will you

29. Slide 29: Action items

    Marketplace Fairness and Marketplace Equity Acts ƒ Action items: – Review your systems ƒ Sales order ƒ Tax calculation (if applicable) – Review your product line – Review your customers – Review your filings ƒ Make sure your sales order system can handle the needed information ƒ Ensure your tax calc

30. Slide 30: Question

    Question ƒ Are you a current ADP client? A. Yes, I am a current ADP client. B. No, I am not a current ADP client. C. I am an ADP employee. NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements for receiving CPE and/or RCH Credit: •Log in fro

31. Slide 31: Q&A

    Q&A 31 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information. The content may not be reproduced or repurposed without written permission from ADP.

32. Slide 32: Thank You for Joining Us Today

    Thank You for Joining Us Today ƒ For information on any of the ADP products or services referenced during today’s webinar: – Call us at 800-CALL-ADP or visit www.adp.com ƒ For a complete listing of ADP webinars and webinar recordings, go to: – adp.com | tools & resources | events | webinars 32 © Cop

33. Slide 33: Please Tell Us How We're Doing

    Please Tell Us How We’re Doing Your input will be used to improve and plan future webinars The information and materials provided in this webinar are for informational purposes only and not for the purpose of providing accounting, legal or tax advice. Such information is by nature subject to revisio

34. Slide 34: Thank You for Attending

    Thank You for Attending

Automatic Data Processing — ADP SUT Webinar (September 2012) on 6ix