Are you aware of the upcoming sales tax law changes and the implications of using accounting software that does not adequately support your business? Do you have confidence in the ability of your accounting software program to not only maintain your vital business information but also efficiently track the minute details of the new tax laws? Your ERP accounting software specializes in meeting your specific business needs while also protecting you from sales tax audit liabilities that can reduce your profits and efficiency. These systems are crucial to efficient management of all your data issues, especially in view of the Marketplace Fairness Act, Remote Transactions Parity Act of 2015, and Online Sales Simplification Act which are under debate in Congress.
Are you ready for these sales and use tax changes?
Marketplace Fairness Act (MFA)
If passed, the MFA will grant states authority to require non-exempt remote sellers to collect sales tax. While the MFA will not override current state and local tax statutes, it will allow states that are in accordance with the Streamlined Sales and Use Tax Agreement the ability to require remote sellers to collect and remit sales taxes. (2016 Sales Tax Changes, 2016). If the laws are passed, not all out-of-state businesses or sales transactions will be affected by the new laws. It is vital to have an efficient accounting software such as Sage 100 or Acumatica Cloud ERP to effectively keep track of the transactions that are subject to the new laws.
Remote Transactions Parity Act (RTPA)
The RTPA is similar to the MFA in that it will allow states that are in accordance with the Streamlined Sales and Use Tax Agreement to require remote sellers to collect and remit sales taxes; however, the RTPA is actually friendlier for smaller businesses in that it has minimum monetary qualifications that serve as guidelines for sales tax liabilities.
Online Sales Simplification Act (OSSA)
The OSSA does not provide for a small seller exception like the RTPA does. It does allow states to require businesses to collect sales taxes on interstate sales. The OSSA is complex and adds many layers of sales tax guidelines for remote sellers. One of the prominent features of this particular act is that the sales taxes on remote sales are origin-sourced. This means that the sales taxes would be based on the origin of the seller instead of the purchaser.
Under the OSSA “the lowest combined rate within any of the contiguous 48 States that do impose a sales tax would be determined and remote sellers located in states without sales tax would be required to collect a ‘flat tax’ on all remote sales.”
There are many specifics that go with the OSSA that will make life without an accurate, up-to-date accounting software such as Sage 100 or Acumatica Cloud ERP a nightmare for bookkeepers and accountants. Without the right software, much time will be spent keeping track of minute details of the new tax laws which could cost your business money that could be invested more effectively in other areas.
Keep up to date on sales and use tax changes with Sage accounting solutions
The three pending acts detailed here are only three of many reasons that make ERP accounting software so valuable. Automating the entire sales tax process from calculating and collecting to reporting and remitting is a simple and efficient way to reduce the sales tax hassle. Avalara tax solutions integrate seamlessly with Sage 100 to simplify sales and use tax requirements. This automation software is the most reliable way to accurately calculate, validate, and remit sales and use tax. It will help you avoid the landmines of sales tax audit liabilities. This automation software is the most reliable way to accurately calculate, validate, and remit sales and use tax. It will keep track of sales and use tax changes so that you can focus on other areas of your business.
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