Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — ADP Webcast: Cornell Storefront Systems and Sales and Use Tax compliance (October 2011)
47 slides from Automatic Data Processing's conference presentation, Oct 26, 2011
Slide 1: Learn how Cornell Storefront Systems leverages their ERP for Sales and Use Tax
Learn how Cornell Storefront Systems® leverages their ERP to remain compliant with ever- changing Sales and Use Taxes! An ADP ® Webcast Wednesday, October 26, 2011 12 PM Eastern This webinar is an independent webinar and is not affiliated with, nor has it been authorized, sponsored, or otherwise app
Slide 2: Housekeeping
Housekeeping This is one of a number of complimentary webinars that ADP offers to finance and HR professionals each year. Today’s webinar will last for 60 minutes, ending at 1 pm Eastern. The last 10 minutes of today’s program have been reserved for Q&A. A PDF copy of today’s slides is avail
Slide 3: About ADP
About ADP Over 570,000 clients worldwide Pays 1 out of 6 in the U.S. 33M worldwide Founded in 1949 Went public in 1961 45,000 Associates Revenues of approximately $10 Billion In 60+ Countries 1 of 4 AAA Rated U.S. Industrial Companies Electronically ‘moving’ (by Standard & Poor’s & Moody’s) $1 Tri
Slide 4: Credit
Credit Are you planning to apply for CPE and/or RCH credits for attending today’s webinar? A. CPE Credit Only D. No B. RCH Credit Only E. Not Applicable C. Both CPE & RCH Credits NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements for re
Slide 5: Today's Panel
Today’s Panel Dan Broda John Sallese Cornell Storefront Systems ADP, Inc. 5
Slide 6: Agenda
Agenda Introductions Challenges of Tax Compliance Case Study: Cornell Calculating Taxes with Microsoft Dynamics® ADP Outsourced Returns Implementation Questions and Answers Conclusion 6 6
Slide 7: Polling Question #1
Polling Question #1 Which of the Microsoft Dynamics suite is your company currently using or considering? A. GP D. AX B. Navison (NAV) E. Not Applicable/Don’t know C. Solomon (SL) NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements for r
Slide 8: Challenges of Tax Compliance
Challenges of Tax Compliance 8 © 2011 ADP, Inc.
Slide 9: Challenges of Tax Compliance
Challenges of Tax Compliance State AND local governments are always looking for more ways to raise money – There are simply a lot of tax rates to keep track of in the US – State sale and use tax rates can be minor compared to the County / City / District Taxes you may be subject to – Almost three-
Slide 10: Challenges of Tax Compliance
Challenges of Tax Compliance Tax rules change, and they change often: – 1,400* Rate changes in 2010 – 1,417,057* rule updates and additions in 2010 – 387* form changes in 2010 * According to ADP’s indirect tax research team 10 © 2011 ADP, Inc.
Slide 11: Challenges of Tax Compliance: Recent Tax Law Changes
Challenges of Tax Compliance Tax Research Facts * Recent Tax Law Changes – Fashionistas Beware – Last July, Connecticut eliminated their full exemption for clothing priced under $50 and replaced it with a luxury tax which taxes clothing (as well as handbags, luggage, wallets, and watches) priced o
Slide 12: Challenges of Tax Compliance
Challenges of Tax Compliance Mergers/acquisitions and business growth adds to compliance workload Struggling with state and local jurisdictions Running into penalties and fees Sales tax department spending 70-80% of time on compliance – Less time for strategic issues – Less time for process
Slide 13: How Do Companies Currently Handle It?
How Do Companies Currently Handle It? 13 © 2011 ADP, Inc.
Slide 14: How Are Companies Currently Handling Compliance?
How Are Companies Currently Handling Compliance? Manual – ERP systems are manually updated when tax rates or tax laws change – Reports and spreadsheets are manually consolidated to populate paper or web forms Compliance Software – Software containing rates and forms with more or less robust impo
Slide 15: Why Companies Choose to Automate
Why Companies Choose to Automate Keeping up with tax law changes is time consuming – There are 13,253 tax outcomes for over 8,000 taxing jurisdictions and between 800 and 1,400 tax rate and rule changes every year in the US – Changing tax rules for both product and purchaser – Sales tax holidays
Slide 16: How ADP Can Help!
How ADP Can Help! Implementation and setup of service for Outsourced Returns: – Returns management – Implementation and setup of service – Fund management and payments – Notice management with timely responses Tax calculation A service provider with the expertise to answer your questions and u
Slide 17: Case Study: So How Does Cornell Storefront Systems Handle This?
Case Study: So How Does Cornell Storefront Systems Handle This? 17 © 2011 ADP, Inc.
Slide 18: Case Study: Cornell Storefront Systems
Case Study: Cornell Storefront Systems Security closure and services solution provider Cost effective closure solutions with anywhere, anytime service Cornell Storefront Systems was established as the national account arm of Cornell Iron Works Cornell Iron Works founded 1828 Family-managed
Slide 19: Case Study: Company Background
Case Study: Cornell Storefront Systems Company Background – Current ERP: Microsoft Dynamics NAV – Doing business across the U.S. and Canada – Generate about 1300 invoices a month – Filing multiple tax returns across the U.S. – Mobile service personal across the U.S. 19 © 2011 ADP, Inc.
Slide 20: Why Seek an Outside Vendor for Tax Compliance?
Case Study: Cornell Storefront Systems Why did we such for an outside vendor to assist us with Tax Compliance? – Small company with small administrative staff looking to focus on core business – No in-house expertise in Sales and Use Tax – Very manual to maintain all tax rates in our current syste
Slide 21: Why We Picked ADP Sales and Use Tax
Case Study: Cornell Storefront Systems Why we picked ADP Sales and Use Tax – Sales service went above an beyond – Strong Customer Service: I could talk to the tax experts directly – We wanted a strong solution that would provide us both rates and product taxability rules – We felt because of ADP’s
Slide 22: Polling Question #2
Polling Question #2 Are you currently using an external tax “bolt on” to calculate taxes? If so, which one? A. Vertex® B. CCH C. Other D. Not Applicable/Don’t know NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements for receiving CPE and
Slide 23: Sales and Use Tax Calculation
Sales and Use Tax Calculation 23 © 2011 ADP, Inc.
Slide 24: Calculating Taxes with Microsoft Dynamics using the ADP Tax Engine
Calculating Taxes with Microsoft Dynamics using the ADP Tax Engine Benefits of using an external tax calculation engine in Microsoft Dynamics ERPs – Quick deployment of the adapter – Minimize setup (no setup for taxes is required, only for the ADP adapter) – Detailed tax calculation results with d
Slide 25: Standard Adaptor
Calculating Taxes with Microsoft Dynamics using the ADP Tax Engine Standard Adaptor Standard ADP supported by ADP Adaptor Automate Sales and Use ADP Audit Date Tax Calculation Tax Calculation Engine GEO Tax Rate Codes Reporting Customer Product Exemption Taxability s 25 © 2011 ADP, Inc.
Slide 26: What You Want in a Standard Integration
Calculating Taxes with Microsoft Dynamics using the ADP Tax Engine What you want in a standard integration: – Simple installation and easy setup – Seamless integration between Microsoft Dynamics GP and the ADP Sales and Use Tax System – Sales and use tax based on the ADP Sales and Use Tax System –
Slide 27: The Tax Calculation Triangle
Calculating Taxes with Microsoft Dynamics using the ADP Tax Engine The Tax Calculation Triangle: Getting to the correct rate How do you want to manage customer exemptions? Customer Location Product Verify address and use Map to standard product GEO codes taxability rules 27 © 2011 ADP, Inc.
Slide 28: Determining the Correct Address for Tax Calculation
Calculating Taxes with Microsoft Dynamics using the ADP Tax Engine Determining the correct address for tax calculation – Microsoft Dynamics ERPs access the ADP tax engine’s built-in address-driven methodology, which identifies zip codes within multiple counties and/or cities, and recognizes outsid
Slide 29: Exemption Certificate Management
Calculating Taxes with Microsoft Dynamics using the ADP Tax Engine Exemption Certificate management – Know what you have exempted and why when the auditor comes in Ability to manage exemptions and handle special product codes taxing – Reduced manufacturing rates Rules based on customer or cust
Slide 30: Standard Product Taxability Rules
Calculating Taxes with Microsoft Dynamics using the ADP Tax Engine How Microsoft Dynamics ERPs utilize the standard Product Taxability Rules in the ADP system: – Out-of-the-box standard product codes: More standard content means less customization, less maintenance, and faster time to production –
Slide 31: Polling Question #3
Polling Question #3 Have you recently had an unfavorable audit assessment? A. Yes B. No C.Not Applicable/Don’t know 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
Slide 32: Polling Question #4
Polling Question #4 How are you currently filing your tax returns? A. Manually B.Utilizing Forms software C.Outsourced to a third party D.Not applicable/Don’t know NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements for receiving CPE and
Slide 33: Outsourced Returns
Outsourced Returns 33 © 2011 ADP, Inc.
Slide 34: Outsourced Returns: Overview
Outsourced Returns: Overview Taxes calculated using ADP – 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 jurisdictions ADP has 60 years of payroll tax filing
Slide 35: Outsourced Tax Returns: Workflow
Outsourced Tax Returns: Workflow Client ADP State and Local Microsoft Dynamics Jurisdictions Notice Handling Return Payment Tax Engine Audit File SFTP Preparation Processing and Filing Standard Standard Tax Return Copies Reports Reports & Reporting to Client 35 © 2011 ADP, Inc.
Slide 36: Outsourced Returns: Calendar
Outsourced Returns: Calendar ADP Outsourced Returns: Calendar / Processing r e p /Rep ortin g Schedule rn P Retu l o ad s t i ce o wn it N o c D Deb x C al & n/Ta rns s m issio Retu orts & Tr a n Re p P ay Da t a File t i ng epor P r ep/R rn ADP Re t u sfer to y Tran & Mon e P ay File & P ay File 36
Slide 37: Outsourced Returns: Calendar
Outsourced Returns: Calendar 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 customer – (S/U Li
Slide 38: Outsourced Returns: Overview
Outsourced Returns: Overview 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
Slide 39: Outsourced Tax Returns: Reporting
Outsourced Tax Returns: 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, adj
Slide 40: Outsourced Returns: Customer Portal
Outsourced Returns: Customer Portal 40 © 2011 ADP, Inc.
Slide 41: Outsourced Tax Returns: Implementation Assistance
Outsourced Tax Returns: 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 exp
Slide 42: Outsourced Returns: Implementation
Outsourced Returns: Implementation ADP takes responsibility 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 – Expert in both tax and implementation t
Slide 43: Outsourced Returns: Implementation
Outsourced Returns: Implementation 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 22 23 24 25 26 27 28 to process returns 29 30 Develop
Slide 44: Q&A
Q&A 44 © 2011 ADP, Inc.
Slide 45: 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 45 © 2011 ADP
Slide 46: 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 ADP Logo and ADP are registered trademarks of ADP, Inc. In the Business of Your Success is a service mark of ADP, Inc. All other marks are the property of their respective owners. 46 © 2011 ADP, Inc.
Slide 47: Thank You for Attending
Thank You for Attending.