When does TaxCloud pull my tax funding?

An integral part of sales tax compliance is remitting the funds to the state in a timely fashion. Here's how we manage the reporting and funding processes for both SST and non-SST states.

SST states:

TaxCloud processes funding pulls in a single lump sum based on reports generated from the previous month's transaction data. These reports, which inform our Filing and Finance teams, lead to the initial debits from your bank account.

To accommodate the diverse platforms our merchants use to sync data with TaxCloud and account for any adjustments made by our merchants after the initial report generation, we also conduct a secondary report generation along with a secondary funding pull. This ensures that all updated transaction data is captured and reports are accurate.

As one of the few Certified Service Providers in the SST program, TaxCloud can debit your business and remit payments to all SST member states on your behalf.

1. Report Generation:

• First Report: On the 3rd of each month, TaxCloud generates the initial version of your sales tax reports. This includes all transactions up to that date.
• Second Report: After the transaction update deadline on the 10th, TaxCloud generates a second version of your sales tax reports. This ensures that any additional transactions added after the 3rd are included.

2. Tax Funding:

• First Pull: Following the generation of the first report on the 3rd, TaxCloud initiates a funding pull to cover the sales tax collected from your transactions up to that point.
  • This may happen around the 5th to the 10th of the month
• Second Pull: If any additional transactions are recorded and included in the second report after the 10th, another funding pull is initiated. This ensures that all sales tax due is properly remitted.
  • This may happen around the 15th to the 18th of the month

Non-SST States

The filing process for non-SST states differs from that of SST states. Our Direct Filing team accesses each state's portal to file your returns. These Departments of Revenue (DORs) manage the tax funding and debit merchants directly.

1. Return Filing:
• Our dedicated filing team handles the submission of your sales tax returns to the respective state authorities.
2. State Debit:
• Post filing, the state directly debits the bank account associated with your state account for the amount due. This state-managed debit process ensures timely and accurate payment of your sales tax obligations.
• TaxCloud does not determine when the state debits your account.

Key Points to Remember

• Transaction Deadlines: Ensure all transactions are updated by the 10th of each month to avoid discrepancies in your reports and funding pulls. Adjustments are made if the 10th falls on a weekend or holiday.
• Bank Account Information: Verify that your bank account details are accurate and up-to-date to prevent any issues with state debits in non-SST states.
  • Also, please ensure there are no debit blockers on your payment methods for TaxCloud or the payment method attached to your non-SST state portals.
• Consistent Monitoring: Regularly check your reports and funding status through your TaxCloud account to stay informed about your sales tax compliance status.

By adhering to these processes, TaxCloud ensures that your sales tax is reported and remitted accurately and on time, helping you maintain compliance with state regulations. For any questions or further assistance, our support team is ready to help.