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 (see map below).

SST states:

For SST states, TaxCloud pulls funds in a single monthly lump sum based on your transaction reports and remits it to the SST Program member states alongside a special electronic return used in the SST program.

Report Generation:

• First Report (Initial) – Generated on the 3rd of each month, covering all transactions through that date.
  • This is the time to review your reports and ensure your transaction data is accurate. If the amounts shown are not close to what you expected, or if you need additional time to update your data, please contact TaxCloud Support before the 10th. We can temporarily pause filing if needed.
    • To avoid late penalties, TaxCloud may proceed with a $0 filing or file based on the current data, and then submit an amendment once your transactions are corrected. Let us know your preference when you reach out.
• Second Report (Final) – Generated after the transaction update deadline on the 10th, to capture any additions or corrections made since the first report.

Tax Funding:

• The final report informs the tax funding amount withdrawn on the 13th (or the next business day if the 13th falls on a weekend or holiday).
• Refunds for Adjustments: If your transaction updates result in a lower tax amount due than originally pulled, TaxCloud’s Finance team will issue a refund. Refunds typically occur about a week after the tax payments are finalized with the states.

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.
• Please note that, to our knowledge, states do not allow card payments and only allow ACH withdrawals (via routing & account number). Because of this, when you're setting up your first non-SST filing with us, we'll need to collect that banking information from you during enrollment.

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.

SST & Non-SST States Map