How Payment Methods Are Used For Billing and Tax Funding

This article explains how TaxCloud's billing works, depending on what type of payment methods you enter into your TaxCloud account.

SST Tax Funding

A bank account or credit card is set as the primary payment method:

1. If the payment method fails, we do not automatically try another payment method.
2. TaxCloud will send an automated email, letting you know the tax funding attempt was unsuccessful.

:::info Note: If TaxCloud is unable to obtain the funding in time to remit to the state by the filing deadline, we may file a "Failure to pay" notice with SST, and the merchant would then be responsible for paying any affected states directly.

:::

Direct File (Non-SST) Tax Funding

For non-SST states where TaxCloud files returns on your behalf (Direct File), tax funding is pulled by ACH from bank details we hold separately from the in-app Payment Methods screen.

• Adding or changing a payment method in TaxCloud does not update the bank account used for Direct File funding.
• To update it, email Support your revised ACH details as a password-protected PDF, using your Merchant ID # as the password.

For non-SST states you file yourself, TaxCloud does not pull funding — pay directly in each state's portal.

TaxCloud Billing

A bank account or credit card is set as the primary payment method:

1. If a payment method fails, the system will use a secondary payment method, but only of the same type of payment method.
2. This means if there are two credit cards or two bank accounts on file, the secondary payment method will be charged if the first one fails.
3. However, if there is a credit card and one ACH on file, and the credit card is the primary payment method and fails, it won't attempt to charge the ACH.

Not Supported

We do not support having two bank accounts: one for TaxCloud Billing and one for SST Tax Funding.