Why might my Direct Filing ACH be less than what TaxCloud is saying I collected.
3min read
In many cases, the states provide filing discounts or vendors compensation. So if you are noticing small differences between what TaxCloud Reporting is saying you collected, and what was remitted to the state, you can check below to see if one of these applied to you:
| State | Discount | Sources |
|---|---|---|
| Alabama | A discount is allowed if the tax is paid before the 20th day of the month in which the tax is due. The sales tax discount consists of 5% on the first $100 of tax due, and 2% of all tax over $100. Please note, however, that the monthly discount may not exceed $400. | • Alabama DoR FAQ |
| Florida | You are entitled to deduct a collection allowance of 2.5% (.025) of the first $1,200 of the Amount Due (Line 10), not to exceed $30. | • FL DR15, Page 7 |
| Illinois | The Retailers’ Occupation Tax Act and the Use Tax Act allow a retailer to claim a discount of 1.75% (.0175) of the retailers’ occupation tax and use tax collected or $5 per calendar year, whichever amount is greater, provided the retailer properly and timely files, and pays the applicable tax by the due date. | • IL DoR |
| Louisiana | Merchants may retain a percentage of the total amount of sales and use taxes due for the purpose of compensating the dealer for accounting for and remitting the tax to the state of Louisiana. \nThe current rate of vendor’s compensation is 1.05%. | • LA RIB 20-015 |
| Maryland | If you file your sales and use tax return and pay your sales tax on a timely basis, you are allowed to keep a portion of the sales tax as a discount. The allowable discount for timely filing and paying is 1.2 percent of the first $6,000 collected and 0.9 percent for the amount above $6,000. | • MD SU NOT2 |
| Mississippi | For collecting, complying fully with the applicable statues, filing and paying all taxes when due, certain taxpayers are allowed a 2% discount of liability. \nThe discount is limited to $50.00 per calendar reporting period not to exceed $600.00 per calendar year. | • MS DoR, Vendor Discount |
| Missouri | On all sales tax returns filed and paid by the required due date, you are granted a 2 percent timely payment allowance. Take the amount of tax due times 2 percent. Then subtract this amount from the amount of tax due. | • MO Sales Tax FAQ, "How is the two percent timely payment allowance calculated?" |
| New York | Your business is eligible for the vendor collection credit if you file sales tax returns on and Quartely, or Annual basis. \nThe credit equals 5% of the taxes and fees reported on your return, up to a maximum of $200 for each quarterly or annual reporting period. | • NYS DoR Vendor Collection Credit |
| South Carolina | South Carolina will allow a discount for timely filing a sales and use tax return, provided the taxes due on the return are paid in full and by the due date. \n \nThe discount is calculated based on the total taxes (state and local) due with the return. For returns showing a total tax due (state and local) of less than $100.00, the discount is 3% of the total tax due. | • SC DoR \n• Page 10, SC DoR FAQ |
| Texas | The state allows a 0.5% timely filing discount to any taxpayer filing timely reports and payments. | • TX Comptroller FAQ, |
| Virginia | As compensation for accounting for and paying the state tax, a dealer is allowed a discount of 0.8%, 1.2%, or 1.6%, depending on the volume of monthly taxable sales, of the first 3.0% of the state tax due in the form of a deduction, provided the amount due was not delinquent at the time of payment. | • 23VAC10-210-485. |
Funding for SST filing will be pulled directly by TaxCloud, and can be reviewed from yourTaxCloud account's Tax Funding page.