generic cytotec from india The patented STAC methodology leverages the following existing technology and infrastructure:
http://bymarkita.com/tag/trinity-heights/ CAPTURING AND TRANSMITTING SALES TAX DATA
Credit card processing technology today supports Corporate Purchasing Cards, which require the processing and reporting of sales tax transaction amounts. The capability to capture sales tax amounts has existed since the advent of Commercial, Corporate and Purchasing cards from all the different Card Brands for over 15 years. In fact, in a Merchant Services Response to Request for Information prepared in 2014 for the Commonwealth of Massachusetts and the MBTA, Vantiv touted that its ability to include sales tax data in incoming settlement files saved a merchant approximately $354,000 in annual interchange expense.
If the people responsible for tax remittance talked to their treasury department, they would find that major retailers save a significant amount of money a year by providing their processors and card issuers the tax amount of any transaction using one of these card types. Sending the exact sales tax amount with each transaction (along with a few other data elements) ensures that the transaction will comply with Card Brand interchange requirements so that the merchant pays the most beneficial Discount Rate. If the merchant fails to send the tax amount the transaction will downgrade and the Merchant will have to pay as much as 50 additional basis points.
SPLITTING CREDIT/DEBIT BATCH RECEIVABLES INTO SEPARATE ACCOUNTS
Credit card processing technology today also allows for any credit card processing company to split settlement funds into two separate funding accounts. This ability has existed for many years.11
For example, Vantiv Dynamic Payout can split fund on a transaction by transaction basis with varying percentages per transaction. First Data can split fund merchants daily with its Payment Facilitator clients as well as government clients.
In fact, many credit card processors have developed, utilizing this technology, significant lines of Merchant Cash Advance business. Merchant Cash Advance companies provide funds to businesses in exchange for a percentage of the businesses’ daily credit card income, directly from the processor that clears and settles the credit card payment. The credit card processing company automatically splits the credit card sales between the business and the finance company. This is generally a common and preferred method of collecting funds for both the clients and finance companies since it is seamless. A company’s remittances are drawn from customers’ debit and credit-card purchases daily until the obligation has been met. This is considered split funding.
With split funding, the merchant authorizes its processor to forward the agreed amount of the merchant’s daily settlement dollars to the provider’s account and remit the balance to the merchant’s account. Split funding is a preferred structure because it takes less time and is less risky. It offers the most convenient option for merchants, since it makes it easier for the merchant to manage its payback activity. Most providers form partnerships with payment processors and then take a fixed or variable percentage of a merchant’s future credit card sales.
The credit card processors also currently can split off merchant settlement funds to build a reserve to cover fees and assessments. This is done either by establishing a rolling reserve or a fixed dollar amount reserve. This processor functionality is clearly itemized in the Bank Card Merchant Agreement between Vantiv and the Commonwealth dated 9/9/2015.
The STAC methodology simply enables the application of current technology that puts revenue in the credit card processor’s pocket also be used to ensure that taxpayers are also seeing the benefits from this existing technology.
PROCESSOR REMITTING FUNDS DIRECTLY TO GOVERNMENT ENTITIES
Section 6050W of the Internal Revenue Code and the implementing Treasury Regulations mandate that reporting entities must report merchants’ payment card and third-party network transactions, based on tax identification numbers and tax filing names and that these entities must support the bifurcation of merchant settlement dollars based on IRS guidelines.
Payment settlement entities are required to identify and split off tax obligations from reportable transactions in 2013 based on the current IRS regulations (currently 28 percent) and they are subtracted from the merchant’s daily deposits.
Not only do credit card processors have the technology today to be compliant with the IRS, but they also use it to be compliant with various states who have similar requirements applied differently.
SUCCESSFUL PILOTS OF REAL TIME SPLITTING OF SALES TAX AMOUNTS
The technological feasibility of the STAC patented methodology has been demonstrated through two pilots, one that lasted for two years at a small business in New York City and one that was performed at a restaurant during the 4th quarter of 2016 in Massachusetts for a week. In each case, while the business was in operation, amounts were identified for sales tax obligations and were successfully remitted daily to secondary accounts that were established as proxies for State receiving accounts.
PROCESSOR REPORTING CAPABILITIES
Existing processor reporting capabilities are very advanced and can easily support application of the patented STAC methodology. For example:
Both of First Data’s advanced reporting tools can deliver data to merchants in any format reports down to the sub transaction level.
Vantiv’s has a fully customizable interface to design reports that help streamline workflows, analyze large data sets and deliver on-demand reports.
Robust 1099 reporting is already supported by processors today.
Processors are currently able to provide a monthly amount collected in sales tax and remitted to states. This can be included similarly on the monthly 1099 reporting today.