Managing Tax Compliance and Payment Issues Post Pandemic: It Pays to Outsource

Remote work environments are the new norm amid the COVID-19 pandemic. Research shows that remote work is expected to increase by 34 percent to match employee demand, and it’s expected to grow further. Many businesses understand that they can save money and maintain productive operations while allowing employees to work from home.

Unfortunately, remote work doesn’t always align well with paying taxes. Turning to an effective automated tax solution can make the burdens of facilitating tax payments easier from anywhere.

Company Tax Payment Struggles

Even before COVID-19, many organizations found keeping up with constant changes to the tax code a challenge. According to the Tax Foundation, there are about 60,000 pages of case law relevant to the nation's tax code, with more being added through federal legislation. South Dakota v. Wayfair or the CARES Act are recent major examples.

And that’s before it comes to sending the payments. Many organizations have discovered that making timely tax payments is difficult for the following reasons:

• Costs and inefficiency: Estimated tax compliance costs range from $200 billion to $400 billion annually. Many businesses opt to hire outside professionals to file returns or make jurisdiction payments. Some organizations may not have sufficient staff to maintain compliance or manage payments effectively, placing a stressful workload on tax-focused departments.
• Large amounts of information: The more a company owes in taxes, the more paperwork and jurisdictions are involved. This means keeping track of multiple records and mailing addresses or websites to facilitate payments. A business runs the risk of penalties and interest fees if it can’t stay organized.
• Jurisdiction payment requirements: Every jurisdiction’s payment requirements are different, and they, too, can change. Some require paper checks with a printed return. Others demand electronic payments. Keeping track of who requires what type of payment -- and when -- is a heavy lift even for the most thorough tax professional.
• Remote roadblocks: It’s unlikely your organization is making the same type of payments to multiple jurisdictions. Although online payments are ideal, many still require mailed checks or returns. Making payments remotely may cause some logistical obstacles. Depending on the COVID-19 protocol of your organization, this may mean coordinating office time to receive access to company checks — sometimes multiple times a month depending on due dates. What was, before COVID-19, a challenging process just got more difficult.

Upgrade to an Outsourced, Automated Tax Payment Solution

Whether at home, on the go, or in the office, an automated tax payment solution can ease the pains associated with tax payment and compliance. Late payments are one of the quickest ways to get on the bad side of the Internal Revenue Service or any jurisdiction. They may also generate interest fees or other penalties.

With its secure, cloud-based technology, Anybill’s processing center has prepared millions of timely tax returns and electronic and paper payments for large corporations. Each check, return, and other essential paper documents go through compliance review. They are also printed with a unique barcode, which helps prevent errors, guaranteeing its accuracy ahead of mailing. Electronic payment and return images are stored in Anybill’s system for quick and easy reference.

Telecommuting does no favors with a traditional office setup. Having the right tools in place to facilitate and maintain tax-related information is key. Anybill’s automated tax solution makes the perfect sidekick to any finance team, offering more than secure payments:

• Supports all tax types and works with all jurisdictions
• Accommodates check or EFT payments
• Provides full data transparency, including mailing validation and check images
• Offers tax updates, and more.

No matter where you work, your team is always synchronized and can stay tax compliant thanks to the robust infrastructure of Anybill’s integrated software, hardware, and banking platform. Plus, despite whatever the world may throw at us, there is no disruption to production or payment processing, giving your team peace of mind.

‍Anybill has been a leading provider of tax payment services for over 15 years. With over 2,000 clients, we have made millions of payments on time and accurately. We can do the same for you. Request a demo today.