Learn How MasterTax Works
Schedules
MasterTax follows each tax authority’s requirements for scheduling
tax payments, assigning due dates using your requested payment frequency
or calculated based on the tax liability. When additional liabilities for
the same tax period are processed, MasterTax validates the assigned due
date and makes the appropriate adjustments. Example
Pays
MasterTax offers multiple tax payment options, including full automation
with our integrated EFTPS/EFT credit and check-writing features:
- Federal payments are prepared and transmitted to your EFTPS center.
- Payments for states and locals supporting EFT are formatted and
transmitted in the banking-industry standard NACHA CCD format.
- States and locals remitted by check are handled by our integrated check writing system.
For convenience, MasterTax’s export options generate files for direct import
into your accounts payable and general ledger systems. To fulfill paper distribution
requests, MasterTax creates EFTPS, EFT and check requests with all the information
needed for entry into your system or submission to the tax authority.
Balances
MasterTax balances to your payroll’s quarter-to-date and year-to-date tax liabilities,
taxable and gross wages. This on-demand balancing identifies any out-of-balance conditions
and automatically makes adjusting entries.
MasterTax ensures that the taxes you have paid match what you owe, and corrects differences
caused by SUI rate changes, payments to the wrong agency or behind-the-scenes adjustment
payrolls. Differences may be corrected by entering adjustments or by letting MasterTax
automatically create balancing entries for additional payments, refunds or credits applied
to the next quarter.
Files
MasterTax produces agency-approved federal, state and local tax returns. Returns for
tax payments (coupons), quarterly and annual reconciliations are signature ready or
may be electronically signed. E-filing is available for agencies that require online
submission. Both agency and employer copies of returns are permanently stored for
reprinting years later.
Analyzes
By permanently storing tax liability and payment history in one database, MasterTax
allows point-in-time reporting--a vital tool when responding to a tax-authority
inquiry or to a CFO’s request. With customized selection parameters, MasterTax
allows reporting or exporting of information your way. Specialized reports can be
created easily with any relational report writer and MasterTax’s open views.
