Posts Tagged ‘Taxes’


Changes Coming to Nextiva Invoices

As a service provider in the regulated VoIP industry, Nextiva is required to collect federal, state and local government taxes, surcharges and fees. These taxes and fees are location and usage based and will now be itemized on Nextiva invoices.

Monthly invoices, beginning this month, will include the following sections:

  • Subscription Plan Fee – Product price per user and usage charges, where applicable
  • Package Add Ons – Phones, devices and plan upgrades
  • Shipping – Initial order shipping of phones and devices
  • Taxes and Fees – Itemization of federal, state, city and other local taxes, regulatory surcharges and service delivery fees
  • Phone Numbers on Account – A list of all phone and fax numbers on the account
  • Billing Information – Account billing address and payment information

Standard Definitions:

RRF = Regulatory Recovery Fee: The RRF is assessed as a percentage of interstate and international charges. The RRF is intended to recover increased VoIP provider operating cost due to local, state, and federal regulatory compliance. RRF is separate from government taxes and fees. 

E911 = Enhanced 911 is a service that associates a caller’s physical address with their phone number. In case of emergency calls, the caller’s phone line generates an automatic number identification (ANI) signal to the network. The E911 system then routes the number to the appropriate emergency center. This service is supported by a dedicated network that has been built to address E911 call needs from a reliability, capacity and technology standpoint. All VoIP providers, as well as local and state emergency facilities, are responsible for collecting and funding different aspects of the infrastructure that supports this critical service.

USF = Universal Service Fund: Universal service is the principle that all Americans should have access to communications services. The USF assessment is a charge collected by telecommunications carriers for federal and state funds that support the provision of affordable communications services to rural, isolated, and high-cost regions of the country; low-income residential consumers; schools, libraries, and rural health care.

Invoice Modifications


4 Mistakes that Will Get the Government Calling You

?????????????????????????????????????????????????????I can still remember the day the Department of Revenue shut my company down.  It seems that we had not done a timely job of remitting the sales tax that we had collected from our customers and this government agency wanted their money. My bookkeeper had apparently ignored all their warnings by mail. When they arrived, they put a big sticker on our door, telling all our customers and employees that we had to "pay up to open up". It was a similar story when the IRS was concerned that we were not remitting employees' collected payroll taxes in a timely period of time. This situations happened because as a new owner, I did not know all my tax responsibilities.

Here are four mistakes that can get the government calling on you and maybe even putting you out of business:

  1. Non payment of payroll taxes. Each pay period, a company deducts from the employees paycheck taxes that are due to the government. If a company is doing this themselves, this money needs to go into a separate account and get sent to the appropriate agency.  A better way to do this is to use a payroll service that will withdraw the taxes and pay the government automatically. With this service, there is no temptation by  a "cash strapped" small business owner to spend payroll tax money they collected, but belongs to the government.
  2. Non payment of sales tax. With each transaction, a company collects sales tax for  the government. It is then the companies responsibility to remit these funds to the appropriate agency. A company should ensure that theses taxes get posted to a separate account so the money is there to send at the end of the month.
  3. Non payment of use tax. This is a tax that a company assesses on themselves for product they purchased for their own use where they should have been charged state sales tax, but weren't. This needs to be send to the state typically every quarter.
  4. Health code violations. Run an office that is unhealthy for employees or a location unfit for customers? Inspectors will shut that company down on the spot and lock the doors. This gets much stricter when serving food and beverage or a hotel

In the days when a company's online reputation is critical, getting shut down like this will do nothing but hurt your Yelp and TripAdvisor ratings.




 
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