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Avalara Help Center

Can Avalara make my larger second prepayment for Q2 in California?

Overview

Per CA state guidelines, your second prepayment for Q2 must be an advanced payment for the period of May 1st to June 15th and must be equal to: 

  • 90% of the tax liability for May plus 90% of the tax liability for the first 15 days of June, or
  • 135% of the tax liability for May, or
  • One-half (1/2) of the measure of tax liability reported for the corresponding quarterly period of the preceding year multiplied by the tax rate in effect when prepayment is made, provided you or your predecessor were in business during all of the quarter.

Environment

Avalara Returns

California

Resolution

  • Avalara can certainly make the larger prepayment on your behalf.
    • In order to make the payment accurately, the options that Avalara has available would be
      • 135% of the tax liability for May, or
      • One-half (1/2) of the measure of tax liability reported for the corresponding quarterly period of the preceding year multiplied by the tax rate in effect when prepayment is made, provided you or your predecessor were in business during all of the quarter.
    • If you prefer to use 90% of the tax liability for May plus 90% of the tax liability for the first 15 days of June, then we suggest that you make the payment directly to the state.
      • Please contact Support to inform us so that a duplicate payment is not made on your behalf.
  • Because not all customers are required to make this prepayment, Avalara has to be notified to do so
    • The amount can be adjusted in AvaTax with your specified amount, or
    • You can open a case with Support to have the amount calculated by our compliance team.
      • Please make sure you specify which method listed above you would like to use.
  • All liability changes are required to be made before the locking date of the 10th.
    • An extension service can be setup for the 12th, at the latest, to make this change.