Each of your client's companies is obligated to calculate, collect, report, and pay taxes within the taxing jurisdictions in which it sells products and services. As a company changes over time, regularly review the company settings to make sure the company is meeting its tax obligations. Add jurisdictions to change where and when taxes are calculated and reported for a client's company.
You can add these settings at a country, state, and local level. You can also bulk add jurisdictions.
The upper-level jurisdiction must be enabled before you can enable the next lower-level jurisdiction. For example, US must be enabled before you can enable the Arizona jurisdiction, which must be enabled before you can enable the Apache Junction jurisdiction.
Before you begin
Evaluate the client’s tax profile to determine the appropriate taxing jurisdictions.
- In Managed Returns for Accountants, hover over the Filing Calendars and then select Nexus Management.
The Nexus Management screen opens.
- Use the Filters pane on the left to locate the desired company and nexus group type, then select Go.
- In the table, select the + icon to add nexus.
The Add Country Nexus menu opens.
- Select a country.
- Select a Nexus type:
- Sales or sellers use tax – collect sales tax on intrastate transactions, and sellers use tax on interstate transactions
- Sales tax – collect sales tax on all transactions
- Enter an effective date for the country nexus.
The country-level effective date must be earlier than the nexus effective date of all regions within the country.
- Optionally, enter an end date for the country nexus.
The country end date must be later than the nexus end date of all regions within the country.
- Select Next.
The Add Region Nexus menu opens.
- Select any regions where the client has nexus, then select Next.
- If any of the selected regions have local nexus requirements, the Setup Local Nexus menu appears. Select a local nexus type, then select Next.
The available local nexus types are:
- Applied to all locals: Nexus is enabled in all local jurisdictions.
- State-administered: Nexus is enabled only in the local jurisdictions that are administered by the state. If the client has nexus in any home rule local jurisdictions, you can add them in a later step.
Home rule locals are those jurisdictions the state has granted the ability to pass laws to govern themselves. Filing for home-rule is separate from the state, and the client has to review each home-rule requirement for registration.
- Selected: In a later step, you must select specific local jurisdictions where the client has nexus.
- On the Validate Nexus to be Added menu, review the new regions and then select Save to save your changes.
- If you added a region with the Selected or State-Administered local nexus type, a message appears indicating that you must add local nexus for the region.
- Select OK to dismiss the message, then select the Locals button to the far right of the region name.
- Select Add New Locals.
- Enter an effective date for the local nexus.
This date applies to all regions you select here, but you can change the effective date for individual regions in a later step.
- Optionally, enter an end date for the local nexus.
This date applies to all regions you select here, but you can change the end date for individual regions in a later step.
- Select the local regions where the client has nexus.
- Select Approve Selection.
- Optionally, select the Edit button for any regions where you need to adjust the effective or end date, then select Update.
- Select Save.