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In this issue:
- CA Sales Tax Split Rate Returns
- Changes in NJ WR-30 & NJ-927 e-file
- "Per Office" or "Per Firm Name"?
- Please keep us informed of firm changes!
- Note to customers who wish to avoid paying sales tax by downloading software from the Internet...
CA Sales Tax Split Rate Returns
Effective April 1, 2009, the California state-wide sales tax rate increased by 1%. Because existing Forms 401 and 401-EZ will only accomodate a single tax rate, the BOE created Forms 401-ASR and 401-EZSR, or Split Rate Returns. Taxpayers whose filing period is fiscal year 7/1/2008 - 6/30/2009 should use the Split Rate Return.
Forms 401-ASR and 401-EZSR have been added to CA Sales Tax Preparer. For the latest update, click here.
Changes in NJ WR-30 & NJ-927 e-file
New Jersey is in the process of making changes to their SFTP e-file specifications, file naming conventions, and user information for filing Forms NJ-927 and WR-30 for the 2nd quarter of 2009. CFS will update Payroll System when we receive notification from New Jersey concerning these changes, and we will notify you when the update is available. You should not submit 2nd quarter filings until this update is available and installed; files submitted using the old specs will be rejected.
Users need to prepare for the 2nd quarter e-file process now. If you plan to submit Forms NJ-927 and WR-30 via SFTP using Payroll System, and you did not receive authorization to e-file 1st quarter forms, be sure to download the authorization form from New Jersey's website and submit it, listing each of the employers you plan on e-filing. Be sure each of the employers is registered for EFT (ACH debit), or that you have their account information to pay by e-check. For more information, visit www.state.nj.us/treasury/revenue/taxemp.htm, or call 1-609-633-1132.
"Per Office" or "Per Firm Name"?
CFS software is sold on a "per office and/or firm name" basis. This may sound confusing, but it's really pretty simple. The license agreement you see when you install our software includes the following provisions under the heading, "2. Use of the Software:"
- SINGLE USER VERSION
If you have purchased a Single User Version license, you may run the Software on one or more computers for one Office operating under one Firm Name, but not on a Local Area Network or by Remote Access.
- NETWORK VERSION
If you have purchased a Network Version license, you may run the Software on one or more computers on a Local Area Network for one Office operating under one Firm Name.
- REMOTE ACCESS
CFS Tax Software, Inc. licenses its software on a per-Office basis. This Agreement does not cover Remote Access. If you wish to run the Software at more than one Office using some form of Remote Access, contact CFS at 1-800-343-1157 for licensing requirements.
What this means is:
- If you purchase the SINGLE USER version of a CFS program, you may install it on one or more computers in the same office using the same firm name, but not on a network.
- If you purchase the NETWORK version of a program, you may install it on a Local Area Network for one office using the same firm name.
- If your firm has more than one office, you must purchase a separate copy of the software for each office.
- If your firm shares an office with another firm operating under a different name, each firm must purchase a separate copy of the software.
Please keep us informed of firm changes!
Have you recently made changes to the name, address, or phone number of your firm? If so, you need to let CFS know about it. Your firm information needs to be accurate and up-to-date so that you receive our mailings, so that we can notify you of program updates, and most importantly, so that your license code functions correctly to give you access to the programs you have purchased.
The easiest way to update your firm information is to submit your changes online here. (This page is also available by going to TaxTools.com and selecting Address Change from the MyCFS menu.) You can also fax changes to us at 805-522-0187. Please be sure to include your customer ID number.
We prefer to have firm changes in writing, but for simple changes such as updating or correcting a phone number or an e-mail address, or if you have any questions, please call our customer service department at 1-800-343-1157.
Note to customers who wish to avoid paying sales tax by downloading software from the Internet...
By law, California sales tax applies only to tangible products. When you purchase a program from us on CD, we must collect sales tax on the purchase because you are receiving a tangible product (the CD). However, when you download a program from the Internet, we do not collect any sales tax because you are not receiving a tangible product from us.
Seems simple, doesnít it? It isóif you are only purchasing one program. However, because most of our programs come on one Multi-Program CD, you may be charged sales tax on a downloaded program if you purchase a CD at another time, even if it is for a different program.
Letís say you purchase TaxTools in January and download the program from the Internet. You will not be charged any sales tax. However, when it comes time to buy CA Sales Tax Preparer in February, letís say you decide to purchase that program on CD. Of course, you would expect to pay sales tax on CA Sales Tax Preparer. However, you probably did not realize that, because TaxTools is contained on that same CD, we must also retroactively collect sales tax on your previous purchase of TaxTools.
The following rule applies to all CFS software that is sold on the Multi-Program CD (i.e., everything but Tax Research and Fill-N-Print): if you purchase any program on CD, we must charge you sales tax on every program you have purchased (or will purchase) by download that is also contained on that CD.
If you wish to avoid paying sales tax, download all of your CFS software!
CFS Customer Service
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