This month, Encompass joined the ranks of Avalara Certified Implementation Partners. We have been implementing Avalara’s automated tax compliance software and Epicor ERP for years. It was only recently that we made things official.

A big congratulations to our own Leslie Kendall for completing the certification program and earning us a place of distinction among the Avalara and Epicor partner communities. We want to thank Avalara as well for a partnership that continues to grow and develop alongside our respective organizations. We look forward to many more years empowering manufacturers with  business management solutions.

Avalara Certified Implementation Partners

Encompass Solutions achieved Partner status by completing Avalara Solutions certification training for implementation components.

As a Certified Implementation Partner, Encompass is provided the highest level of support for their Encompass-implemented clients. This includes direct access to senior technical resources.

Encompass also enhances the implementation experience through the use of unique project management templates, Avalara implementation best practices, and access to internal tools to address the needs of  data migration, tax code mapping, and more.

How Customers Benefit

The benefits of being listed among Avalara Certified Implementation are not reserved for Encompass or Avalara exclusively. Customers relying on us for Avalara-related projects enjoy many benefits of the partnership, including:

Confidence – Avalara Certified Implementation Partners pass rigorous training, have access to tools and priority support, so you can be confident when you go live on your automated tax compliance solution.

Customer Experience- Clients benefit from a single point of contact, expert in their ERP or accounting system, familiar with tier business challenges, focused on their business success.

Time to Value – ​Implementing a tax compliance solution can be time consuming and risky. Avalara Certified Implementation Partners are trained to accelerate your time to value while minimizing your firm’s time commitment.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


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The free sales tax risk assessment is a self-serve online resource that helps companies determine where they have triggered economic nexus. Companies answer three questions and receive a PDF report that provides a map and details regarding where they have triggered sales tax obligations and which states they need to watch.

Know Where You’re On The Hook With Our Free Sales Tax Risk Assessment Tool

Get a breakdown of states where you may be obligated to collect sales tax. The free Avalara Sales Tax Risk Assessment can help you determine where your sales have created a need to register to collect and remit sales tax — and guide you on a cost-effective automation solution.

Still Need Convincing To Use This Free Sales Tax Risk Assessment Tool?

Has your company triggered economic nexus, or do you want to find out if it has? Try our tax expert partner’s free online sales tax risk assessment today – Avalara will give you your own report.

Selling into states where you’re not physically located? You might be on the hook for sales tax if you’ve sold a certain dollar amount or volume.

Give our tax expert partner Avalara some of your time, and they’ll give you a customized PDF featuring each state where your sales have likely triggered a sales tax obligation and suggestions on an automation solution with strong ROI.

Get a breakdown of states where you may be obligated to collect sales tax. The free Avalara Sales Tax Risk Assessment can help you determine where your sales have created a need to register to collect and remit sales tax — and why.

43 states tax remote sales so it’s hard for businesses with national (or international) sales to know where they’re required to register to collect tax. Avalara’s new tool provides that clarity. Check it out and let’s talk about automating that knowledge.

About Avalara

Offering end-to-end tax compliance solutions to enterprises big and small, Avalara makes automated certificate validation, storage, and management easy. Avalara’s cloud-based sales tax automation software provides accuracy for all of the 12,000+ tax jurisdictions in the United States. Avalara ensures that automating sales, tax calculation, and maintaining compliance are all possible within your existing ERP, POS, or e-commerce system.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


The South Dakota v. Wayfair, Inc. Supreme Court ruling has a significant impact on businesses all over the United States. The decision effectively overturned a longstanding physical presence rule (Quill Corp. v. North Dakota) for determining when a state can make remote sellers collect sales tax.

The Supreme Court ruled on July 21, 2018 and, as a result, South Dakota is granted authority to impose sales tax obligations on out-of-state transactions.

 

a picture of a gavel on a pile of money as the SCOTUS has ruled on South Dakota v. Wayfair, Inc.

South Dakota v. Wayfair, Inc. will have far reaching implications for businesses operating remotely throughout the United States.

 

In short, sales tax makes up more than 40% of South Dakota’s revenue. The Supreme Court judged it to be unfair that e-commerce and remote sales should be able to avoid sales tax that can generate as much as $14bn for states annually.

The aim of the ruling is to level the playing field between non-collecting e-commerce and remote sellers and brick-and-mortar businesses.

Overturning Quill Corp. v. North Dakota

The decision of this 1992 ruling effectively prevented states from collecting any sales tax from retail purchases made over the Internet or other e-Commerce routes, unless the seller had a physical presence in the state. Due to the rapid expansion and increased prevalence of e-commerce and remote sellers, the decision to exempt these businesses from paying sales tax no longer made sense and worked to the detriment of states in which those businesses conduct sales.

“Because the physical presence of Quill is unsound and incorrect, Quill Corp. v. North Dakota, 504 U.S. 298, and National Bellas Hess, Inc. v. Department of Revenue of Ill., 386 U.S. 753, are overturned.” SOUTH DAKOTA VS. WAYFAIR, INC., ET AL. NO. 17-494. ARGUED APRIL 17, 2018 – DECIDED JUNE 21, 2018

Who Is Affected By The South Dakota v. Wayfair, Inc. Ruling

The recent decision directly affects several nationwide sellers. In particular, the decision affects remote sellers not currently registered with the state who meet threshold requirements. Those threshold requirements are:

  • Annual sales in excess of $100,000 or 200 transactions into South Dakota

The ruling does not affect any business already registered and collecting sales tax in South Dakota. Those businesses will be grandfathered in under the new ruling.

It is important to understand that this ruling applies to both online and offline sales. Anyone conducting cross-border sales with South Dakota is bound by the new ruling.

The ruling does not change what is or is not taxable, either. Rather, it is establishing that a physical presence is no longer the criteria by which the state decides who collects sales tax. Services, not just tangible goods and personal property, fall under the new rule. This ruling will apply to manufacturers and wholesalers who sell direct to consumers, too.

Exemption certificates will be available for those businesses selling business to business (B2B).

South Dakota v. Wayfair, Inc. Setting Precedent and Economic Nexus

To begin, understanding the definition of economic nexus will help businesses realize what this ruling does in terms of setting precedent for other states that choose to implement the same requirements.

an infographic map showing economic nexus states following the South Dakota v. Wayfair, Inc. ruling

Infographic provided by tax compliance experts, Avalara.

Economic Nexus is a tax collection obligation imposed on sellers based on their level of economic activity within a state. Unlike physical presence, it is based entirely on sales revenue, transaction volume, or both.

These rules vary from state to state. With the recent ruling setting a threshold in South Dakota, it will likely lead other states to utilize the precedent and use the same threshold at a minimum.

What You Can Do

First, don’t panic. Contact your SALT CPA or attorney tax advisor and seek counsel on all nexus related requirements and law. If you don’t have one, our partners at Avalara are among the best when it comes to tax compliance and they have an extensive directory of tax experts and SALT CPAs who are able to work with you to get things in order.

You can leverage Avalara Tax Advisory Services (TAS) to:

  • Determine where you have nexus
  • Get ongoing monitoring services to see when new nexus is established
  • Register in new jurisdictions
  • Navigate tasks related to establishing new nexus

For an easy reference, download this 2018 Mid-Year Sales Tax Changes whitepaper from Avalara. Inside, you’ll find many details surrounding recent tax changes that could directly affect your business as well as how you can address the best approach to resolve any identified issues.

About Avalara

Experts in all things revolving around tax compliance Avalara makes tax compliance easy and efficiently, enabling you to do what you do best without constantly worrying about rate changes or filing deadlines.

About Encompass Solutions

Encompass Solutions, Inc. is an ERP consulting firm and Epicor Platinum Partner that offers professional services in business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing the emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Encompass Solutions’ Greensboro office had a great time last night meeting with Avalara, the makers of an amazing automated tax compliance integration, to reconnect after the new year and discuss integration opportunities with clients in need of automated tax compliance in the form of an end-to-end solution.

Update 10/23/2018: We’re hosting a special webinar next week with our partners at Avalara. The South Dakota v. Wayfair, Inc. Supreme Court ruling includes the biggest internet sales tax changes since 1992 and the impacts are being felt by businesses all over the United States. You can find the recording here.

Benefits of Automated Tax Compliance Software

The benefits of automated tax compliance are numerous for businesses across the globe. Encompass and Avalara help integrate this valuable service into business systems of every size that deliver advantages and peace of mind to small and medium businesses every day.

simply put, automating tax compliance and tax processes is essential for increasing accuracy and driving efficiency in today’s competitive marketplace. By incorporating automated tax compliance, your business can improve the level of transparency and conformity to the constantly changing tax laws of your country, state, region, and locality. automated tax compliance will also enable your business to minimize the burdens placed on personnel to keep up with these changing tax rules as well as the labor involved in meeting those requirements for reporting on a rolling basis. This lifted burden frees your teams up to capitalize on improved collaboration and greater creativity in solving more pressing challenges as your business grows and expands.

The savings and extra time provided by implementing automated tax compliance solutions, like those provided by Encompass and Avalara, can link your financial components to the rest of your business in ways that lend greater flexibility, visibility, and accuracy when considering new initiatives and development plans. Get in touch with us to learn more about what this invaluable technology can do for your business.

Automated Tax Compliance Software Meet-up

We make it a point to meet with our partners at least once a year and this time around Melt Kitchen and Bar was the hosting venue, which served up some exceptional appetizers and beverages throughout the evening. The restaurant is known for their crispy Brussels sprouts and decadent hot sandwiches. After ordering a few plates for our own research purposes we can definitely agree they are a must for anyone visiting. Sampling the craft brews on tap alongside good conversation kept the night’s event flowing smoothly at this local hot spot many of us will be revisiting in the future.

A picture of the Encompass Solutions team and Avalara reps sitting down for drinks and food at melt kitchen and bar in Greensboro, North Carolina.

Encompass And Avalara Get Together To Share Drinks And Appetizers While Talking Taxes.

All-around the evening was a success with some great plans discussed on how to further streamline automated tax compliance for mixed mode and make to order manufacturers. Both companies are looking forward to another year of productive collaboration. Cheers to a new year with Avalara!

About Avalara

Offering end-to-end tax compliance solutions to enterprises big and small, Avalara makes automated certificate validation, storage, and management easy. Avalara’s cloud-based sales tax automation software provides accuracy for all of the 12,000+ tax jurisdictions in the United States. Avalara ensures that automating sales, tax calculation, and maintaining compliance are all possible within your existing ERP, POS, or e-commerce system.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


For those unfamiliar with the Craft Beverage Modernization and Tax Reform Act, the recently passed tax reform applying to alcoholic beverage manufacturers, the short of it is that the legislation offers two years of heavy relief from federal excise taxes applied to one of the most severely taxed industries in the US. So, what are craft brewers, distillers, and vintners going to do with it? For most, the word is grow.

The tax breaks will translate into substantial annual savings for these craft beverage makers, between $20,000 and $100,000 to be more precise, and allow them to hire more staff, expand operations, and invest in marketing to build their brands.

Brewer Benefits

For many of the nation’s thousands of small breweries, the tax break of $3.50, effectively halving the previous $7.00, on the first 60,000 barrels(BBL) produced for domestic breweries producing less than 2 million BBL annually, will be a desperately needed lifeline. To put things into perspective, that $7 has been anywhere from 15 percent to 25 percent of the total cost of that BBL.

a picture of two pint glasses filled with beer.

For many of the nation’s thousands of small breweries, the tax break of $3.50 effectively halves the previous $7.00.

Competing with the likes of D. G. Yuengling & Son, Inc, Sierra Nevada, New Belgium, and Boston Beer Co., mom-and-pop and Main-street brew operations have had a hard time coming up in an industry that has seen improved performance year on year but is at the same time contracting. An extra $20,000 going towards a brewpub can provide another part-time employee, new vats, advertising, and a host of other potentially powerful tools to aid expansion. Some operations will transcend the modest manufacturing operations to the regional scale and evolve into full-blown enterprises as a result. With new enterprise comes new concerns, including accounting, production, distribution, and, perhaps the most significant hurdle of even the most robust ERP solutions, tax responsibilities.

Distiller Details

The same positive outlook is true of the States’ 1,500 craft distillers who are already seeing big benefits from the change. The tax cuts bring federal excise taxes for distillers down significantly from $13.50 to $2.70 per proof gallon, applying to the first 100,000 gallons per year for a two-year period. Used to its maximum benefit, the savings translates to $2.16 million. With taxes on distilled spirits among the highest in the US, reaching more than 50 percent of a product’s purchase price in many cases, the relief is more than welcome from the craft distillers of America.

a picture of two glasses of whiskey, neat.

Used to maximum benefit, the savings in taxes translate to $2.16 million annually for craft distillers.

The industry workforce has grown to 20,000 with a cumulative investment total of $600 million in the last decade alone. Compare that to Jack Daniel’s Distilleries, which blows through that 100,000-gallon tax break in one day of production, and the future is only looking brighter for the craft distillers of America.

Vintners Toast Approval

Wine is another beneficiary of the latest excise tax reform, albeit with a slightly more complicated structure. Wine is taxed based on alcohol content with new rates applied to those containing 16 percent or less of alcohol, 16 percent to 21 percent, and 21 percent to 24 percent. These categories are taxed 21-cents, 31-cents, and 62-cents per bottle respectively. The benefits are a bit easier to see with a broader view. Let’s first take the initial 30,000 gallons a winery produces. Each of these barrels receives a $1 credit per gallon. The following 100,000 gallons receive a 90-cent tax credit and a 53.5-cent credit is applied to the next 620,000 gallons. All wine produced after that is taxed at the standard rate. The new tax rates are a far cry better than those previously afforded to the small wineries of America and when used to their fullest potential can provide craft vintners more than $450,000 in tax credits.

a picture of two glasses of white wine against a sunset backdrop.

When used to their fullest potential, the tax breaks can provide craft vintners more than $450,000 in tax credits.

With the results of the tax reform already taking effect, it’s not hard to see why the craft beverage manufacturers of America are celebrating. This reduction of excise taxes will afford the burgeoning craft beverage industry considerable capacity for expansion over the next two years and we can’t wait to see where the influx of capital will take up and coming enterprises.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Following the most recent tax reform legislation passed by the federal government, manufacturers of all sizes have enjoyed success in their sectors. This week, White House Press Secretary Sarah Sanders delivered a daily press brief that highlighted how policies outlined in the new tax law have had a positive impact on businesses. One such success story came from Pittsburg, PA’s H&K Equipment.

A picture of literature that details economics and taxes.

Recently Passed US Tax Legislation Has Had A Favorable Impact On The Nation’s Manufacturers.

H&K Equipment’s Story

The company was founded in 1983 by three entrepreneurs and run out of a garage. Today the company has grown to include 200 employees providing services in selling, renting, and servicing lift trucks, container handlers, railcar movers, personnel carriers, yard trucks, and industrial sweeping and scrubbing equipment.

According to company representatives, 2017 had been the company’s best year to date. The success has been attributed directly to the White House’s position on economic and job growth. Tax cuts, in particular, allowed the company to expense new equipment they acquired within the same year and return 50% more on investments made into the company when compared to 2016. According to Sanders, “When they buy more trucks and equipment for their rental fleet, they hire more technicians to service them, buy more service vehicles to transport those techs from customer site to customer site, and buy more parts from their suppliers to keep the rental fleet running. All of this economic activity spurred by the tax bill will result in more jobs, higher wages, and a brighter future.”

A picture of H&K Equipment Headquarters

H&K Equipment’s Success Story Is Just One Of Many Following The Recently Passed US Tax Legislation. Photo Provided By: H&K Equipment

There are currently 566,000 employed by the manufacturing industry in Pennsylvania alone, with an average annual salary of $72,500 for workers. The state generates $85.13 billion according to a 2015 report on manufacturing output. These growth- and worker-focused policies coming from the current US Administration are leading to big benefits for manufacturing outfits in Pennsylvania and across the country. Beyond mid-sized operators like H&K, conglomerates, including AT&T, Boeing, and Waste Management, have all attributed increased commerce and benefits to employees as results of tax reform. 2018 is expected to usher in further progress in US manufacturing investment, expansion, and employment.

US Manufacturing And Production Make Gains In Q4 Of 2017

2017 was a booming year for manufacturing with overall production rising for a fourth consecutive month in December. That resulted in a 2.4% increase year-over-year according to the Federal Reserve. December’s gains dripped slightly from November’s numbers, but the trend gleaned optimism from industry experts and professionals alike. The increase in production for 2017 has been the highest gain since 2014.

A picture of workers and equipment in a manufacturing facility

Manufacturers Big And Small Are Reaping The Benefits Of More Favorable Tax Laws that Facilitate Expansion In Investment And Hiring.

The report from the Federal Reserve released this month pulled data from industrial production, manufacturing, durable goods, and nondurable goods. The biggest gains came from industrial production, which jumped 1.6% from September to October, and nondurable goods, which enjoyed the lion’s share of progress in recovering 2.5% from a September low to its highest show in October.

In related news, overall industrial production was up nearly 1% in December, totaling a 3.6% rise for 2017. Peripherally, utilities and mining rose 5.6% and 1.6%, respectively.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Quick: Think of something scarier than navigating and understanding the tax code! Okay. Are you done? If your top three looks like ours—which are navigating and understanding the tax code, giant spiders, and regular-sized spiders—then we’ve got good news for you! Here’s a hint: it comes in the form of a business software tax deduction.

Epicor ERP Qualifies For A Business Software Tax Deduction

One of the things we’re not afraid of is finding ways to make our ERP systems affordable enough for any company. IRS Section 179 is one of the ways we do this: It covers all the software that you bought for your company in a tax year. It’s right there on line 5 of Eligible Property. That means you can deduct the full purchase or leasing price directly from your gross income. This was implemented by the U.S. Government to encourage businesses to buy equipment from other businesses, while investing in themselves at the same time. It’s a fantastic reason and a serious incentive to upgrading your ERP system.

an image of an office worker filling out forms to collect his company's Business Software Tax Deduction.

How To Collect Your Epicor Business Software Tax Deduction

To get into a little bit more detail, the software you purchase has to meet all of the following specifications:

  1. The software must be financed (only specific type leases or loans qualify), or purchased outright by you.
  2. The software must be used in your business for income-producing activity.
  3. The software must have a determinable useful life.
  4. The software must be expected to last more than one year.

In addition, these three specific stipulations must be met:

  1. The software must be readily available for purchase by the general public.
  2. The software must be subject to a non-exclusive license.
  3. The software must not have been substantially modified. Basically, the software can’t be custom code.

Now for some more good news: We know about some software that fulfills all of Section 179’s requirements. It’s a brand new Epicor 10 system, installed and maintained by Encompass Solutions, Inc, of course.

Contact your accounting professional today to see how implementing Epicor 10 will allow you to take advantage of IRS Section 179 tax deduction.

There is bad news, though: We can’t do anything about the spiders.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.