How does remittance work?

Introduction

Anrok handles the remittance process for your current-period US returns from start to finish — calculating the tax due, debiting your bank account, filing the return, and remitting payment to the jurisdiction on your behalf before the due date.

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Your sales tax remittances through Anrok are governed by our Remittances Services Agreement. We recommend reviewing it to understand how ACH remittances and related fees are handled. You can find it in Anrok's Privacy & terms.

 


 

Remittance procedure

Here's a summary of the remittance processing Anrok handles when filing your current-period US returns on your behalf:

Calculation ACH debit Filing Remittance

Anrok calculates the return's tax due amount based on the transactions included.

When the return is ready for review, it's listed on the Returns & payments page with a ready for review status status. You'll have until the return's review-by date to review the tax due and edit the transactions included before it's approved for filing. See Review returns ready for filing.

Once the return has been approved, it moves to an approved for EasyFile status status.

After the return is approved for EasyFile status and the review-by date has passed, Anrok debits the return's tax due amount — less advance payments, jurisdiction discounts, and other adjustments — from the bank account listed on your Settings page via ACH, and the return moves into a CleanShot 2024-01-09 at 11.17.30@2x.png status. This amount debited is then listed as the payment amount.

Anrok holds the debited funds on behalf of your business until they're remitted to the jurisdiction. A separate withdrawal is made for each return, with the memo field labeled by jurisdiction, so a single filing period can produce several debits on your bank statement. During this time, you may also see draft filings created in your sales tax account with the jurisdiction.

If your bank account information has changed or you'd prefer to use a different account, we recommend updating your details immediately to ensure a smooth remittance process. See Change your bank account.

Once the return is fully funded — via ACH debit of your bank account — it's added to Anrok's filing queue. Our filing team then submits the return to the jurisdiction by the due date.

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After the return has been submitted, it moves to a filed status status on the Returns & payments page. You can then review essential filing details (i.e., tax due, payment amount, state discounts, etc.). See Best practices for reviewing filed returns.

After Anrok has submitted the return through your sales tax account, the tax authority will debit the tax due from the funds held on your behalf.

Jurisdictions can take some time to initiate and apply the payment, so you may see a return marked as filed status in Anrok before the payment posts to your sales tax account. This is an expected behavior as remittance processing times vary by jurisdiction.

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Anrok processes sales tax remittances as ACH entries on the Customer's behalf through Anrok's Bank Partner and the ACH system operated by the National Automated Clearing House Association (NACHA). Anrok is not a bank.

 


 

Remittance process FAQs

We understand you may have questions related to remittance in Anrok. Many of these questions are common, so let's work through some of them together:

Why is there a gap between when Anrok debits my account and when my return is filed?

Once the return has been approved for EasyFile status and the review-by date has passed, Anrok debits the payment amount and holds those funds on your behalf. Once the return is fully funded, our filing team then submits the return to the jurisdiction ahead of the due date — which may fall several days after the debit occurs. As a result, the debit and the filing typically won't take place on the same day.

Why does my return show as filed but the payment hasn't posted with the jurisdiction yet?

Anrok remits tax due to the tax authority after the return has been submitted. Jurisdictions can take time to receive and apply the payment, you can expect a lag between when a return shows as filed and when the payment posts on your sales tax account in the jurisdiction.

Why do I see multiple debits for a single filing period?

Anrok makes a separate withdrawal for each return, with the memo field labeled by jurisdiction. If you have returns due in more than one jurisdiction, you'll see a separate debit for each.

How can I change the bank account used for my remittances?

Update your bank account details on your Settings page, ideally before your next return is approved, so the change takes effect for the upcoming remittance. See Change your bank account.

How does remittance work for past-period returns?

Historical returns are remitted through a different process than standard filings. Rather than Anrok debiting your bank account and remitting payment on your behalf, all historical return payments are debited directly by the jurisdiction. Accordingly, you will need to ensure that any ACH debit blocks are removed from the applicable bank account prior to filing. If a debit block is in place, the relevant jurisdiction ACH IDs must be added to your account's allowlist to authorize payment. See Jurisdiction ACH ID list.

Additionally, in some states, there will be two debits: one for the initial tax due and the second for any penalties and interest, as some states calculate penalties 2-3 business days after filing the return.

Please note that failure to take the necessary steps to enable payment may result in additional penalties and interest being assessed by the jurisdiction. Anrok will not be responsible for mitigating any penalties or interest incurred as a result of a failed payment. See Overview of historical return filing.

 


 

Remittance management resources

These articles provide additional recommendations for managing remitting jurisdictions, reviewing your returns, and handling refunds and credits that can affect the remittance process: