Overview

Does your bank or business provide services to help businesses pay state and local taxes electronically? If so, you know that there is a wide range of ACH credit (and debit) payment initiation services that must conform to taxing authority routing/format requirements. The problem is that tax authorities sometimes enact changes (e.g., add a new tax type) to these requirements, and then only notify affected businesses about the changes. The lack of direct communication to banks and payment processors about these changes adds risk, costs, and inefficiencies to the process.

Find out about child support state disbursement unit (SDU) banking changes.

What is the state tax change portal?

The State Tax Change Portal - by NACHA - was developed to:

  • Improve the timeliness and quality of communications between states and service providers regarding changes that affect ACH payments for business taxes
  • Provide more lead-time for banks and service providers to implement changes
  • Reduce risk and cost associated with misdirected payments and returns

How Can Banks and Payment Processors Benefit from Using the State Tax Change Portal?

  • Receive timely notices about state tax payment changes
    • Banks and processors often do not learn about payment changes until after their business customers are notified by the state tax authorities. The portal offers states the ability to communicate to all subscribed banks and payment providers at the same time they notify business tax payers. The Federation of Tax Administrators (FTA) will verify the authenticity of all notices before they are disseminated to subscribers.
  • Update software more quickly, decreasing service disruptions
    • Receiving notifications from the portal should provide more lead-time for making any required software changes.
  • Reduce customer service costs
    • Banks and payment processors frequently find out about tax payment changes from business customers, which cause a number of customer service issues. State tax authorities that use the portal will be alerting you at the same time they are notifying affected business.
  • Minimize payment return risk
    • Electronic tax payments that have incorrect information and can cause delays, and may be returned or rejected. Most importantly, you want to provide a service that assures your business customers that their tax payments can be delivered accurately and on-time.
  • Use the easy registration process to receive email notices.
    • You can register to receive state tax payment change notifications by simply providing the information in the registration form.

Why choose EBIDS? Trust EBIDS to lower costs and extend the reach to customers. Some benefits to Financial Institutions are: Transaction Revenue, Extended ACH Services, Increased Reach, Reduced Costs, Accelerated Time to Market.
Transaction Revenue, Extended ACH Services, Increased Reach, Reduced Costs, Accelerated Time to Market. Trust EBIDS to lower costs and extend the reach to customers. Some benefits to Financial Institutions are: