Recently, we attended the 2016 CRTRA Conference in Vail, Colorado. Along with the beautiful scenery, we were very impressed with the level of engagement at the Chain Restaurant Total Rewards Association and thoroughly enjoyed our time talking to people throughout the industry.
We understand that Fair Labor Standards Act (FLSA) is a hot topic right now and switching to e-statements is a goal that many companies want to implement soon. Moreover, while they recognize they have ACA obligations, it’s not a key focus for their Benefits Directors with those other competing priorities and plan to revisit this issue next quarter. With big, complex employee populations, many of them acknowledged they faced challenges in this first year of reporting.Hopefully they keep in mind that compliant ACA reporting to the IRS is imperative for their business and our Sovos ACA solution can help accomplish their form mailing and transmittal needs.
Other Sovos Tax Solutions for CRTRA Attendees and Companies Throughout the Food Service Industry
One goal for our attendance at CRTRA was to help educate the industry on how Sovos has become a leading one-stop center for all tax and business-to-government compliance needs, including sales and use tax calculation and filing for the food service industry. In the US, there are over 1,000 taxing jurisdictions that have special meals tax rates and rules that are separate and distinct from sales tax, and any of these rates or rules can change at any given time.
These rules are so complicated that many states and the IRS have lengthy guides to help restaurant owners achieve compliance issued through government agencies and departments, like California’s Board of Equalization.
In an article from Investopedia, the future looks bright for one growing segment of the restaurant industry, the “fast casual” restaurant. A study completed in 2014 found that fast casual restaurants totaled $21 billion in revenue, have been experiencing higher sales and had an 8% increase in traffic. Such growth will lead to entry into tens, if not hundreds, of new taxing jurisdictions for these businesses annually, instantly creating nexus and complex sales tax obligations for themselves.
Moreover, according to The National Restaurant Association, in 2015, the restaurant industry had sales of $783 billion, which accounted for 4% of the GDP and a growing portion of this revenue coming from the fast casual market.
If you own or operate a fast casual or other restaurant establishment, and need help with your sales and use tax determination and filing obligations, we encourage you to download our Sales Tax Restaurant Smart Brief today for helpful information and a beneficial solution.
Here at Sovos, our job is to help you stay compliant with all your tax obligations. We encourage you to sign up to receive our blog for helpful and timely webinars, events, news, and other important updates. Operate with confidence knowing Sovos is working hard for you as a business-to-government compliance industry leader. We enjoyed our time at CRTRA and can’t wait to go back next year!
The post CRTRA Conference Recap: FLSA, ACA Reporting and Sales Tax Challenges appeared first on Sovos Compliance.
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Sovos is a leader in global tax, compliance and business-to-government reporting software, safeguarding businesses from the burden and risk of compliance in thousands of tax jurisdictions around the world.More Content by Sovos -