I make monthly prepayments; which frequency should I select?

There are a few states (California, New York and New Jersey) that require high volume sellers to file sales tax returns on a quarterly basis (which means you report sales data and jurisdiction breakdowns every 3 months) but they also require sellers with this frequency to make an estimated prepayment the first two months of each quarter.

  • Essentially, you still need to file and remit your sales tax returns monthly, but you are required to recap the quarterly payment at the end of the quarter in a quarterly filing every 3 months as well.

This creates a bit of confusion when you need to select your Filling Frequency in the State Settings, and choosing Monthly or Quarterly isn't completely accurate for this scenario as your Filing Frequency in your AutoFile enrollment form must be an exact match with the frequency the state assigns you.

  • For this reason, if the state assigns you a monthly prepayment frequency, you should select the "Quarterly Prepay - quarterly remitted monthly" option in your State Settings for California, New York and New Jersey.

Related: California Sales Tax Prepayments Explained