Articles on: Sales Tax Autofile

Adding Payment Method

Payment Method in Sidr Tax

A valid payment method is required for the Registration and Autofile feature. The payment method is used by the state Department of Revenue for registration and tax remittance purpose only.

Please note that Sidr Tax app charges are included in your monthly Shopify subscription bill. We do not use your provided payment method for any app charges.

Steps to Add Your Bank Account on Sidr Tax

To ensure that your tax payments are processed smoothly and efficiently, adding your bank account to your Sidr Tax profile is straightforward. Here’s how you can do it:

Step 1: Navigate to the Sidr Tax Platform
Log in to your Sidr Tax account. Once inside, look for either the 'Registrations' page or the 'AutoFile' page. You can find these options in the left-hand panel of the dashboard.

Step 2: Access Payment Methods
At the bottom of either the 'Registrations' or 'AutoFile' page, you will see an "Edit" option. Click on this to proceed.

Step 3: Update Your Payment Information
In the editing section, you will have the option to add or update your payment method. Select the option to add a bank account. You will need to provide your bank account details, including the routing number and account number. More information on bank account requirements here.

Step 4: Save and Confirm
After entering your bank account details, ensure that all the information is correct. Save your settings.

Bank Account vs. Credit Card

When managing tax payments, the choice of payment method can significantly affect convenience and costs. At Sidr Tax, we recommend using a bank account over a credit card for several important reasons. Understanding these reasons will help you streamline your tax payment processes and potentially save money.

Acceptance Across States: Not all states accept credit card payments for tax obligations. This inconsistency can complicate the payment process if you operate in multiple states. Bank account payments (ACH transfers), however, are universally accepted for tax payments, providing a consistent and reliable method regardless of the state.
Additional Fees with Credit Cards: Many states that do accept credit cards for tax payments impose an additional processing fee. These fees can vary but typically range from 2% to 3% of the payment amount. Over time, these fees add up, especially for businesses with substantial tax liabilities. Using a bank account avoids these extra costs, making it a more economical choice.

If you would like to learn more about this topic, please review this article.

Updated on: 05/08/2024

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