(plus taxes and fees)
On Sun, Jul 28, 2013 at 5:17 PM, Jeremy <[email protected]> wrote: > Josh - $21.95 residential and $29.95 business. > > > On Sun, Jul 28, 2013 at 5:06 PM, Fred Goldstein <[email protected]>wrote: > >> On 7/28/2013 2:20 PM, Jeremy wrote: >> >> So while I am de minimus should I not be charging a USF fee? You stated >> that I cannot charge more than I pass along but if I pass along nothing >> until I am at the 10K mark then am I not supposed to bill it until that >> point? >> >> >> Carlos has good advice -- consult a lawyer. (I'm not a lawyer but I play >> an engineer on TV.) I just checked with one who could not render actual >> "advice". Rather, he explained, "This is one of the mysteries of USF." >> >> The FCC forgot about this case when they did the rules. So the usual >> practice seems to be to collect the fees. You might after all be passing >> them along to your wholesale provider, who is charging USF to you. But if >> you do go over the $10k limit, then you could owe retroactively, and in >> that case you want the money in the bank! So unless they've clarified this >> in the instructions on the Form 499s (be warned; they do that sometimes, >> and you don't know the rule until you read the new fine print), you can >> pass along the fee you would be collecting under safe harbor, and apply it >> to the USF charges you're being hit with. >> >> I don't think these crazy fees are a reason to avoid voice services, but >> they are a pain to administer. The FCC is terrible about writing clear >> rules. >> >> >> >> On Sun, Jul 28, 2013 at 9:42 AM, Fred Goldstein <[email protected]>wrote: >> >>> On 7/28/2013 12:46 AM, Jeremy wrote: >>> >>> From what I read it seems like you can collect whatever you want >>> directly from your customers but it may be considered as income and taxed >>> as such. So you can't really pass it on as a direct fee and bypass your >>> income tax liability for it. >>> >>> >>> No. Federal billing rules say that you cannot collect more on your >>> retail bill for FUSF than you pass along. No markups allowed. Most of the >>> other charges can also be passed along one for one, but state rules could >>> vary. >>> >>> But the rate is not exactly what you think. The Federal USF rate is >>> calculated as a percentage, changed quarterly (it has gone over 17%), of >>> your interstate telecommunications service billing. If you are providing >>> local telephone service, that line item is not subject to USF as it is >>> intrastate, not intersate. Internet access is not subject to USF as it is >>> information service, not telecommunications service. The tax was meant to >>> apply to long distance calls, which were a lot of money back in the day. >>> >>> If you are (as is the norm nowadays) providing a service that does not >>> charge explicitly for interstate long distance, then you have two options. >>> There is a "safe harbor" of 64.9%, wherein that percentage of the total >>> phone package is deemed interstate. So if you sold it for $10/month, the >>> tax would be applied to $6.49 of it. This number was computed back when >>> VoIP services were primarily used as cheap dial-around long distance, not >>> as primary lines, so the "PIU" (percentage interstate use -- this number >>> comes up a LOT in telecom billing) was high. >>> >>> You can also compute what percentage of your calls are actually >>> interstate, and pay USF on that percentage of the bill. This involves >>> filling out the Form 499-Q's correctly, but it is the norm nowadays. >>> >>> Bear in mind that there is a "de minimis" rule. If you would owe less >>> than $10k/year, then you only file Form 499-A (annual, vs. quarterly), and >>> don't pay anything. BUT you then are treated as a retail customer of your >>> wholesale provider(s), and *they* collect USF on what they bill you. If >>> you are no de minimis, and do actually pay USF, then you tell that to your >>> providers, who have to verify it against FCC records, and then they don't >>> charge you USF. It's sort of like a retailer's exemption on sales tax; >>> it's only collected once. Note that this whole system is on the docket at >>> the FCC and they're still thinking about how to revise it, but don't seem >>> to have a consensus, so they're just putting it off. >>> >>> >>> >>> On Sat, Jul 27, 2013 at 10:26 PM, Chris Fabien <[email protected]>wrote: >>> >>>> That looks about right, it varies by state/locality of course. We >>>> collect Federal USF, State use tax, state and county E911. The USF you get >>>> to pocket until your required contributions are $10k/year - under that you >>>> are considered "de minimus" and just have to file the annual form. >>>> >>>> When we set up our billing the Telecom Relay Fund passed under our >>>> radar so now we're just paying for that out of pocket. I'm not sure if you >>>> are allowed to collect that specifically from your customers as well. >>>> >>>> >>>> On Sun, Jul 28, 2013 at 12:20 AM, Jeremy <[email protected]>wrote: >>>> >>>>> I am attempting to figure out all of the taxes for VoiP and the >>>>> main thing that has me confused is the Universal Service Fund. It seems >>>>> that my state (Utah) has a USF of 0.45% >>>>> http://www.psc.state.ut.us/utilities/telecom/documents/Rule%20746-360%20amendment.rtf >>>>> >>>>> >>>>> Then it also seems like the Feds want 15.1%?? That is huge! >>>>> http://www.fcc.gov/encyclopedia/contribution-factor-quarterly-filings-universal-service-fund-usf-management-support >>>>> >>>>> Then there is sales and use tax of >>>>> *State Sales & Use -* 4.7% >>>>> *Municipality Sales & Use - *varies - see >>>>> http://tax.utah.gov/salestax/rate/13q3combined.pdf >>>>> >>>>> Then we have E911: >>>>> >>>>> *E911 State -* .08 >>>>> *E911 County -* .61 >>>>> *Poison Control -* .07 >>>>> *-------------------------------* >>>>> *Total for E911 -* .76 >>>>> >>>>> Then, since October 2011 we are also liable for the *Telecommunications >>>>> Relay Fund* - .06 >>>>> http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-11-150A1.pdf >>>>> >>>>> _______________________________________________ >>>>> Wireless mailing list >>>>> [email protected] >>>>> http://lists.wispa.org/mailman/listinfo/wireless >>>>> >>>>> >>>> >>>> _______________________________________________ >>>> Wireless mailing list >>>> [email protected] >>>> http://lists.wispa.org/mailman/listinfo/wireless >>>> >>>> >>> >>> >>> _______________________________________________ >>> Wireless mailing >>> [email protected]http://lists.wispa.org/mailman/listinfo/wireless >>> >>> >>> >>> -- >>> Fred R. Goldstein fred "at" interisle.net >>> Interisle Consulting Group >>> +1 617 795 2701 >>> >>> >>> _______________________________________________ >>> Wireless mailing list >>> [email protected] >>> http://lists.wispa.org/mailman/listinfo/wireless >>> >>> >> >> >> _______________________________________________ >> Wireless mailing >> [email protected]http://lists.wispa.org/mailman/listinfo/wireless >> >> >> >> -- >> Fred R. Goldstein fred "at" interisle.net >> Interisle Consulting Group >> +1 617 795 2701 >> >> >> _______________________________________________ >> Wireless mailing list >> [email protected] >> http://lists.wispa.org/mailman/listinfo/wireless >> >> >
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