Remit Policy
Greenberg, Grant, & Richards, Inc.'s remit policy begins with the acceptance of payment from our client's debtors. Payments are accepted in cash, cashier's checks, company checks, fax checks, ACHs, and credit cards. Each payment accepted is immediately deposited within a Trust account to ensure the utmost of integrity in handling client funds as well as avoid the commingling of GG&R funds.
Once collected, our remit policy is one of the most aggressive policies in the industry. Stringent guidelines have been established for various methods of payments from debtors. Because each methodology of payment requires different holding times due to the Federal Reserve Clearing House system, we have designed our proprietary software to accommodate each type of payment transaction. For instance, for an accepted ACH payment from a debtor, the banking system requires a five day hold on the funds. Immediately upon the lapse of this five day period, our system releases the funds for remit to our client.
After release of funds, GG&R provides remit to our clients on weekly, bi-weekly and monthly intervals. These intervals are based on criteria such as amount of placements by dollar amount, number of debtors placed and length of time as a client.
We understand the importance of our clients receiving their funds quickly and correctly. Our Finance Department works closely with many of our clients to meet and exceed their expectations.
Our Sales Tax Policy
There have been many questions surrounding the application of charging sales tax for services we provide at Greenberg, Grant & Richards, as well as the collection industry as a whole.
We have been working diligently with the State of Texas Comptrollers office to provide clarity to the situation and to ensure that we administer the law according to their requirements in a manner that is fair and consistent.
As you probably know, charging and collecting a State Sales Tax is strictly a pass-through transaction from our clients to the respective State. It actually ends up costing administrative and support time to accomplish and account for the tax and to file the appropriate tax returns in a timely manner.
Here is a synopsis of the Texas State Comptroller's office rulings: (Rule 3.354 of the Texas Administrative Code)
GG&R must charge sales and use tax under the following scenarios:
- The last known address of the DEBTOR in the clients records at the time the account is placed is in TEXAS.
- The CREDITOR is located in Texas "or" is engaged in business in Texas (Tax Code 151.107)
The second statute is obviously extremely broad in scope and I believe subject to different interpretations. Again, we are working with the Comptrollers office to ensure that we not only protect ourselves from potential liability, but that most importantly, we do not put our clients in a position of future liability due to audits or investigations. Remember that even if we do not charge sales tax on a taxable transaction that the State of Texas provides that the client is still liable for the tax due.
