For financial institutions dealing in US equity based derivative contracts for non-US clients, Meritsoft’s 871(m) tax module:
- Simplifies and automates complex 871(m) tax calculations.
- Ensures accuracy and quality of 871(m) tax reported numbers.
Unlike other vendors in the market, 871(m) is the only solution configured to:
- Facilitate proactive case management.
- Streamline workflow.
- Adhere to regulatory compliance demands.
- Automate the processing of tax payments and settlement of balances.
As a result you can be assured of accuracy of 871(m) tax payments. Furthermore you will not overpay or under recoup.
Reduce time lost to 871(m) tax preparation and the number of manual errors
Guide operations teams through a configurable STP workflow process that manages:
- Authorisations: Generate receivables so that you can recover tax. Also generate payables to the relevant tax authorities.
- Approvals: Generate notifications/statements to clients.
At the same time appropriately realise, document and maintain 871(m) tax efficiency opportunities.
Ensure accuracy and quality of 871(m) tax reported numbers
Secure full visibility of your 871(m) tax status.
- Capture IRS in-scope transactions that could give rise to 871(m) tax.
- Identify transactions and baskets that meet relevant criteria.
- Source/hold relevant static (components, deltas, div events etc.)
- Enable breaking of indexes, by weighting & holding expanded data.
- Reference relevant tax rate static including WHT/DTT.
- Calculate “Dividend Equivalent WHT” based on IRS rules.
- Determine combination trades across previous 2-day window.
- Hold delta history for combined trades.
Meet audit, compliance and risk requirements
Straight through processing workflow provides a comprehensive audit trail.
- Leverage feed deductions to annualised tax reporting.
- Possess daily accruals.
- Track payables and receivables.
- Track client money.
Streamline 871(m) reporting and forecasting
Reporting in 871(M) brings you:
- Transparency and auditability.
- Management information for client servicing and regulatory needs.
Be able to fully address your business needs
- Provide multi-entity support for 3rd party processing (e.g. Custodians, Brokers).
- Keep up to date with changing policies and procedures.
Address specific operational needs by easily adding on modules:
Manage payments, postings, P&L calculations and SSIs. Modules can be purchased separately or added as your business needs grow.
Get set up quickly
871(m) is a module of Transaction Tax Manager. Like Transaction Tax Manager, 871(m) is a ready-made solution, readily available, is adaptable and can be implemented within your existing infrastructure.
This means in no time your processing of 871(m) tax will be automatically captured and processed, so you can concentrate on your core business activities.
Trouble free maintenance
The 871(m) module utilises existing feeds/data. Furthermore it can be administered and supported by non-IT professionals.
This means you are guaranteed trouble free maintenance and IT resources will not be burdened.
To learn more about our 871 (m) solution please Contact Us now.
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