If are you running a trucking company, then you know what is IFTA in USA? Most of the truckers do not know how it’s applied to your fleet? Being a trucker, you need to know what IFTA is in the details. The full form of IFTA is The International Fuel Tax Agreement. It is an arrangement made between the U.S and the Canadian Provinces. According to the IFTA, every member state will get fuel tax revenue for the motor carrier that travelled in that jurisdiction. It does not matter if you have purchased the fuel in that member state or not.
Heavy Highway Use Tax is a fee assessed on heavy vehicles annually. To register a vehicle classified as a heavy highway motor vehicle on his title, one needs to pay this national tax. The Heavy Highway Use tax is collected on the vehicles having a gross weight of 55,000 or more. The vehicles that operate on public highways and have travelled a distance of 5,000 miles in a year. The taxes are collected once a year. It is used for the building and maintenance of the highways. Form 2290 is used to cover the heavy highway use tax. The ideal set of tools and software is always helpful to run a trucking company. IFTA reporting is the job which generally people don’t love to do. With the right IFTA fuel tax reporting software, one can easily track the mileage and fuel each nation.
This software prevents the company to postpone IFTA reporting deadlines. But choosing the right software in this crowded marketplace is a big challenge. Below are the best ways that you can adapt to select the software. The first and foremost thing the truckers look in any software is its user-friendliness. The drivers and lots of other staffs are not tech-savvy. No special seminar or training is required to operate the software. You require a tool that will automatically compute your IFTA taxes. So, it will help you with incorrect IFTA reporting.
The fuel tax software should be capable of automatically renewing the IFTA rates under every jurisdiction and quarter. The software also must have the capability of automatically comparing the fuel prices and can be available for you to download. Another feature you should look at the IFTA tax reporting software is its accuracy to generate reports. Generally, standard software is accurate and precise and provides error-free outcomes. In those cases, the system should not be frozen and must be flexible enough for consumer input and alterations. Data is collected manually or from software needs to be added to IFTA fuel tax software, at an initial time.
The IFTA reporting tool lets you monitor driver’s miles to get complete information about the fleet action and current tax liability. A strong IFTA fuel tax reporting software can monitor lots of information. The information includes miles travelled, fuel usage, fuel purchased, credits due together with laden and unladen weights along the way. IFTA rates vary across all jurisdiction and so does the components. Generally, the truckers find it hectic and difficult to do the calculations manually. This helps in getting accurate IFTA reports. IFTA tax reporting software you are likely to choose must be able to do the complex mathematical calculation. Your IFTA reporting software must have to the capability of organizing data so that the user does not get confused. It is possible to consider IFTA fuel tax software for your company to save time, money and efficiency. It will turn your biggest headache of IFTA reporting into an easy and straightforward process.