Wholesale Carrier Services, Inc. (“WCS”) rates and charges for WCS Services are exclusive of the following taxes, fees and surcharges. These charges do not contribute toward the any monthly or annual volume or revenue commitments and are not discountable.
Taxes, fees and surcharges include, but are not limited to the following:
A gross receipts tax, a license tax, or other tax-like charge on WCS’s gross receipts, revenues or operations; and
All taxes, tax-like charges and the tax-related surcharges are referred to collectively as "Tax(es)."
WCS will assess all applicable taxes and the customer will be responsible for paying these taxes.
If WCS collects Taxes and a challenged Tax is found to have been invalid and unenforceable, and if the amounts collected were retained by WCS or delivered over to the jurisdiction and returned to WCS, WCS, in its sole discretion, may reduce service rates for a fixed period of time in the future in order to flow-through to customers an amount equivalent to the amounts collected, credit or refund such amounts to affected customers (less its reasonable administrative costs), or negotiate an arrangement with the jurisdiction to provide a future benefit for customers in that jurisdiction.
WCS reserves the right to collect any applicable Taxes retroactively.
If the Customer provides WCS with a duly authorized exemption certificate, WCS will exempt the Customer in accordance with law, effective on the date WCS receives the properly executed certificate. Note that some charges that are not eligible for exemption.
More detailed information regarding applicable federal, state and local taxes, fees and surcharges is provided below:
Federal, state and local governments assess a variety of taxes and surcharges. WCS collects the required taxes and remits the appropriate amounts to the taxing agencies. There are several types of federal, state and local taxes, fees and surcharges that apply to the Services sold by WCS including:
The Federal Universal Service Fund (FUSF) surcharge is billed at the FUSF rate established by the FCC. Universal Service is a Federal Communications Commission (FCC) program designed to ensure affordable access to telecommunications services to low-income customers, rural areas, school and libraries, and rural healthcare facilities. The FCC is the agency responsible for the regulation of domestic interstate and U.S.-to-international telecommunications services.
The rate changes on a calendar quarterly basis. It is a regulatory charge, not a tax.
Effective Jan. 1, 2018, the FUSF surcharge is 19.5% and applies to telecommunications services subject to direct regulation by the Federal Communications Commission (FCC), as well as to interconnected VoIP. A Customer will not be required to pay the FUSF if it demonstrates to WCS's reasonable satisfaction that it is (a) acquiring WCS Services for resale and not for its own internal use, (b) is contributing directly into the Universal Service Administration Company (USAC) with a valid Filer ID in good standing and (c) has filed the proper FUSF exemption annually with WCS.
The FUSF will: (i) be calculated after the application of promotional and other discounts; (ii) not be eligible to receive promotional or any other discounts; (iii) not be included to determine satisfaction of usage volume requirements; (iv) be calculated based upon the rates and charges applicable to the Customer's total interstate and international service, unless otherwise specified; (v) apply to tax-like and/or tax-related surcharges as defined or described herein; and (vi) not apply to calls using Telecommunications Relay Service (TRS) or to calls originated by certified Customers with hearing or speech impairments.
All telecommunications providers that offer interstate and international voice and data, private line, and other regulated services in the United States (“US”) are required by the FCC to contribute on an equitable and nondiscriminatory basis to the FUSF.
This includes Customers whose circuits with WCS:
Taxes generally are assessed on the FUSF surcharge. It is important to understand that the FUSF surcharge is not a tax. It is a charge that the government imposes on telecommunications carriers on the voice and data revenues they collect. The FCC allows carriers to recover the cost of the surcharge from its end-user customers. Thus, the FUSF surcharge is not considered a tax and must be taxed as normal revenues.
Below is a summary list of the various federal, state and local taxes, fees and surcharges that WCS bills to its customers in addition to FUSF addressed above. Most of these charges are imposed directly on the Customer and are collected and remitted by WCS acting as an agent for the taxing authority.
Telecommunications Relay Service (TRS) enables an individual who is deaf, hard of hearing, deaf-blind, or who has a speech disability to communicate by telephone or other device through the telephone system. TRS is provided in a variety of ways. Currently, interstate TRS calls and all Internet Protocol (IP) based TRS calls, both intrastate and interstate, are supported by the Fund. See Telecommunications Relay Services and Speech-to-Speech Services for Individuals with Hearing and Speech Disabilities, Declaratory Ruling, 22 FCC Rcd 379, 379-81, 390, paras. 3-6, 25 (2007).
This FCC Order also determines, for the 2018-19 Fund Year, the total size of the TRS Fund and the contribution factor, i.e., the percentage of interstate and international end-user revenues that telecommunications carriers and other covered service providers must contribute to the TRS Fund. Federal TRS Fund carrier contribution factor shall be .02801. (2.801%)
In some situations, certain customers may be exempt from certain taxes and governmental surcharges. This is usually in the case of Customers who are reselling the services they purchase or Customers who are exempt charitable, government or religious organizations. WCS does not determine a customer's tax-exempt status. It is the Customer's responsibility to advise WCS of its tax-exempt status WCS will bill tax and surcharges until proper notice of exempt status and properly executed exemption documentation is provided. WCS Surcharges discussed in the following section are not covered by the standard exemption policy described above.
The information contained in this document is for reference only and is subject to change without notice. It is not intended to replace or supersede any Federal, State or Local laws and regulations. Updated information with respect to changes in Federal, State and Local taxes can be obtained from the respective governmental agencies.
In addition to FUSF, federal, state and local taxes, fees and surcharges discussed above, WCS applies surcharges to recover fees imposed for doing business in certain jurisdictions.
• Property Tax Allotment
• Universal Cost Recovery Mechanism
• Administrative Expense Fee
• Regulatory Recovery Charge
• Franchise Cost Recovery Fee
These surcharges are associated with certain taxes and fees imposed on WCS by underlying supplier carriers and third parties and are both consistent with our customer agreements and standard industry practice by carriers and service providers. These charges will apply to all regulated and unregulated charges (including usage and non-usage charges) after the application of applicable discounts and credits.
A tax-related surcharge of 4.85% to recover the property tax that it pays to state and local jurisdictions and its underlying carrier partners. Federal Universal Service Fund (FUSF) and other taxes, fees and surcharges may apply to the surcharge.
UNIVERSAL COST RECOVERY MECHANISM
A surcharge equal to 1.90% related to telecommunications services subject to direct regulation by the Federal Communications Commission as well as to Interconnected VoIP service charges under FCC rules. This charge is imposed to recover amounts incurred by the company for regulatory fees and expenses including but not limited to FCC regulatory fees, and North American Numbering Plan administration, various State Public Utilities Commission (PUC) fees, various state business licenses, and various state annual regulatory fees. Federal Universal Service Fund (FUSF) and other taxes, fees and surcharges may apply to the fee.
A tax related fee equal to 0.95% related to to interstate and international telecommunications services subject to direct regulation by the Federal Communications Commission as well as to Interconnected VoIP service charges treated as interstate under FCC rules. This charge is imposed to recover a portion of internal costs and expenses incurred by WCS to implement, administer, and comply with federal and state regulations and programs. Customer is not required to pay the Administrative Expense Fee if it demonstrates to WCS’s reasonable satisfaction that it meets the requirements to be exempt from the Federal Universal Service Fund surcharge as previously described under FUSF section above. Federal Universal Service Fund (FUSF) and other taxes, fees and surcharges may apply to the fee.
A tax related surcharge to recover local government franchise fees and right-of-way costs incurred for the use of the public right-of- way will apply to customer invoices. The rates and application vary based on jurisdiction. Rates vary from county and state and are available upon request from WCS Customer Service or the WCS Service Guide.
A charge of 2.2% applied to recover amounts paid to the federal government for regulatory costs and telecommunications services for the hearing impaired (excludes Telecommunication Relay Services).
The FCC permits local telephone companies to assess this charge to recover a portion of the costs incurred in the provision and maintenance of telephone service to connect customer's homes and businesses to the telephone network.
NetworkWCS' Intelligent Call Router (ICR) is a proprietary software interface used to provide REAL TIME control of networkWCS call routing. ICR customers can login to our secure portal and manage the routing of DID telephone numbers 's and toll free numbers from over 9,000 CO's in North America and 139 countries worldwide. Best of all, ICR customers can do this independently, on demand without a phone call to WCS, if desired.Create & Execute call volume allocation. Build & deploy disaser recovery plans. Design nested call flows (time of day, day of week, site, % allocation, busy/no answer.reroute, play messages at peak busy times, etc)