499-Q Quarterly Report
Update the BDR data
Make sure that the BDR data is up to date in PPNSystem_BwBdr.
Get the minute usage for the quarter
Once all the data for the relevant quarter has been imported into PPNSystem_BwBdr, run the appropriate stored procedure for the year/quarter in question. Create the SP if it does not exist for the year.
exec GetCallsByTypeByQuarter_2022
This will give you:
The results show total intrastate, interstate, international and toll-free OUTBOUND calling only for the relevant quarter. All inbound calls are filtered out.
Call Qty = the number of calls received
Minutes = the total seconds shown in the bandwidth BDR / 60.
Cost = the dollar amount we were billed by bandwidth.
Price = revenue we derived from sale of those minutes.
How do we calculate price?
| Starter | Talker | Business | |
|---|---|---|---|
| Plan Revenue | $9.95 | $19.95 | $29.95 |
| Included Minutes | 500 | 1200 | 1800 |
| Revenue per minute | $9.95/500 = $0.0199 | $19.95 / 1200 = $0.016625 | $29.95 / 1800 = $0.016638889 |
So we sell a minute for $0.0199
BUT we provide a bunch of other services for the $9.95, such as:
- Text
- Fax
- Call Recording
- Voicemail
- Call Routing
- Business hours
- App functionality
- Users
- etc..
So we have decided, (very conservatively) that 35% of revenue is from minute usage.
Therefore minutes are sold for:
35%*$0.0199 = $0.006965
It is this revenue we will pay tax on.
On the interstate calls above, for example, we calculate 638391 minutes * $0.006965 = $4329.69
This $0.006965 factor is hard coded into the stored procedure. Update yearly if required.
Total revenue for all activities
We also need the total company revenue for the quarter. We can get that from ppn_system.
Stored procedure: ppn_Dashboard_RevenueByQuarter
Results in:
We will use the quarterly figure in the compliance group website below.
Complete the 499Q form
So we have two set of data:
Total Revenue:
Revenue derived from minutes sold:
_We will add the outbound toll-free figure to the Interstate
We can now plug these figures into the Compliance Group website.
(NOTE: the values of revenue & minute costs will not match in the screenshots below as they were taken in different quarters)
Awaiting approval
The compliance group will now review and issue a ‘De Minimis’ letter.
Once this is sent, check the dashboard to see that 499Q for the quarter is complete.
Reset Database
Resize the DTU and space on the database to reduce month-to-month charges.
De Minimis letter sent
