Tax Compliance in Payroll

Create a list of the top five services you provide for your clients. Of these, which ones cause you the most in loss of client confidence, operational expenditures, and sleepless nights? If you include tax compliance, the accurate calculation, funding, payment and reports of taxes and wages to the over 7,000 tax agencies in the United States, you are not alone. So what make for solid compliance?

  1. Your application should be built by an experienced team that has done this before. You do not want to be using your clients’ patience and your money helping someone learn compliance.
  2. Your team should be fully independent. In this way you know your client lists are for your eyes only and you avoid that nagging sense that one of the days, the rules may change for you.
  3. The tax calculation need to be accurate and flexible. You need to trust that last minute tax changes can be delivered to your clients timely and accurately.
  4. The funding and payment of taxes should be integrated into your payroll system. You need one database, one application, one instance of the data driving the underlying reporting, collections and payments. Passing data back and forth between separate systems is dangerous. Quarterly audits only exacerbate your quarter end workload for your already hard working staff and missed synchronizations that go undetected destroys your clients confidence in you company. How do you explain a rate or wage that was correct in payroll but incorrect at quarterly reporting time? These breaks in the flow of data highlight the weakness in your system.
  5. Reversals, adjusted payrolls, voided items should all immediately impact the reporting and payments for the quarter. Not require jumping through hoops to upload, verify, audits and reprocess.

We took the time to invest in compliance and integrated tax reports and payments because we understand that an efficient and accurate operation can have critical information recorded only once. Everything that needs that information retrieves it from the same source. This is critical for accuracy and confidence in the results

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