Grocery Delivery Company Automates Its Local Payroll Tax Determinations

Company Profile

This rapidly growing BSI client is a grocery delivery company. Founded in 2012 by a former Amazon employee, this organization has partnerships with more than 350 retailers across 5,500 U.S. cities, in all 50 states.

Challenge

This client contacted us for more information on our TaxProfileFactory™ solution. The client was experiencing challenges with their payroll tax onboarding and W-4 process.

1. They were hiring 300 new associates every week, and because they were handling payroll tax onboarding manually this equated to a huge amount of man hours. The process was fraught with errors.
2. They talked to another vendor and realized this vendor could assign a tax profile based on a live address, but not a work address. This did not meet the client’s requirements, especially in states like PA and OH, where the work address determines the employee local taxes needed.
3. They needed a way for employees to complete their W-4 forms to have a tax profile to deliver to payroll – essential for a company experiencing rapid growth and employee turnover.
4. They wanted the employees and the employer (their firm) to be notified when employee W-4s needed to be updated.

Solution

Based on the client’s concerns, BSI demonstrated how TaxProfileFactory can…

1. Automate the determination of all payroll taxes and W-4 processing. The client’s payroll staff would no longer have to spend hours manually onboarding employees, and errors would be minimized.
2. Decrease issues with incomplete or inaccurate local tax profiles due to TaxProfileFactory’s ability to discover payroll tax profiles based on live and work addresses.
3. Deliver a tax profile to the client’s payroll system regardless of whether the employee completed a W-4 form.
4. Report when a W-4 is not completed.