Renowned University Uses TaxFactory™ to Help with Payroll Tax Calculations

Client Profile

A university renowned for its academic excellence faced significant challenges in managing the complexities of payroll tax calculations. With more than 4,000 employees at four different campuses, this university needed a solution for timely payroll tax compliance, while maintaining operational efficiency.

Challenge

This client encountered several issues related to payroll tax calculations that posed risks to their payroll processes and compliance efforts:

1. In addition to federal payroll taxes, the university had to manage payroll taxes across four states: Illinois, Indiana, Wisconsin, and Michigan. Each state has its unique tax requirements and frequent updates, making it difficult to ensure accurate and up-to-date payroll tax calculations.
2. The university relied heavily on manual payroll tax calculations, which increased the likelihood of errors and consumed valuable time and resources. As the workforce grew, these manual processes became increasingly unsustainable.
3. The education industry presents unique challenges for payroll, including healthcare options, pension and retirement withholdings, and the varying employment statuses of tenured, full-time, visiting (visa), and part-time educators. This client struggled to manage these complexities, heightening the risk of non-compliance, which could result in costly penalties.

Solution

To address these problems, the university partnered with Business Software, Inc. (BSI) to implement TaxFactory, a robust payroll tax solution.

1. TaxFactory automated the intricate payroll tax calculation process for the university’s multi-state operations, helping with timely tax withholdings. The advanced capabilities in TaxFactory lowered the risk of errors and saved significant time for the payroll department to focus on other tasks.
2. TaxFactory enabled the university’s payroll department to stay up to date with the latest Federal, State, and Local tax regulations. The solution automatically applies tax rates and rules, minimizing compliance risks, while helping meet regulatory requirements in the four states.
3. The user-friendly interface of TaxFactory integrated seamlessly with the university’s existing systems, allowing payroll staff to efficiently manage complex payroll requirements, including pension withholdings and diverse employment statuses.

The implementation of TaxFactory brought transformative changes to the university’s payroll operation. The client was able to successfully address its payroll tax calculation challenges, improve compliance across multiple states, and streamline its payroll operations. These changes enabled the university to focus on its core mission of delivering an exceptional education to its students.