Keeping Up to Date State Local Changes to Tax Regulations
Meet the Authors
SAP organizations do everything they can to minimize tax burden and ensure that they are in compliance with all applicable regulations for their federal, state, and local jurisdictions. However, this is made difficult by the fact that tax regulations are constantly in flux.
These changes can make it difficult for companies to understand their tax burdens and plan for the future as well as jeopardizing their compliance initiatives. Not only do these changes in payroll tax rules change often, but they also grow more complex. SAPinsider research has shown that growing complexity in compliance management, governance, and regulations is the top concern affecting the way that organizations handle their tax management strategies.
Recent Tax Regulatory Updates
To help organizations keep track of these updates, the tax compliance experts at BSI recently held a webinar to go over some of the most recent local and state-level updates. These updates affect millions of Americans across eight different states:
- Arkansas
- California
- Iowa
- Kentucky
- North Dakota
- Pennsylvania
- Rhode Island
- Virginia
These changes cover taxes on wages, leave policies, income taxes, occupational tax rates, and more. These updates are highly dependent on each state and locality’s political situation. Many SAP organizations have said that they have a hard time keeping up with such frequent and complex changes.
Overcoming Regulatory Hurdles
With tax regulation changes growing more frequent and more complex, SAP organizations are beginning to realize that they cannot continue to track these updates manually. This runs the risk of missing an important change that can lead to significant penalties and financial complications into the future.
Many SAP organizations are turning to partners like BSI to help them automatically ensure that their payroll tax calculations are accurate. BSI offers its TaxFactory tool, which comes with the unique Tax Locator feature. This allows users to automatically locate employees and ensure that their payroll system is up to date with all applicable regulations. This removes significant burdens from the payroll process and ensures accurate calculations.
As many organizations struggle to accommodate the rise of remote work, streamlining and automating payroll processes is more important than ever. Companies must find solutions that allow them to accurately calculate their payroll and tax burdens, file taxes, and remain compliant with all applicable regulations.
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