Overcoming Tax Challenges with Automation and Improved Workflows
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Key Takeaways
⇨ Organizations, especially those with outdated practices, must adapt to evolving tax regulations to avoid compliance issues and should seek automated solutions for improved accuracy.
⇨ Implementing tools like TaxFactory can significantly streamline payroll tax calculations, increasing efficiency and allowing teams to focus on strategic initiatives instead of manual processes.
⇨ Real-time regulatory updates are essential for companies operating in multiple tax jurisdictions, eliminating the risk of missing important changes and enhancing overall compliance.
The process of paying taxes has grown more and more complicated over the years. More technological requirements, increased complexity, and changes across different jurisdictions can make compliance challenging for many organizations. To illustrate how to overcome these challenges Business Software, Inc. (BSI) shared how it was able to help one client to deal with new issues and remain compliant through tax automation.
Overcoming Outdated Practices
A major public library system, founded in the late 1800s, had issues with its tax requirements. Managing payroll taxes for over 3,000 employees became increasingly complex due to the library’s operations in multiple tax jurisdictions.
The library system, one of the largest in the United States, serves 2.3 million annual visitors across 66 branches and manages a vast collection of 7.5 million educational items and 5 million books in 50 languages. Its diverse offerings include educational programs, adult learning centers, and teen centers — all supported by over 3,000 employees working across multiple tax jurisdictions.
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The payroll team relied on manual processes that were time-consuming and error-prone, increasing the risk of non-compliance and potential financial penalties. Tracking constant changes in local, state, and federal tax regulations manually was an overwhelming task. The library system recognized the need for an automated payroll tax solution to improve accuracy and reduce administrative burdens.
Finding Solutions
The library partnered with BSI to implement TaxFactory, a cloud-based, scalable application designed to automate payroll tax calculations. TaxFactory’s automation capabilities streamlined the entire tax calculation process, eliminating the need for manual data entry and reducing the risk of human error through tax automation.
Key improvements from implementing TaxFactory include:
- Automated Tax Calculations – TaxFactory’s powerful engine automatically calculates payroll taxes based on the latest regulatory changes, ensuring accuracy and compliance across all tax jurisdictions.
- Real-Time Regulatory Updates – The tool updates tax tables and rules automatically, eliminating the need for manual monitoring of regulatory changes.
- Increased Efficiency and Productivity – The payroll team reported a significant reduction in time spent on tax calculations and corrections, allowing them to focus on more strategic initiatives.
- Scalability and Integration – As a cloud-based SaaS platform, TaxFactory integrated seamlessly with the library’s existing payroll system without requiring significant infrastructure upgrades or operational disruption.
Results
Since adopting TaxFactory, the library system has experienced improved payroll processing efficiency, reduced administrative workload, and greater compliance with evolving tax regulations. By minimizing errors and ensuring timely updates, TaxFactory has helped the library maintain operational efficiency, allowing the payroll team to focus on supporting the library’s core mission of providing valuable services to the community.
What This Means for SAPinsiders
Avoid being stuck in old workflows. Companies cannot rely on the same tax workflows they have relied on for years. Organizations, particularly older ones, often fail to adapt to changing requirements and risk compliance issues. Even if they have not faced issues before, companies should find new ways to accomplish key tax workflows.
Maximize efficiency to free up key team members. Organizations often spend more time than necessary on tax workflows, relying on outdated manual processes. Companies can free up these team members to drive innovation by turning to Business Software, Inc. (BSI) and its TaxFactory software.
Complete updates in real time. With jurisdictions updating their tax rates at different intervals, companies cannot afford to track these manually, as they could miss something. Organizations operating in multiple jurisdictions must find options with real-time updates, so the need to manually track tax regulatory changes is eliminated.
