Demystify Payroll Taxes with this BSI Solution

May 1, 2019 4:01:25 PM / by Julia Thiel

Are you struggling or frustrated with trying to understand payroll taxes? What about state tax reciprocity or multi-state taxing needs? There is an answer - BSI’s Tax Factory.

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Tax Factory is a software solution offered by Business Software International (BSI). BSI is the Infor software partner that provides payroll tax updates and tax management to companies using Infor S3/Lawson payroll.

Tax Factory helps manage tax related needs such as:

  • Tax management of multiple tax reporting companies and multi-state taxes
  • Setup of Tax Authorities (tax authorities are the link between Infor and Tax Factory)
  • Ensuring employee address information is accurate and complete for tax calculation purposes by  identifying incomplete / missing information that may impact payroll tax calculations for each employee
  • What-if tax scenarios
  • Setup of override options for all of your unemployment rates
  • Deferred compensation plan rules, with simple and matrix configuration options that align with each organization's level of complexity
  • Age specific allowances
  • Years of service needs
  • Multi-plan participation
  • State Reciprocity (scenarios that include employees living in one state and working in another, including state with special agreements, such as: OH and PA) 

Tax Factory has good online user help and robust functionality. It provides enough flexibility to allow companies to accommodate their unique payroll tax needs through application setup and configuration.

At the highest level, these three steps allow Tax Factory and Infor to work together:

  • Tax Authorities are setup in Tax Factory
  • Tax Authorities are setup in Infor
  • Tax Deductions are setup in Infor

When a Tax Deduction is assigned to an employee, the tax rule associated with the Tax Deduction/Tax Authority combination is applied to the employee at the time of tax calculation. It’s that simple.

 

How Can You Get Started with Optimizing BSI's Tax Factory?

Key Tax Factory screens your payroll team will need to be familiar with may include (but are not limited to):

  • Mapping Tools Starting point to map Tax Codes, Tax Types and Plan Earnings Codes
  • Manage Employee Groups – Starting point to set up the special tax group codes
  • Manage Payment Overrides – Starting point for the various overrides the Employee Groups require
  • Manage Unemployment Overrides – Starting point for Unemployment overrides
  • Manage Optional Rate Overrides – Starting point for special retirement contributions like state funded retirement, railroad retirement, teacher retirement, etc. (associated with HR11 tax tab P.S. Retirement Plan values)

Key Infor screens that your payroll team will need to be familiar with may include (but are not limited to):

  • HR11 Tax Tab
  • PR13.1 – Employee United States Taxes
  • PR13.7 – US Tax Locations
  • PR13.8 – US Tax Deduction Errors
  • PR05 – Deduction
  • PR06 – US Tax Authority
  • PR14 – Employee Deduction
  • PR113 - US Tax Deduction Update
PR113 will setup taxes for employees and can always be run in Report mode before creating the employee deductions for taxes. Due to the Infor/Tax Factory integration, Tax Factory provides a set of messages for each run of PR113, PR140 and PR80. The messages should be reviewed for errors, warnings and notifications to ensure taxes are being withheld as expected for all employees.

If you own Tax Factory today, you have a head start! If you have not fully leveraged Tax Factory capabilities, are dealing with tax issues or just want to better manage your Payroll Tax processes, maybe it’s time to review the configuration of Tax Factory.

 

ENGAGE ROI, KLAS Category Leader, FOR HELP WITH BSI TAX FACTORY!

678.270.2867  |  https://roihs.com

ROI is a CloudSuite and Birst specialized Infor Alliance Partner with hundreds of Infor engagements under our belt. Our team is passionate, collaborative, and we work with customers to identify optimal processes and setup systems to enable those scenarios, for the benefit of the entire organization. Our certified and experienced Consultants posses over 10 years of functional and technical expertise.

Call us today.

Topics: HR, HCM, Payroll



Julia Thiel

Written by Julia Thiel

Julia is an Information Systems professional with extensive functional and technical experience in Infor Lawson (and other) ERP packaged software and applications development. Knowledge includes Organizational Change Management, Project/Program Management, Business Process Improvement/Optimization, enterprise-wide ERP implementations and Business Intelligence solutions with experience across multiple industries.