As most payroll professionals know, the Tax Cuts and Jobs Act (TCJA) was enacted at the end of last year and has had a significant impact upon the W-4 form. As of March, the 2018 W-4 version is required for new hires and when employee situation changes occur. BSI’s TaxProfileFactory™ is a cloud solution that automatically maintains employee tax profiles.
Have you ever received a withholding form without the Marital Status box checked off? How about a form missing the zip code value or an employee who handwrote the number 1 and it looks like a 7? Professionals in our industry are often dealing with these issues, along with many others. We all also know how challenging it can be to not receive a signature at the bottom of a form.
TaxProfileFactory is the most feature-rich tax profile solution available in the industry. It originated in 2011 as a W-4 product that supported Federal, State, Local, and Territory paper and electronic forms. Since that time, the solution has been substantially enhanced with numerous other powerful services.
TaxProfileFactory automatically maintains employee tax profiles for Federal, State, Local and Territory taxes and removes the burden of having to manually detect and make profile and assignment changes. This helps decrease the number of W-2c forms issued due to updated corrections to employee tax profiles, as well as State and Local taxing jurisdictions. The solution creates tax profiles automatically, thereby eliminating adjustments to future paychecks, tax payments, tax filings, and W-2s, saving substantial time, effort and money, while greatly improving and streamlining overall tax processing.
For example, as you are aware, Reciprocal Agreements can often be a cause of stress for payroll tax professionals. Reciprocal Agreements allow employers to exclude nonresident employees from work state income tax. TaxProfileFactory provides all applicable Non-Resident Certificates.
Managing the requirements for Non-Resident Aliens is fairly straight-forward, with only a few noted exceptions, such as for Canadian, Mexican and South Korean citizens, as well as very specific citizens of India and any U.S. Nationals employed by your organization. As we progress through the remainder of 2018, we are anticipating changes for the 2019 payroll withholding landscape. From anticipating a new Federal W-4 to State legislative changes, and possibly even some local authority updates, times are changing. The TCJA encompasses much more than just employee withholding by ensuring any associated deduction or earning codes are planned and implemented as needed, along with understanding any new rates and regulations issued by authorities.
Some points to remember about BSI’s TaxProfileFactory solution:
Managing employee wage garnishment tasks often elicits the same reaction as a dental checkup: it is a necessary, repeating event that, if not managed properly, can have steep financial consequences. Complying with garnishment orders is not easy. When setting up the payroll system to withhold the required monies, payroll professionals must account for factors such as exempt wages, disposable income, and processing priority – and that is just the beginning. To ensure compliance, organizations must fully understand the remittance process, which can require a significant amount of communication with various agencies to comply with all the imposed regulations.
Tracking where, how, and to whom payments and paperwork need to be delivered to satisfy garnishment originators can be daunting for many businesses, and this task is not optional. Mishandling garnishments – such as not filing on time, filing incorrect information, or failing to adhere to specific payment requirements – can severely impact fiscal accounting by causing your company to incur significant penalties.
Becoming familiar with wage garnishment laws and fostering relationships with agencies, such as the federal Office of Child Support Enforcement, can provide more reliable in-house procedures to reduce confusion, errors, and non-compliance assessments. However, staying up to date on the varying types of garnishment agencies and regulations, as well as differing laws related to net wage protection, can be time-consuming and overwhelming – just ask the American Payroll Association as it works with the Uniform Law Commission to structure the proposed Uniform Wage Garnishment Act to more closely align current state laws that have significantly different, and sometimes outdated, requirements.
Taking on wage garnishment remittance is no small effort and sometimes organizations require additional support. Infor partners such as BSI can provide the guidance and industry experience needed to remain compliant and avoid costly fines.
BSI helps Infor customers streamline their garnishment remittance processes with its cloud-based ComplianceFactory™ solution suite, which manages both payroll tax filing and wage garnishment remittances. ComplianceFactory provides organizations with a simplified, organized single view of withheld garnishment monies in a self-service environment, built on authority-regulated rules, payment requirements, and reporting, similar to the methodologies used for payroll tax filing.
Underlying the ComplianceFactory solution suite is BSI’s strong relationships with many garnishment collection agencies and authorities, and the BSI research team’s extensive knowledge of the unique rules, regulations, and requirements needed to satisfy employee obligations. This expertise, combined with the comprehensive functionality of ComplianceFactory, helps to relieve stress and support organizations throughout the wage garnishment cycle.
If you find that you are struggling with wage garnishment remittances, one thing is certain – you are not alone. Many payroll professionals have difficulty managing the process and staying informed on changing garnishment requirements. Infor partners such as BSI can help alleviate the strain on organizations by providing the support needed to reduce handling risks, improve employee relationships, and maintain control of your wage garnishment processes.