case study •·urureof leading international
TRANSCRIPT
Charting the
•·urureof
Pavroll 'fax
Compliance
CASE STUDY
Leading International Telecommunications Company
[Removed] Enables the Transition to Automated Processes During Period of
Rapid Consolidation and Growth
Company Profile
• One of the world's largest and most successful
telecommunication service companies
• Services include local/long distance telephone and data
service, cellular, paging, cable, Internet and more
■ Market value of $80 billion; more than $17 billion in
annual revenues
• Holdings in 16 countries outside the U.S. and the largest
non-European investor in European telecommunications
The Challenge
Consolidation of Payroll Offices
Five payroll offices were closed due to consolidation,
decreasing the number of payroll professionals, but
simultaneously increasing the workload. This created an
immediate need for a cost-efficient, timely, and accurate
solution for automating the payroll tax process.
More than 550 Tax Returns
Rapid Increase in Employee Count
During the consolidation of businesses, the payr
increased their production from 2 to 9 FEINs, an
processing increased from 7 states to 48. This created a
rapid increase in demand for accurate local, state, and
federal tax compliance information.
HIGHLIGHTS
• The work of 5 payroll
offices is now cost-
effectively generated
by a single office with
3 FTEs
• Achieved greater ,
efficiency in processing
of an ever-increasing
payroll tax burden
• Up-to-the-minute
compliance information
• Improved cash
management and
workflow
[Co Logo Replaced]
The Solution
After considering several options, the company selected the
[Removed] because of its ease of use, minimal
requirements for internal IT support, and ability to
· accommodate their rapid growth and change. [Removed]
(Electronic Payment & Information Courier) was also
chosen to electronically submit the company's tax payments
via electronic funds transfer, automating the payment and
tracking of their payroll taxes.
Results
Greater Flexibility & Control
Using the [Removed], the company was able to achieve its goals
of improved tax processing, fewer errors, more flexibility for
cash management, and greater control over data.
Additional Service & Training
Over and above what the software supplied for them,
[Removed] provided knowledgeable account managers who
trained their personnel, mapped out procedures for managing
taxes, and helped in balancing their payroll system. The
company also took advantage of the [Removed] Discovery User
& Training Conference, in order to further explore their options
with [Removed] products.
About [Removed]
[Removed]is the leader in employer compliance software and
services. We automate the tasks associated with payroll tax
payments and filings, wage garnishment processing, and
W-2/1099 processing. [Removed] solutions are web-enabled
and scalable to enterprises of all sizes. Our clients include more
than 400 companies ranked in the Fortune 1000, as well as
several major agencies of the federal government.
[Copyright removed]
STRENGTHS
• Improvement of
.
.
.
internal processes,
increasing control
over payroll taxes
lnsourcing provides
increased control via
automation
Ongoing training
opportunities,
including annual User (
Conference
[Removed] automates
electronic tax
payments and tracking
[Contact information removed]
( :barring the
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Pavroll 'E1x
Compliance
- -- ---CASE STUDY
-- - -
U.S. Treasury Department
[Removed] Provides the U.S. Government with the World's First Web-Native Payroll Tax Solution
Agency Profile
■ The Financial Management Service (FMS), one of 12
bureaus of the Treasury Department, is the U.S.
Government's cash manager
■ Disburses in excess of $1 trillion annually in 860 million
non-defense payments, which includes government payroll
■ Manages the world's largest collections system, gathering
$1.5 trillion annually in Federal revenues
■ Must handle payroll tax collection and reporting for all
U.S. Government employees
The Challenge
Inadequate Legacy System
In the early 1990's, FMS implemented a system to automate
the payment of taxes by Federal agencies and the filing of
Form 941. Known as [Removed], this system was running on
legacy hardware, was inadequate to handle increasing
volumes, and was not Y2K-compliant.
Diverse Agencies to Be Supported
The Treasury Department needed to create a new, state-of-the
art tax automation solution that could handle the diverse tax
needs of hundreds of federal agencies.
Complex Requirements
In order to transition agencies and users as quickly as possible,
the system must utilize state-of-the-art technology, have
builtin tax compliance capability, and be easy to use. It must
also be extremely secure, since it would handle billions of
dollars of tax payments annually.
The Solution
[Removed], under contract to CashTax (First Data Corp.) and
Bank of America, developed [Removed] the world's first
web-native application to automate the payment
"[Removed] provides the
Treasury Department with
improved tax
classification reporting,
and it provides
government agencies a
fast, convenient, and safe
way to make their tax
payments."
- Paul Gist
Director of FMS' Financial
Services Division
Results
Reduced Resource Requirement
Two employees, as opposed to the previous four, in the 83-
person payroll department now can handle all of the airline's
payroll tax depositing and reporting. In fact, a recent research
study by Gunn Partners ranked Northwest third among 90
large employers in the lowest payroll department costs
(including payroll tax costs).
Consolidation of Diverse Payrolls
The [Removed] consolidates all the airline's taxes for each
individual payroll type processed.
Automatic Imports & Exports
The software automatically imports and exports payroll tax
data via an interface with the airline's accounts payable
system.
Timed Saved
The [Removed] solution provided Northwest with a cash
forecasting tool that gives them monthly projections, and helps
to reconcile quarterly data more easily. Instead of two to three
days, the process now only takes a few hours.
Better Cash Management
Electronic payments are made timely on the due date,
providing for the best use of cash resources.
About [Removed]
[Removed] is the leading provider of software solutions,
outsourcing and professional services to employers for
government reporting and compliance. We automate the tasks
associated with payroll tax payments and filings, wage
garnishment processing, and W-2/1099 processing. [Removed]
solutions are webenabled and scalable to enterprises of all sizes.
Our clients include nearly 400 members of the Fortune 1000, as
well as major government agencies.
[Copyright removed]
HIGHLIGHTS
•
•
.
.
.
Reduced headcount
resources by 50%
Achieved significant
savings - ranked 3rd
of 90 large employers
in cost efficiency
Greater efficiency in
processing of a large
payroll tax burden
Up-to-the-minute
compliance
information
Improved cash
management and
workflow
[Contact information removed]
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--- ------
CASE STUDY
-
Full-line Vehicle Manufacturer
[Removed] Eases Compliance Burden for Leading Company
Company Profile
• One of the world's largest industrial corporations
• Employs over 600,000 people
• Partners with over 30,000 supplier companies worldwide
• Operates in over 50 countries
The Challenge
Large Payroll Volume
This vehicle manufacturer manages 33 federal employer
identification numbers, four separate payroll systems, and over
$3 billion in annual federal withholding. They were burdened
with a large payroll volume, requiring the cumbersome
collection of payroll tax data, the creation of compliant
reporting, and the completion of timely and accurate tax
returns.
Over-burdened Staff
The company's staff was hired for their efficiencies with
analytical work, including verifying data imports and making
payroll changes at month-end or quarter-end. But new
compliance burdens were placed on them as tax deposit
regulations changed. They frequently had to stop all processes
before returning to their usual work.
Difficult, Time-intensive Processing
A slow, laborious, and inconsistent system
penalties.
The Solution
After considering two other vendors, the company
chose the [Removed], due to its frequent updates and
ability to handle automatic rate changes.
"It's a great system,
outstanding! It handles
everything - and more.
[Removed] is very fast
with compliance updates.
Training is easy because
the application is so user
friendly, with easy-to
follow screens and
interfaces, and familiar
payroll tax terms."
- Director of
Shared Services