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. The newly created payroll office was required to create more than 550 manual tax returns each quarter for 80,000 employees. This burden created a high risk of penalties due to errors in manual processing.

Rapid increase in employee count. During the consolidation of businesses, the payroll office increased their production from 2 to 9 FEINs, and state processing increased from 7 states to 48. This created a rapid increase in demand for accurate local, state, and federal tax compliance information.

The Solution

After considering other payroll tax avenues, the company selected Sage Compliance Services payroll tax software to automate the processing of federal, state, and local tax payments. They took advantage of the accurately scheduled due dates, export of payment files to their accounts payable system, and the signature-ready quarterly and annual returns.

Results

Streamlined processing. The work of five payroll offices is now cost-effectively generated by one office with a staff of three full-time employees.

Timed saved & accuracy achieved. The Sage Compliance Services solution provided the company with a cash forecasting tool that gives them monthly projections and helps to reconcile their quarterly data more easily. Electronic payments are also made on a timely basis, for best use of their cash.

Highlights

• The work of 5 payroll offices is now cost-effectively handled 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.

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