Company Profile

• Developer of facilities management software to control comfort, security and eco-efficiency
• Ranked among the top ten foreign multinational employers in the United States
• 7,500 U.S. employees; 32,000 worldwide
• 240 U.S. sales and service locations in 40 states
• Annual sales of $8.3 billion

The Challenges

Multiple payroll systems. The company's two main locations each utilized a different payroll outsourcing vendor. One of the vendors was then responsible for combining the data files from two separate payroll systems in order to process taxes for one mutual FEIN. A difficult task, considering the differences in personnel, payroll systems, and data types, not to mention the large number of employees.

Merging data types. The company began to experience the pain of reprocessing due to errors. Numerous penalties resulted from the outsourcing vendor's errors in combining the diverse data types. An example of their worst case occurred in July 1999, when a sixth reprocessing of their first quarter tax filing had to be postponed in order to complete their second quarter processing.

Lack of detailed data. The outsourcing provider did not provide actual copies of their returns, only summaries, taking control of information out of the company's hands.

The Solution

After considering several options, the company outsourced their payroll tax needs to Sage Compliance Outsourcing Services. Sage Compliance Services was chosen over other vendors due to extensive tax expertise and an "indifference" to data formats received from different payroll systems.

Results

Smooth data conversion. The company took advantage of Sage professional services to assist with the conversion and implementation. This helped ensure that processes were in place at both locations for good tax filing data flow and week-by-week analysis of Sage Compliance Services reports.

Unified data from multiple payroll systems. Now, the multiple data systems are automatically combined into a single database and uniform format, resulting in quicker and more accurate payroll data for processing.

Merging data types. No more errors and penalties due to reprocessing. The Sage Compliance Services system now imports and automatically merges data into a single format, seamlessly. The data is processed against compliance rules for federal, state, and local jurisdictions, which determines when consolidated payroll tax payments must be paid and to which agency.

Detailed reports & returns. Quarterly and annual returns are automatically populated from the reconciliations. The company's returns are generated to a laser printer in a signature ready format and can then be handled according to the company's policies, resulting in a stronger process with more control.

What the Client Said

"Sage Compliance Services should wear camouflage uniforms because they came in and rescued us like a SWAT team. We're recognizing that you get what you pay for in payroll tax automation - the cheapest solution is not always the most cost-effective."

-Assistant Treasurer, Finance

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