Company Profile

• One of the world's largest industrial corporations
• Over 600,000 employees
• Partners with over 30,000 supplier companies worldwide
• Operates in over 50 countries

The Challenges

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.

Overburdened 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 and shift gears to verify the regulations and update the system, before returning to their usual work.

Difficult, time-intensive processing. A slow, laborious, and inconsistent system was depended upon to perform centralized reporting for four different groups. The company needed assurances that after processing the data, their payroll tax payments would be compliant, timely, and without penalties.

The Solution

After considering two other vendors, the company chose the Sage Compliance Services payroll tax solution due to its frequent updates and ability to handle automatic rate changes.

Results

Control of large payroll volume. The Sage Compliance Services payroll tax solution has been delivering accurate and timely reports for this company's ever-increasing volume of payroll tax needs since 1995. Sage Compliance Services consolidated the four payroll groups into a centralized reporting system, then the staff was trained to import and export payroll tax data, which automatically interfaces with the Accounts Payable system. The Sage Compliance Services payroll tax system product assures accurate, timely reports, thereby improving the efficient processing of a large payroll tax burden.

Focused staff—Sage Compliance Services enabled a 25% reduction in headcount resources for the payroll groups of this company. The current staff uses the application to generate laser-printed tax returns, as well as all forms and reports, including 940s, 941s, quarterly state income tax reconciliations, unemployment returns, and year end forms such as W-2s, W-2Cs, 1099s, and 941Cs.

Compliant returns—The Sage Compliance Services system consolidated their groups and offered current compliance information and timely, accurate payments. Cash management through the use of electronic payments on the dates taxes are due has been an added bonus.

What the Client Said

"It's a great system, outstanding! It handles everything we need and more. Sage Compliance Services 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

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