Payroll taxes can cause a lot of stress for a payroll department. Finding ways to automatically calculate correct taxes based on current tax rules and filing those taxes in a timely manner is a goal which would lessen the burden on payroll teams everywhere.
The first challenge is what taxes should be withheld from an employee? There are different rules depending on where the employee lives and works. If your company is in one of the 16 states with local taxes, now things become even more complicated. When I first heard about Scissortail HCM and how it uses geospatial technology to determine what taxes should be applied to employees, I was intrigued. This seemed too good to be true, but it is not. Scissortail looks at the employee’s home address as well as the company’s address to determine the appropriate taxes. It can even use a location address if you have multiple locations. The system calculates the employee's check and finds the local taxes which may need to be applied as well as taking into account the reciprocity agreements between states in regards to their tax laws.
The second challenge of payroll taxes is keeping your tax tables up to date for accurate withholdings. We all know there are tax table updates at the end of each year, but frequently states and locals can decide to adjust rate tables in the middle of the year. With Scissortail HCM tax tables are updated automatically and applied to ensure the most accurate withholdings. No more downloading tax table definitions, updating the system and then applying them.
Once you get the taxes withheld, now you face the third challenge of knowing the filing requirements for when to submit your taxes for each Local, State, and Federal tax. With Scissortail HCM your taxes will be paid, forms printed, and eFiled for all Federal, State, and Local taxes.
So as you know and probably have experienced, dealing with tax commissions everywhere can be both time-consuming and nerve-racking. But now with having all of your tax worries handled by Scissortail HCM, it will make your payroll department a much happier place.