Payroll Year End Processing

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E-Business on Solid Ground
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Payroll Taxation Enhancements for Lawson
Version 8.0

• BSI TaxFactory / TaxFactory Canada

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Agenda

• BSI TaxFactory / TaxFactory Canada
• TaxLocator
• New Forms / Programs
• 7.2 to 8.0 Upgrade Considerations
• Overview of BSI TaxFactory Menu Functionality

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BSI TaxFactory / TaxFactory Canada

• BSI TaxFactory is a payroll tax regulation
  and compliance product for automated payroll
  systems. It is the tax software product
  delivered with the Lawson HR Suite 8 Series.

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BSI TaxFactory / TaxFactory Canada

• To process PR using Lawson Version 8, must
  install BSI TaxFactory 6.0 (for use in U.S.)
  and/or BSI TaxFactory Canada (for use in Canada).
• Must be running Environment 8.0.x.
• Products are installed on the client server (same
  server as the Lawson Apps) and on the user
  desktop.

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BSI TaxFactory / TaxFactory Canada

• BSI TaxFactory 6.0 includes new tax engine
  called TaxLocator.
• When EE work and/or home address changes, Lawson
  sends this info to TaxLocator.
• TaxLocator identifies and returns applicable tax
  authorities and triggers auto creation of tax
  deductions for the EE.
• NOTE TaxLocator engine not present in BSI
  TaxFactory Canada product.

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BSI TaxLocator

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BSI TaxLocator

• With TaxLocator, U.S. tax withholding deductions
  will no longer need to be associated with PR03
  (Required Deductions). PR03 will continue to be
  used for group-wide deductions. TaxLocator auto
  attaches appropriate taxes to employees (U.S.
  taxation only).
• Tax deductions assigned based on employees home
  state (HR11) and location code (HR04.9) assigned
  on HR11.

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BSI TaxLocator

• Default functionality returns taxes based on
  city, county and state information.
• TaxLocator includes street-level address
  verification, however, client can choose not to
  download state street-level files.
• Correct spelling of streets, cities, states and
  counties is critical!

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BSI TaxLocator

• TaxLocator uses two pieces of data when assigning
  taxes
• Employees Home Address from HR11 taken
  directly from the HR11 Address Tab

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BSI TaxLocator
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BSI TaxLocator

• 2) Location Code (defined on HR04.9, attached to
  HR11)

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BSI TaxLocator

• Work state on PR13 is derived from the location
  code.
• If EE is tied to a process level whose country is
  U.S., the location code is a required field on
  HR11.

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BSI TaxLocator

• Postal Address Converter Uses information
  passed to BSI from Lawson Address lines 1 and 2
  to locate and verify street addresses within a
  state and postal code.
• TaxLocator files for each applicable state must
  be loaded from BSIs Web site.
• If the applicable state file is not loaded, BSI
  will use current TaxLocator functionality to
  resolve taxes using city, county and state.
• By following address guidelines (eliminating P.O.
  boxes and rural route numbers), tax deduction
  accuracy in states with localities will increase
  to over 90.

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BSI TaxLocator

• All applicable tax authorities must be set up on
  PR05 before TaxLocator can attach them to
  employees.
• Tax authorities on PR06 should not be duplicated.

• The Tax Group field on the employee time record
  has been replaced by Location Code.
• Location Code will replace Tax Group field on all
  forms where Tax Group formerly existed.

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BSI TaxLocator
Triggers to call TaxLocator

• Change to employee address fields (Addr1, Addr2,
  City, County, State, Zip)
• Change of Location Code
• Removal of Termination Date
• Pay Status (PB or PN)
• Railroad Code
• Work Country

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BSI TaxLocator
When an employee is added, home address and work
location information is passed from Lawson to
TaxLocator. TaxLocator returns necessary tax
authorities and triggers Lawson to create
appropriate deductions.
New EE Info
New EE record in Lawson
TaxLocator
Tax Deductions
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BSI TaxLocator
When trigger fields on an employee record are
changed, the changed information is passed to
TaxLocator. Based on the information passed,
TaxLocator will add new tax deductions and/or end
existing ones (by adding an end date to the
deduction).
EE Change Info
Existing record in Lawson
TaxLocator
Tax Deductions
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BSI TaxLocator

• TaxLocator returns tax authorities and enables
  the creation of tax deductions based on the HR11
  Effective Date or Personnel Action Effective Date
• There is an effective date field on PR113 that
  will also allow you to manipulate the effective
  date of tax withholding deductions

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New Tax-Related Forms/Programs
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New Form U.S. Tax Locations (PR13.7)
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New Form U.S. Tax Locations (PR13.7)

• PR13.7 is used to
• View tax deductions which were attached to
  employee by TaxLocator
• Disable any tax deductions which were attached to
  the employee by TaxLocator
• Enable tax deductions that were manually disabled
• Attach other tax deductions to the employee and
  location that TaxLocator did not identify

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New Form U.S. Tax Deduction Errors (PR13.8)
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New Form U.S. Tax Deduction Errors (PR13.8)

• PR13.8 is used to
• View TaxLocator errors on individual employees
• Inform the user to look at BSI error messages
• To perform updates on individual employees

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New Form U.S. Tax Deduction Errors (PR13.8)

• The three tabs on PR13.8 are used for the
  following
• Messages Tab displays tax messages/errors
• Location Changes Tab displays tax deduction
  changes by location
• Deduction Changes Tab displays the deduction
  changes that occurred due to the TaxLocator update

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New Form U.S. Tax Deduction Update (PR113)
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New Form U.S. Tax Deduction Update (PR113)

• PR113 can be used
• To perform maintenance on employee tax deductions
• To load correct taxes for employees
  (post-implementation)
• To set up newly implemented taxes for employees

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7.2 to 8.0 Upgrade Considerations
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7.2 to 8.0 Upgrade Considerations

• Location Code
• Location Code is required in 8.0. If location
  code is utilized in 7.2 for something other than
  work location, the data in this field must be
  moved elsewhere.
• Work location codes (including addresses) will
  need to be set up and assigned to employees in
  8.0.
• Mass Action can be used to populate location code
  if needed.

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7.2 to 8.0 Upgrade Considerations

• Time Record Interfaces?
• Existing time record interfaces will need to be
  modified.
• Location will replace the Tax Group field.

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7.2 to 8.0 Upgrade Considerations

• TaxFactory Database
• Up to 350 MB may be required for the TaxFactory
  database, depending on how many state address
  tables are needed.

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7.2 to 8.0 Upgrade Considerations

• TaxFactory Client
• Each person running PR140 must have the
  TaxFactory client and an ODBC connection on their
  PC in order to view error messages within
  TaxFactory during a pay cycle.
• Anyone performing TaxFactory maintenance must
  also have the TaxFactory client software
  installed on their PC. Their ODBC connection
  must have update access.

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7.2 to 8.0 Upgrade Considerations

• TaxFactory Install
• A single installation of TaxFactory CAN be used
  across multiple Lawson environments on the same
  machine. At least one installation is required
  on each Unix/NT machine.
• When more than one Lawson productline exists
  within the same Lawson environment, only one
  installation of TaxFactory is recommended.

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7.2 to 8.0 Upgrade Considerations

• Conversion from BSI Tax to BSI TaxFactory
• If you are currently using BSI Tax, a conversion
  to BSI TaxFactory is available. (BSI TaxFactory
  can be used with version 7.2.2, however,
  TaxLocator is only available with 8 Series.)
• Custom mappings, experience rates, etc. are
  converted from BSI Tax to BSI TaxFactory,
  therefore eliminating the need to re-setup this
  information.

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Questions ?
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BSI TaxFactory Menu

• Overview of BSI TaxFactory Menu and Functionality

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BSI TaxFactory / TaxFactory Canada

• The BSI TaxFactory desktop menu enables users to
• View tax-related error messages generated by
  PR140 or tax-related errors encountered in EE
  record additions/changes.
• Conduct testing on proper tax authorities
  required for employees
• Map tax codes, tax types and payment codes for
  interfacing with Lawson
• Input tax code override data for federal and/or
  state level unemployment insurance tax rates.

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BSI TaxFactory Menu

• This represents the BSI TaxFactory desktop
  menu.

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BSI TaxFactory Menu

• Direct access to BSIs home page is at the top
  of the menu.
• BSIs home page offers product, training and
  client-specific information.

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BSI TaxFactory Menu

• Error messages received while running payroll
  are displayed and viewed here.
• Both online (PR80) and batch (PR140) programs are
  listed in the viewer.

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BSI TaxFactory Menu
Regulatory Bulletins View and download available
bulletins directly from BSIs website. Cyclic
Bulletins Download platform specific TaxFactory
updates directly from BSIs website. Update
Lists all bulletins that have been applied.
Includes date and timestamp applied.
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BSI TaxFactory Menu

• TaxLocator (specific to the 8.0 version only).

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BSI TaxFactory Menu

• Allows you to test various tax scenarios.
  Similar to Lawsons PR89 Payment Modeling
  feature, but with capabilities of testing an
  entire batch of employees.

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BSI TaxFactory Menu

• Enter and maintain tax codes, tax types, payment
  codes and benefit/plan codes here.

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BSI TaxFactory Menu

• Modeling allows you to enter BSI company name
  information, unemployment experience rates and
  other custom tax data.

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BSI TaxFactory Menu

• The tax history report lists all past, current
  and future dated formulas that are in the
  TaxFactory database for a given authority.

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BSI TaxFactory Menu

• Tech Tools will be primarily utilized by your IS
  team.

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In Summary

• TaxLocator uses EE home address and location code
  to assign taxes
• Location code is required for U.S. employees
• TaxLocator automatically adds tax deductions
  (and/or ends existing ones) appropriately
• Conversion from BSI Tax to BSI TaxFactory is
  available

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Questions?