BSI TaxFactory

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BSI TaxFactory 7.0 For Lawson US Payroll

• Presented by
• Matthew Peck BSI
• Manager, Sales Marketing
• Daniel Miller Lawson HR GSC
• Advisory Support Analyst

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BSI TaxFactory 7.0

• Currently there are 4,374 taxing authorities in
  the US comprised of Federal, States, Locals, and
  Possessions.
• BSI provides the tools which allow you to remain
  current with the myriad of legislative changes
  and regulations.
• The BSI and Lawson partnership (Since 1982)
  provides a comprehensive solution for managing
  payroll taxation
• Tax Factory
• Locator
• QuickFormulas
• Wage Assessor (New)
• Compliance Factory (Future)

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BSI TaxFactory 7.0

• You must at least be on cyclic version E as of
  July 22nd
• This is required due to cyclic data format
  changes
• Cyclic 7.0.F.1 certified on October 11th
• Unix/NT Lawson Payroll versions 8.0.1
• Iseries Lawson Payroll version 7.2.2.5
• Resources for detailed information
• http//support.lawson.com/Product/Product
  Communication/Critical Notification
• Release Announcement/Installation Alert
  IAN-BSI-050505-01 (Unix/NT)
• Release Announcement/Installation Alert
  IAN-BSI-050505-01 (iSeries)

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Enhancements for Tax Factory 7.0

• Indiana County Taxes
• Payroll version 7.2.X, 8.0.X 8.1.0
• Calculates taxes for employee based on January
  1st rule
• Must establish January 1st history knowledge
  base articles 17762 and 116413
• PR13 Work Authorities
• Payroll version 8.0.X 8.1.0
• Validates lived and worked where cities/counties
  are different but in same taxing authority
  Oregon Trimet Tax
• Puerto Rico Supplemental Tax Method
• Payroll version 8.0.X 8.1.0
• Supports the Supplemental Commission Cumulative
  tax method for Puerto Rico
• See Knowledge Base article 116415 Puerto Rico
  Supplemental Commission Tax Method for more
  information

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Enhancements for Tax Factory 7.0

• Taxation of Periodic Pension Payments
• Payroll version 8.0.X 8.1.0
• Accommodates periodic pension payments that must
  be calculated at FWH 20 and SWH at normal tax
  rule
• Medicare Taxation for Public Sector Employers
• HR version 8.1.0 only
• New field on HR11 for employees hired prior to
  04/01/86 participating in the employers public
  sector retirement system programs

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Public Sector Retirement Plan link on Lawson
Public Sector Retirement field is available in
8.1.0 and above
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Other BSI Tax Factory 7.0 Enhancements

• New TaxLocator API parameters
• Hire Date
• Public Sector Retirement Plan Member indicator
  edit
• Additions to TaxCalculation API
• Date of Birth - Used for Akron, OH only
• Additions to PensionTax API
• Employee API
• Disbursement date
• Company Plan indicator
• Rollover eligible indicator
• Rollover months

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Other BSI Tax Factory 7.0 Enhancements cont

• Security Added security features at the user
  and module level.
• Additions to Modeling Tools
• Added the field end date for payment override
  and custom earnings/payments
• Additions to What-if Test Tool
• Added earnings and benefit plan input/output info
  on screen results
• Corrected field overflow issue on Reciprocal
  Percent Worked

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Other BSI Tax Factory 7.0 Enhancements cont

• Federal Supplemental Withholding
• 35 rule for employees earning over 1,000,000
• Available in TF7.0.E
• Documentation now Online
• Moved from client desktop to the client portal
  (TF6.0.L).
• Hosted documentation allows for timely updates.

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Other Information you need to know . . .

• Wage Assessor integration
• Contains all the rules for every type of earning
  for all employer and employee federal, state,
  possession, county, city and other local taxes
• Solves current issues with taxation on
  non-regular earnings codes where reciprocity
  agreements apply

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Examples
Trickier for those ees who live and work in
different states with different taxation rules.
Reportable vs. Taxable

• Group Term Life
• For benefits valued above 50,000 - employers
  must withhold on the taxable amount for SS and
  MED (IRS regulations)
• Benefits valued above 50,000 employers are not
  required to withhold on the taxable amount for
  FWH, SWH and LWH (with exceptions)
• Example
• Pennsylvania State requirements (ie
  Philadelphia)

Federal Withholding No
Social Security Yes
Medicare Yes
State Withholding No
Local Withholding Yes (or optional)
May have caused the need for manual adjustments?
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Other Information you need to know cont . . .

• Qualified Transportation Benefits
• Enhance PR140
• Check limits under Section 132 rules
• Pass MTD, QTD and YTD to validate taxable limits
• Educational Assistance
• Managing to the 5,250 annual exclusion limit

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TaxFactory 7.0 Cyclic Version F

• Expanded Locator version 2 data
• Local data added for both Oregon West Virginia
• Expanded Wage Assessor Functionality
• Presently Lawson sends all wages as Regular Wages
• NEW! Ability to define withholding tax as
  optional for specific earnings codes
• Available TF7.0.F.1
• Cyclic 7.0.G on target for December release
• New Interface Values EIC, Locator, Messaging

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Additional BSI Products

• ComplianceFactory (BSI supported interface)
• PaymentFactory
• Simplifies the processing of all payroll tax
  payments, direct deposits to employee accounts
  and fund impounds.
• EFT Authorization forms, Pre-notes, Treasury
  Warrants
• ReportFactory
• Allows end-user control of payroll tax reporting
  and filing
• Federal, State, Local, Possession
• Non-Periodic Forms Power of Attorney
• Supports Multiple Worksite Reporting
• 1099Factory
• Supports Federal MISC., DIV., INT., and R
  includes all required secondary transmittal
  forms, such as the 1096 4808

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BSI 7.0 Information
http//support.lawson.com

• TaxFactory 7.0 New Features FactSheet
• Article 116417

IAN-BSI-050505-01 (Unix/NT)
IAN-BSI-050505-01 (iSeries)
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Thank You For Your Time!!!
Dan Miller Advisory Support Analyst Lawson
Software, Inc.
Matthew Peck Manager, Sales Marketing Business
Software, Inc.