Accuracy in payroll is crucial for many different reasons. If an employee is not set up correctly upon onboarding, employers can be fined, subject to audits, and have a stressful tax season with W-2s.
With this in mind, let’s dive into the importance of location accuracy.
Location accuracy refers to the location or locations an employee works or lives. When these two locations are compared, an employer has an idea of what tax withholdings need to be taken from an employee’s check. This is especially the case with more employees working from home in different states than the office that employs them.
Location accuracy can become complicated very quickly though. City boundaries, wage rates, and taxes can change depending on the area. Some places even have unexpected changes such as the City of Berkeley in California. The city boundaries line up to where a person could technically be in the area code of Berkeley and be in a completely different city. Boundaries like these can cause employers to have incorrect area codes and cost them fees down the line.
So how can this be avoided?
Geocoding is one of Symmetry Software’s signature features found in our software tools. It ensures the most accurate tax calculations by translating addresses into coordinates. These coordinates are then pinpointed on tax boundary shapefiles to return withholding forms, taxes, and wage rates that apply to each employee.
In summary, geocoding can also
- Be a way to audit employee work and home addresses
- Ensure employees have completed the correct withholding forms
- Ensure employees have accurate tax setups
Geocoding allows Symmetry Software to return applicable and accurate data for our main products. To learn more about these products and how they fit into your company's needs, contact us.