When Pennsylvania Act 32 was passed in 2008, it left payroll managers everywhere scrambling for a solution to quickly pinpoint how local taxes would be calculated. Carol Egloff and Laura Winters were no exception. With 9,000+ employees in the state of Pennsylvania, they knew they needed a solution that would allow them to quickly and accurately determine in which jurisdiction every employee lived and worked. The individual areas defined in Pennsylvania Act 32 were so specific that cross-streets were not accurate enough to determine the correct jurisdiction.
Additionally, Sodexo Payroll Tax needed to partner with Human Resources to ensure that employees who were newly hired, rehired, or transferred into or out of Pennsylvania, would have accurate tax codes for the appropriate local tax withholding. They knew there had to be an automated solution for their problem.
At the American Payroll Association's National Payroll Congress, both Egloff and Winters searched the vendor hall to find the automated solution they knew had to exist. Enter Frank Tresnak and Payroll Point. Tresnak provided an initial demonstration in the vendor hall, and then followed up with a formal presentation to Sodexo that allowed Egloff and Winters to better understand Payroll Point. Sodexo saw their solution to Pennsylvania Act 32 in the product, and realized that it could be used to assist with other states' local taxes as well.
Egloff and Winters were also both familiar with PaycheckCity.com, and when they learned Payroll Point was produced by the same company, they knew it would be a product they could trust. The more they learned, through Tresnak's demonstrations and speaking with him, the more confident they were in the product. When Egloff and Winters found out about the "upload" feature, they were very excited! They knew this product would be a great tool for them, and decided to implement it.
"Payroll Point has helped Sodexo accurately withhold local taxes for their employees, and has reduced tax jurisdiction notices, employee tax corrections, and W-2Cs." - Carol Egloff, Payroll Manager
After implementing Payroll Point, the Sodexo Payroll Tax team was able to determine the correct tax jurisdictions, the appropriate tax codes and rates for their Pennsylvania employees, using each employee's work address and home address.
But Sodexo took the power of Payroll Point even further, and worked with Tresnak to fix more than just the localities of Pennsylvania. In 2012, Sodexo decided to undertake a new project, using Payroll Point as the main implementation tool. With Tresnak's guidance, Winters produced state-specific reports and used the Payroll Point "address tool" to create a Local Tax Matrix by Unit, and related audit reports for other states with local taxes.
As a result, Sodexo's Payroll Tax Team is able to create audit reports that show if an employee has changed his or her address or work location and combine it with a report of new hires, re-hires, and transfers to determine which tax codes need to be updated in order to withhold the proper taxes. The report is sent to the HR Department and modified that day. This same-day process enables employees to receive accurate paychecks, and keeps Sodexo in tax compliance.
Sodexo serves clients across multiple industries, including education, healthcare, senior living, business, sports and leisure, and government and remote sites. The number one goal of the company is Quality of Life, and Sodexo strives to infuse their work with the potential and support of their local communities. Sodexo has over 100,000 people on payroll in the United States alone.