Ohio Healthcare Provider Untangles Local Payroll Taxes

Background

This Business Software, Inc. (BSI) client – a health system based in Ohio – operates multiple facilities in the state. As a growing healthcare provider, the organization faces the complex task of managing payroll for a workforce that experiences frequent turnover and expansion across new locations. With Ohio having one of the highest numbers of local payroll taxes in the nation, second only to Pennsylvania, the challenge of managing tax compliance efficiently is amplified due to the volume of local payroll taxes in Ohio.

Challenge

Managing and assigning local payroll taxes proved to be a recurring challenge for the client. Each new hire or employee relocation required a manual process of researching live and work addresses, identifying applicable local taxes, and validating the assignments. This process often took 30 to 60 minutes per employee, consuming valuable time and resources from the payroll team.

As the organization grew, the manual effort became even more demanding. Employee turnover and expansion amplified the workload, and in some cases, local tax forms were overlooked, creating additional compliance concerns.

Solution

To streamline and strengthen their payroll tax process, the client implemented TaxProfileFactory™ from BSI. TaxProfileFactory automates the determination and assignment of local payroll taxes, reducing the need for manual research and assignments. This solution allowed the client to simplify onboarding, minimize time spent per employee on tax setup, and lower the risk of missing required tax forms.

With TaxProfileFactory, this healthcare system gained a scalable approach to managing local payroll taxes, helping the payroll team reallocate time toward broader HR and operational goals.