Precision in Every Paycheck: How a Community Hospital Streamlined Payroll Tax Calculations

Background

This Business Software, Inc. client is a non-profit, independent hospital located in Pennsylvania. With more than 1,900 employees, the hospital provides a full spectrum of healthcare services to surrounding rural communities. Like many healthcare organizations, this client must manage various payroll tax withholdings while maintaining compliance with Federal, State, and Local regulations.

Challenge

Managing payroll taxes in a healthcare setting presents unique challenges. The client’s Payroll team struggled with:

• Keeping up with the taxability of benefits like uniform allowances or on-call stipends
• Navigating varying state and local tax requirements across facility locations

These challenges made it difficult for the team to maintain accuracy and compliance without expending excessive time and resources.

Solution

To help alleviate these problems, this hospital implemented BSI’s TaxFactory™, a solution designed to manage payroll tax calculations with high precision and reliability.

By integrating TaxFactory into their payroll process, the client was able to:

• Eliminate manual tasks related to tax updates, testing and assignment
• Ensure relevant location jurisdictions, rates and rules applied
• Reduce the time spent on payroll tax calculation and validation
• Minimize the risk of costly penalties due to incorrect authorities or outdated tax rates

TaxFactory provided a robust, dependable framework that aligns seamlessly with the client’s existing payroll system, enabling their team to focus on strategic tasks instead of repetitive tax updates.

BSI’s TaxFactory transformed this medical facility’s payroll tax process, improving accuracy and compliance, and freed up internal resources—all while supporting their mission of delivering exceptional healthcare to the community.