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U.S. Payroll Tax Software Solutions

Streamline and enhance your payroll tax processes and virtually eliminates the burden associated with employer and employee tax calculations.

Home » BSI Solutions That Fit Your Needs » TaxFactory™

TaxFactory™

Eliminate the Burden of Payroll Tax Calculation and Filing

TaxFactory is a payroll tax calculation solution that helps to streamline and enhance your payroll tax processes and virtually eliminates the burden associated with employer and employee tax calculations.

This dependable, hard-working single-source tool, with a built-in TaxLocator™, is designed to integrate easily and quickly with your payroll system. TaxFactory automatically responds to the demands of your payroll system, providing tax location and assignment, wage, tax and wage attachment calculations, including reciprocal taxes, IRS qualified benefit plan and much more.

Our solution also includes robust support for tax calculations on Pension payouts for Annuity, Eligible Rollover Distribution, Lump-Sum Distribution, and Premature Distribution from Qualified Plans.

Calculating accurate payroll taxes across federal, state, and local jurisdictions requires constant attention to changing regulations, reciprocal agreements, and specialized scenarios like garnishments and pension distributions. TaxFactory™ from BSI eliminates that burden by delivering a single, integrated U.S. payroll tax calculation engine that handles gross-to-net, garnishment, pension tax, and reciprocal tax computations with precision. Equipped with built-in TaxLocator™ technology, TaxFactory automatically identifies the correct tax jurisdictions and applies the right rules to each transaction, including IRS-qualified benefit plan calculations and pension payouts such as annuities, eligible rollover distributions, lump-sum distributions, and premature distributions. Designed to integrate quickly with existing payroll systems, the platform serves payroll vendors, service bureaus, government agencies, healthcare facilities, and educational institutions of every size. By automating complex calculations and tracking regulatory changes, TaxFactory frees payroll teams from repetitive manual updates so they can focus on strategic priorities.

TaxFactory™ reviews and customer stories

Before choosing a software solution, see how teams like yours use BSI to save hours every month, eliminate workflow surprises, and successfully manage their projects with reliable technical support.

Need help selecting a Payroll Tax Solutions Partner?

BSI’s Guide for Selecting a Payroll Tax Solution Partner offers helpful tips
and factors to keep in mind when choosing a payroll tax solution for your organization.

FAQ

What is TaxFactory and what types of payroll tax calculations does it perform?

TaxFactory is BSI's U.S. payroll tax calculation engine that automates gross-to-net, garnishment, pension tax, and reciprocal tax computations in one integrated platform. It applies the correct federal, state, and local rules to every transaction, including IRS-qualified benefit plan calculations, ensuring accurate and compliant payroll processing across all jurisdictions.

How does TaxFactory handle pension and retirement plan tax calculations?

TaxFactory supports a full range of pension payout scenarios, including annuities, eligible rollover distributions, lump-sum distributions, and premature distributions. The engine automatically applies the appropriate IRS tax rules to each payout type, eliminating manual lookups and reducing the risk of miscalculation on retirement-related disbursements.

Does TaxFactory support garnishment and wage attachment calculations?

Yes. TaxFactory includes dedicated garnishment calculation functionality that handles wage attachments according to federal and state requirements. It automates the deduction logic, prioritization, and limits required by different garnishment types, reducing the manual workload on payroll teams and helping organizations stay compliant with court-ordered withholdings.

How does TaxFactory keep up with constantly changing tax laws?

TaxFactory tracks regulatory changes at the federal, state, and local levels and updates its tax engine automatically, so payroll teams do not need to monitor legislation manually. This continuous update model ensures every calculation reflects the most current rates, thresholds, and compliance rules without requiring user intervention.

What types of organizations use TaxFactory?

TaxFactory is used by payroll vendors, service bureaus, government agencies, healthcare facilities, educational institutions, and large employers managing multi-jurisdictional workforces. Customers range from county and city governments to hospital systems, universities, and library systems supporting thousands of employees across multiple states.

How does TaxFactory integrate with existing payroll systems?

TaxFactory is designed to integrate quickly with most major payroll systems through a flexible architecture that responds automatically to payroll system demands. The integration enables real-time tax calculations within existing workflows, eliminating the need to switch platforms or duplicate data entry between systems.

Complementary Products and Services

Check out BSI solutions and services to solve payroll tax compliance issues.

Payroll Tax Compliance Software to Improve Efficiency

Manage payroll tax processes and to maintain compliance with Federal, State, Local and Territory regulations.

U.S. Employee Tax Profile Solution

Automatically maintain employee tax profiles for Federal, State, Local and Territory taxes and remove the burden of having to detect and make profile and assignment changes in a timely manner.