Next Generation Tax Engine Should Help With Tax Complience

Nearly every year, tax laws and payroll guidelines change. Last month, ADP announced the launch of its “Next Generation Tax Engine” that will help their clients stay up-to-date with the current and ever-changing tax laws.

According to HCM Technology Report, this latest development is designed to help companies minimize compliance risk and increase the effectiveness and efficiency of any size company which has a payroll. Not only is the tax engine able to process all federal, state, and local tax guidelines, but it is fully integrated with the PEO model.

Tax accountants, HR professionals, and C-Suite executives have all struggled to understand and be compliant with the tax law passed in 2017; companies have been nervous about being compliant with the new rules which have proved to be far more complex than in previous years.

The 2017 Tax Cuts and Jobs Act eliminated the individual mandate of the Affordable Care Act (ACA). Even with this, companies are still required to keep track of workers’ paid leave on FMLA, how they handled reimbursed costs such as moving or commuting expenses and the annual adjustment to maximum earning levels stipulated by the Social Security Administration.  

Add to these areas of concern the extended government shutdown in the last quarter of 2018. The shutdown directly affected the IRS and its ability to answer taxpayer and employer questions and concerns. ADP hopes that with the launch of its new tax engine, the company can more directly assist in reducing tax compliance concerns for its clients.

ADP said that in 2018, it filed approximately 67 million W-2s. The company indicated that this was a 5 percent increase over 2017.