Workforce Model includes a tax model for different payroll tax obligations by country, state or province

Description

This function allows organizations to operate according to regional, national, and international tax obligations. It aids companies in streamlining their financial planning by ensuring future employer expenses are properly calculated by region without requiring the finance team to constantly update individual locales.

Example Use Case

Scenario: A global consulting firm uses CPM software for budgeting and workforce planning. The firm has employees in various countries with varying payroll tax obligations at the country, state, and province levels.

Solution: Incorporating a tax model in the CPM software considers different payroll tax obligations per location. For instance, in Canada employers must contribute to Canada Pension Plan while in the United States employers must pay a portion of the employees Social Security obligation. The software will automatically calculate and consider these while budgeting and planning for the workforce, creating accurate financial forecasts.

Considerations

Many products on the market have a template to store tax obligations based on a region / location combination (country / state) by year. However, this usually requires that the user edit the values each year based on new government rules. If you require these fields to be updated automatically, make sure to ask.

Questions to Ask a Vendor

• Updated tax legislation: How frequently is the tax model updated to reflect changing tax legislations?
• Customization Capabilities: How easily can the tax model be customized to meet unique payroll tax obligations? For example, what if we add a country that you do not support?
• Manual Updates: Can we update the tax rule ourselves if it is not updated manually?
• Allocated Employees: If an employee is split across two different locations, will the system also split the tax burden?