This is important to our customers, and we wanted to make the update available as soon as possible.
Norcross, Georgia (PRWEB) December 30, 2011
Business Software, Inc. (BSI®), a leading provider of comprehensive payroll tax calculation and compliance solutions, announced today that it quickly modified its payroll tax calculation software when Congress extended the reduced Employee Social Security Tax Rate through February 2012.
The two-month extension of the payroll tax cut was signed by the President on Friday, December 23, and updates were made available to BSI customers for implementation immediately after the holidays on Tuesday, December 27, for both BSI TaxFactory™ SaaS (on-demand) and BSI TaxFactory (on-premise) versions.
“We closely monitored the Congressional vote and remained on alert to implement the changes once the Temporary Payroll Tax Cut Continuation Act of 2011 was passed by Congress and signed by the President,” said Russell Rindik, BSI Vice President of Operations. “This is important to our customers, and we wanted to make the update available as soon as possible.”
Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011, according to the IRS. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.
Employers should implement the new payroll tax rate as soon as possible in 2012 but no later than Jan. 31, 2012, according to the IRS. For any Social Security tax over-withheld during January, BSI TaxFactory’s self-adjusting feature will automatically make the appropriate adjustments, relieving employers of having to make any manual adjustments in workers’ pay.
About BSI TaxFactory
BSI TaxFactory automates payroll tax calculations for the most complex payrolls and helps any size company meet ever-changing regulatory requirements. Save time and improve productivity through BSI TaxFactory’s scalable, innovative technology that integrates with internal Payroll and Deferred Income systems and quickly processes a high payroll volume. Increase accuracy with comprehensive coverage for Federal, State, local and territory tax jurisdictions. BSI TaxFactory is available on-premise or on-demand (SaaS).
For more than 32 years, BSI has provided industry-leading payroll tax calculation and compliance solutions that help businesses meet ever-changing tax regulations and compliance standards while improving payroll efficiency and reducing costs. Starting with BSI-TAX in 1979, BSI solutions have offered innovative, scalable technology; seamless integration; and comprehensive U.S. payroll tax coverage to payroll vendors, service bureaus and individual organizations. BSI remains focused on adapting to changing customer needs, recently introducing SaaS versions of BSI TaxFactory and BSI ComplianceFactory™ so customers have a choice of on-premise, on-demand (SaaS), or a combination of both. BSI solutions fit any size or type of company in any industry.