Are you looking for a more efficient way to verify your employees are being withheld proper resident taxes? Does your current process involve verifying tax jurisdictions and manually assigning tax codes? With Smart Tax.. your manual process can be eliminated! The Smart Tax feature will automatically return recommended payroll tax codes associated with an entered address

• When enabled, this feature recommends U.S. federal, state, and local tax codes associated with work locations and employee resident addresses.
• Smart tax Search uses Geographic Information System (GIS) technology to obtain geographic data for a location and map the data to tax codes in UKG Pro. This mapping eliminates the existing manual process of determining the appropriate tax codes for work and employee resident locations.

Additional Smart Tax Feature Benefits Include:

• Alleviates manual work
• Reduces errors when assigning taxes
• Streamlines assigning tax codes
• Saves time, and increases the quality and accuracy of data

***Less manual work means less opportunities for error and improved data accuracy!

Best Practices:

In conjunction with Smart Tax, below are best practices to ensure employee tax updates are being applied successfully and reviewed during payroll processing:

1. Setup and utilize a Workflow within UKG on employee address changes to include a notification to payroll processors
2. Ensure payroll processors are auditing taxes that are being withheld on the payroll following the approved change of address to verify correct taxes are being withheld.
3. Employees should be reviewing their pay checks each pay date, including those after an approved address change in the system to ensure correct taxes are being withheld.
4. Employer audit of W-2 Summary and detail data reports during the calendar year and when preparing for year-end processing for W-2 creation
5. Employee review of their W-2 each fiscal year

If you are interested in learning more about the Smart Tax Feature within UKG Pro, please see the attached SOP, as well as an FAQ for commonly asked questions regarding Smart Tax. Please reach out to the HCM Service Team  at hcmservice@plansource.com or 407-447-3837, if you would like to enable the feature, or have any additional questions.