Gross to Net Calculations
Zeal maintains an updated payroll engine that accommodates for all 11,000+ tax jurisdictions and 25,000 annual payroll tax updates. Our system takes an input of gross wages and will calculate the proper gross-to-net calculations given the most updated effective rules to produce net wage values.
Multi-Layer Jurisdiction Mapping
Payroll calculations are not just determined by county-level or zip-code level, but rather by complex layering of maps that require geocoding.
Zeal’s geomapping tool (i) normalizes addresses into a standard format; (ii) uses geographical coordinates for determining precise location of an address; (iii) geocodes addresses to rooftop, street, neighborhood, and community level.
Precision in multi-layer jurisdiction mapping is especially important since the exact location where an employee works and lives will determine their tax calculations.
Tax Library Database
Zeal has built a tax library database from scratch, which serves as a single source-of-truth for payroll tax law. Our tax library accounts for all 11,000+ tax jurisdictions in the United States.
Building a tax library database from scratch is tough, because government departments post payroll information in varying formats, across multiple different platforms. Sometimes local departments don’t even post tax laws on a central database or website, but rather through hidden press releases. Zeal has built a scalable system for scraping payroll updates and surveying government departments to gain access to the most up-to-date payroll values.
This tax library is the most comprehensive and updated tax library engine, which allows Platforms to have security in outsourcing one of the most challenging aspects of determining payroll calculations.
Source of Truth Resolution
Federal, state, and local departments each pass independent laws that are conflicting, difficult to interpret, and difficult to implement.
On behalf of Platforms, Zeal evaluates all payroll tax law and surveys government departments to resolve tax issues. This relieves the Partner from hiring tax analysts to research payroll tax matters. In other words, if a Platform receives a question from a Customer in regards to why the payroll engine built a certain type of logic, Zeal would be able to provide clear responses as to the source of truth that was prioritized for a calculation.
There are 25,000+ annual payroll tax code updates each year. This is particularly why purchasing on-prem software and acquiring payroll companies is such a low ROI for platforms. Since the landscape of payroll is always changing, Platforms need tools to manage payroll tax volatility.
Puzzl continuously monitors and schedules all viable payroll tax code updates to ensure that Platforms always have the most updated payroll engine. The value of accessing a payroll engine via API is that data is always reconfigured with no effect to a Platform’s code base.
Reporting & Filing
The first process of Reporting & Filing appears during onboarding when the following is required: New Hire Reporting, Multiple Worksite Reporting, 1099 Nonemployee Reporting, Equal Employment Opportunity (EEO-1) Survey Collection, State Power of Attorney Reporting, and State Electronic Deposit Authorization.
The next part of Reporting & Filing arises during the ongoing Reporting: Equal Employment Opportunity (EEO-1) Survey Collection, State Power of Attorney Reporting, and State Electronic Deposit Authorization.
During the ongoing payroll processing reporting & filing requirements include: Reporting and Filing wages to Federal, State, and Local tax agencies semiweekly, Filing forms 940, 941, 943, 945; Filing forms 1099-NEC, W-2, W-3, and Filing correction forms for each type of document aforementioned.
Unlike legacy systems, Zeal has built the process of collecting and reporting records from scratch. Forms are auto-generated and uploaded into white-label dashboards and are accessible through API endpoints for easy access.
Penalty Management & Remittances
Since a payroll provider is a Reporting Agent and Power of Attorney for a Company, they are responsible for managing penalties. This process includes detecting penalties, informing a Customer of an upcoming / potential penalty, and resolving the penalty.
Through the API and our internal front-end tool, Zeal organizes all penalties on behalf of the Platform. This completely relieves the Platform of the responsibility of sorting penalties.
New Hire Reporting
Employers are required to report each new W-2 employee or 1099 contractor they hire to state and federal government agencies. This is an essential process that allows states to track the location of the worker in the case of government mandates like child support, tax levies, and garnishment requests.
Zeal reports standard Employee contact information to the proper state as soon as an employee is onboarded and receives their first paycheck.
Multiple Worksite Reporting
Zeal performs Multiple Worksite Reporting with The United States Bureau of Labor Statistics. By collecting and storing employment and wage data by worksite, states can disaggregate this data below the county level for more extensive and detailed analysis of business and economic conditions within their State, including local and regional employment totals. This data is used to ensure an equitable distribution of Federal funds through grant programs that use county economic indicators as a basis for allocations.
1099 Contractor Tracking
Zeal automatically tracks how much a contractor earns in a particular fiscal year from an Employer and will automatically generate a Form 1099 through our W2 and 1099 End Of Year Service.
Employers need to track 1099 contractor wages in order to determine whether they need to issue a 1099 contractor a Form 1099 at the end of the year. When a contractor earns $600 or more in a particular fiscal year from an Employer, they must receive a Form 1099.
W-2 & 1099 EOY Service
Zeal automatically tracks W-2 employee & 1099 Contractor wages, files the requisite forms for each worker, and gives the worker an electronic copy they can download and print for their own records.
State POA Authority Reporting
Zeal collects proper documentation of our authority as a Power of Attorney and Electronic Funds Transmitter on a state-by-state basis. This collection of documentation, in combination with the IRS Form 8655 which is collected during Company onboarding, ensure that Zeal’s legal entity is classified as the Payroll Reporting Agent on all Employer Reporting documents.
Child Support, Garnishment, and Tax Levy Service
Employers from time to time will be required to withhold additional amounts of earnings from an employee due to a Child Support, Garnishment, and Tax Levy issued. Zeal takes the lead on researching and updating an employee’s earnings in relation to the tax notice outline. Employers can upload the tax notice letter in their dashboard and a Zeal support rep will communicate via a support tool or API endpoint the ongoing status of the changes in an employee’s payroll moving forwards.
Payroll Processing Management
Payroll providers must manage sub-account reporting, filing, and disbursement schedules for all Employers. To build this feature, platforms must aggregate local, state, and federal deadlines and build their own scheduling engine to keep track of deadlines.
Disbursement to Tax Agencies
Zeal manages tax reserves on behalf of Employers and their employees. The disbursement process includes managing a record system for reserves of each Employer, making payments on behalf of each Employer to federal, local, and state agencies, and managing a Treasury.