1. © 2005 Business Software, Inc. BSI TaxFactory™ 7.0 For Lawson US Payroll Presented by: Matthew Peck – BSI Manager, Sales & Marketing Daniel Miller – Lawson HR GSC Advisory Support Analyst

2. © 2005 Business Software, Inc. BSI TaxFactory 7.0 Currently there are 4,374 taxing authorities in the US comprised of Federal, States, Locals, and Possessions. BSI provides the tools which allow you to remain current with the myriad of legislative changes and regulations. The BSI and Lawson partnership (Since 1982) provides a comprehensive solution for managing payroll taxation –Tax Factory Locator QuickFormulas Wage Assessor ( New ) –Compliance Factory ( Future )

3. © 2005 Business Software, Inc. BSI TaxFactory 7.0 You must at least be on cyclic version E as of July 22 nd –This is required due to cyclic data format changes Cyclic 7.0.F.1 certified on October 11th –Unix/NT Lawson Payroll versions 8.0.1+ –Iseries Lawson Payroll version 7.2.2.5 + Resources for detailed information –http://support.lawson.com/Product/Product Communication/Critical Notificationhttp://support.lawson.com/Product/Product Release Announcement/Installation Alert IAN-BSI-050505-01 (Unix/NT) Release Announcement/Installation Alert IAN-BSI-050505-01 (iSeries)

4. © 2005 Business Software, Inc. Enhancements for Tax Factory 7.0 Indiana County Taxes Payroll version 7.2.X, 8.0.X & 8.1.0 Calculates taxes for employee based on January 1 st rule –Must establish January 1 st history; knowledge base articles 17762 and 116413 PR13 Work Authorities Payroll version 8.0.X & 8.1.0 Validates lived and worked where cities/counties are different but in same taxing authority – Oregon Trimet Tax Puerto Rico Supplemental Tax Method Payroll version 8.0.X & 8.1.0 Supports the Supplemental Commission Cumulative tax method for Puerto Rico See Knowledge Base article 116415: “Puerto Rico Supplemental Commission Tax Method” for more information

5. © 2005 Business Software, Inc. Enhancements for Tax Factory 7.0 Taxation of Periodic Pension Payments Payroll version 8.0.X & 8.1.0 Accommodates periodic pension payments that must be calculated at FWH 20% and SWH at normal tax rule Medicare Taxation for Public Sector Employers HR version 8.1.0 – only New field on HR11 for employees hired prior to 04/01/86 participating in the employer’s public sector retirement system programs

6. © 2005 Business Software, Inc. Public Sector Retirement Plan link on Lawson Public Sector Retirement field is available in 8.1.0 and above

7. © 2005 Business Software, Inc. Other BSI Tax Factory 7.0 Enhancements New TaxLocator API parameters Hire Date Public Sector Retirement Plan Member indicator edit Additions to TaxCalculation API Date of Birth - Used for Akron, OH only Additions to PensionTax API Employee API Disbursement date Company Plan indicator Rollover eligible indicator Rollover months

8. © 2005 Business Software, Inc. Other BSI Tax Factory 7.0 Enhancements con’t Security – Added security features at the user and module level. Additions to Modeling Tools Added the field “end date” for payment override and custom earnings/payments Additions to What-if Test Tool Added earnings and benefit plan input/output info on screen results Corrected field overflow issue on Reciprocal Percent Worked

9. © 2005 Business Software, Inc. Other BSI Tax Factory 7.0 Enhancements con’t Federal Supplemental Withholding 35% rule for employees earning over $1,000,000 Available in TF7.0.E Documentation now Online Moved from client desktop to the client portal (TF6.0.L). Hosted documentation allows for timely updates.

10. © 2005 Business Software, Inc. Other Information you need to know... Wage Assessor integration Contains all the rules for every type of earning for all employer and employee federal, state, possession, county, city and other local taxes Solves current issues with taxation on non-regular earnings codes where reciprocity agreements apply

11. © 2005 Business Software, Inc. Examples Group Term Life For benefits valued above $50,000 - employers must withhold on the taxable amount for SS and MED (IRS regulations) Benefits valued above $50,000 – employers are not required to withhold on the taxable amount for FWH, SWH and LWH (with exceptions) Example: Pennsylvania State requirements (ie; Philadelphia) Federal WithholdingNo Social SecurityYes MedicareYes State WithholdingNo Local WithholdingYes (or optional) May have caused the need for manual adjustments? Trickier for those ee’s who live and work in different states with different taxation rules. Reportable vs. Taxable

12. © 2005 Business Software, Inc. Other Information you need to know con’t... Qualified Transportation Benefits Enhance PR140 Check limits under Section 132 rules Pass MTD, QTD and YTD to validate taxable limits Educational Assistance Managing to the $5,250 annual exclusion limit

13. © 2005 Business Software, Inc. TaxFactory 7.0 Cyclic Version F Expanded Locator version 2 data Local data added for both Oregon & West Virginia Expanded Wage Assessor Functionality  Presently Lawson sends all wages as Regular Wages  NEW! Ability to define withholding tax as optional for specific earnings codes  Available TF7.0.F.1 Cyclic 7.0.G on target for December release  New Interface Values: EIC, Locator, Messaging

14. © 2005 Business Software, Inc. Additional BSI Products ComplianceFactory™ (BSI supported interface) –PaymentFactory™ Simplifies the processing of all payroll tax payments, direct deposits to employee accounts and fund impounds. EFT Authorization forms, Pre-notes, Treasury Warrants –ReportFactory™ Allows end-user control of payroll tax reporting and filing Federal, State, Local, Possession Non-Periodic Forms: Power of Attorney Supports Multiple Worksite Reporting –1099Factory™ Supports Federal MISC., DIV., INT., and R; includes all required secondary transmittal forms, such as the 1096 & 4808

15. © 2005 Business Software, Inc. BSI 7.0 Information “TaxFactory 7.0 New Features FactSheet” Article #116417 IAN-BSI-050505-01 (iSeries) IAN-BSI-050505-01 (Unix/NT) http://support.lawson.com

16. © 2005 Business Software, Inc. Thank You For Your Time!!! Dan Miller Advisory Support Analyst Lawson Software, Inc. Matthew Peck Manager, Sales & Marketing Business Software, Inc.