Tax Resolution Excellence: Workforce.com vs. Industry Standard

Case Study 1: Mid-Quarter Provider Transition

Challenge: Customer switched to Workforce.com mid-quarter with incomplete returns from previous provider.

Industry Standard: Most providers would require the client to resolve issues with their previous provider or charge significant fees for manual corrections.

Workforce.com Approach: Submitted manual corrections free of charge, saving the client time, stress, and potential penalties.

Implications of Workforce.com Approach: Without Workforce.com’s intervention, the employer would face potential IRS penalties for incomplete filings, interest on unpaid taxes, and compliance violations that could trigger audits. The employer would also need to divert staff time to resolve the issue or pay their previous provider additional fees. Workforce.com eliminated these financial risks and administrative burdens completely.

Case Study 2: IRS EIN Merger Complication

Challenge: IRS automatically merged a customer’s two EINs, creating filing discrepancies.

Industry Standard: Typical providers might identify the issue but expect the client to resolve it directly with the IRS.

Workforce.com Approach: Invested hours on calls with the IRS to investigate the root cause, then manually reconciled transcripts with submissions to ensure compliance.

Implications of Workforce.com Approach: The standard approach would leave the employer facing potential IRS notices, penalties for apparent underpayment of taxes, and the need to hire specialized tax consultants to resolve the issue. These discrepancies could lead to incorrect tax assessments costing thousands of dollars and jeopardizing the company’s tax compliance record. By taking ownership of this complex problem, Workforce.com saved the client approximately 15-20 hours of specialized accounting work (valued at $3,000-5,000) and prevented potential penalties that could have exceeded $10,000.

Case Study 3: Late Discovery of Missing Payroll Data

Challenge: Client forgot to share January payruns during February implementation, only revealing this two weeks before federal filing deadlines the following January.

Industry Standard: Most providers would either charge rush fees, delay corrections until after deadlines, or require the client to file amendments themselves.

Workforce.com Approach: Rapidly produced corrected W-2s and completed all federal and state filings within just three business days.

Implications of Workforce.com Approach: The standard industry response would likely result in missed filing deadlines, triggering automatic IRS penalties (starting at $50 per W-2 and increasing to $260 for extended delays), plus separate state penalties. Employees would receive incorrect W-2s, potentially delaying their personal tax filings or requiring them to file amendments. The employer would face not only financial penalties but also diminished employee trust. Workforce.com’s rapid response prevented additional penalties and preserved the employer’s reputation with employees. Additionally, this quick resolution allowed employees to file their personal taxes on time without complications.