The Challenge
This Topia client is a private equity firm headquartered in San Francisco.
The City of San Francisco, like many major US cities, imposes local taxes on revenue earned from employee activities performed within their city limits. In San Francisco, there are three combined taxes that can total up to 2.2% of total revenue, and it is up to the business to calculate their tax obligation and report it quarterly.
Due to the impacts of Covid, and subsequent transition to remote work, our client knew their employees were spending less time working in the city, but weren’t exactly sure how much. With less work being done in the city, it was possible the client was overpaying their tax obligation.
Our client needed an audit-defensible way to accurately determine how much time was being spent by each employee working in San Francisco, but also needed a solution that: