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Introduction: The Journey to Lasinja
In 2013, Shomari Moorehead hired his first employee. As a business owner in the Virgin Islands, he couldn’t find a cloud-based payroll solution that worked for the region. To get by, he used a free online payroll calculator, setting the state to Florida since Florida has no state income tax. When that tool was shut down in 2018, he created a custom-built Excel spreadsheet for calculating payroll taxes. Over time, the spreadsheet was enhanced with summary reports for tax filings.
In March 2019, Shomari recognized that there had to be a better way to calculate payroll efficiently and accurately. He set out to create Lasinja, a modern, cloud-based payroll solution tailored specifically to the Virgin Islands.
The Problem: A Gap in Payroll Solutions
Almost all online payroll processing applications fail to support the Virgin Islands. As a result, over 3,500 employers calculate payroll manually through accountants or using QuickBooks Desktop. This method of payroll calculation is time-consuming and error-prone due to the following reasons:
- Manual Calculation: Businesses in the Virgin Islands had to rely on outdated tools and manual calculations, a tedious and error-prone process.
- Tax Filing Issues: Re-entering payroll data into tax forms was not only time-consuming, but also prone to mistakes, leading to costly errors and compliance issues.
- Lack of Suitable Solutions: With QuickBooks Desktop phasing out payroll support, businesses were left without a reliable, digital alternative.
The Opportunity: A Solution to Save Time and Reduce Errors
Payroll and Gross Receipts taxes are a fundamental part of doing business in the Virgin Islands. Calculating payroll taxes and filling out tax forms manually took an average of 2-6 hours every pay period, depending on the size of the business. The Virgin Islands is home to approximately 3,500 private sector employers and 25,000 private sector employees, and all of these businesses needed a more efficient way to manage payroll.
This created a clear opportunity for a digital tool that could:
- Quickly calculate payroll taxes.
- Generate necessary tax forms for filing, reducing errors.
- Save businesses valuable time in processing payroll.
The Solution: Lasinja - A Digital Payroll Solution for the Virgin Islands
Lasinja was developed to meet the unique payroll challenges of the Virgin Islands:
- Streamlined Payroll Calculation: Businesses can quickly and accurately calculate payroll in just a few clicks, without the need for manual calculations or outdated systems.
- Automated Tax Form Generation: Lasinja generates tax forms like the 941, 941VI, and 501VI, along with year-end forms (W2, W3, 1099), ensuring compliance with local regulations.
- Employee Portal: Employees have access to an intuitive portal where they can view their payroll history, resend pay statements, and download W-2 forms.
- NACHA File Generation: Businesses can generate NACHA files to speed up their direct deposit process, making payments faster and more efficient.
- E-Filing and Direct Deposit Automation: Lasinja is working on e-filing capabilities and automated direct deposit payments to further enhance the payroll experience.
Security: Protecting Business and Employee Data
Security is a top priority for Lasinja:
- Hosted on Amazon Web Services EC2 servers with SSH key-based authentication
- Role-based access ensures that only authorized users can access specific data.
- Encrypted backups are taken hourly to ensure data integrity.
- All identifying employee information is stored in encrypted form
- Short login sessions and access logging protect against unauthorized access and ensure full audit trails.
Results: Time Savings, Accuracy, and Efficiency
Lasinja has drastically improved payroll processing for businesses in the Virgin Islands:
- Time Savings: Businesses can now save 2-6 hours per pay period, eliminating manual calculations and reducing tax filing preparation time.
- Reduced Errors: By automating tax calculations and form generation, Lasinja minimizes errors, ensuring compliance with Virgin Islands tax laws.
- Increased Efficiency: The employee portal and NACHA file generation streamline payroll processes, making it faster and more convenient for both businesses and employees.
- Adoption of Digital Practices: Lasinja has helped businesses embrace modern, digital payroll solutions, providing a reliable alternative as QuickBooks phases out their payroll solution.
Client Testimonials
“Lasinja has completely transformed how we handle payroll. What used to take hours is now done in minutes, and we never have to worry about errors in our tax forms anymore.”
Conclusion: Empowering Local Businesses with a Modern Payroll Solution
Lasinja is more than just a payroll tool; it’s a comprehensive solution that empowers businesses in the Virgin Islands to embrace digital payroll processing. By automating payroll calculations, tax form generation, and payment processing, Lasinja saves businesses time, reduces errors, and ensures compliance with local tax laws. With a focus on security and scalability, Lasinja is poised to support the growing needs of businesses across the Virgin Islands as they continue to embrace digital transformation.
