Compliance is Complicated
Savage started out as a family business in 1946 with a single truck hauling coal and timber in Utah. Today, they are a leader in supply chain management solutions that are tailored to meet the needs of customers across a variety of industries including electric power generation, coal production, oil refining, railroad, chemical, and other industries. They have more than 200 operating locations in North America and internationally. Each year, Savage handles more than 100 million tons of customers’ materials.
Currently, Savage is a significant growing company with more than 3,000 employees and responsibility for a retiree population. They offer several different medical plans and had to process over 4,200 forms so far in this first year of mandatory ACA reporting. Initially, they approached their internal programmers about building a solution since they already process all their 1099 forms in-house. However, the build was going to be too expensive and time-consuming.
“What we liked about Sovos is that you were service-oriented, we got timely responses,
and your product’s ease of use. More importantly, after asking our programmer about building
a solution internally, we discovered that the Sovos ACA solution is a bargain comparatively.”
– Sharon Broadwater, VP of People Support (HR)
Savage then turned to Sovos, who said it would not be a problem to take them on and help them comply on-time. They had already started cleaning their data in preparation, but they felt a high sense of comfort working with Sovos because even though Savage had built codes internally, had it vetted by attorneys, and were familiar with everything involved, Sovos was able to step-in and help with every part to achieve compliance. Savage had spreadsheets for all their employees and were coding by hand. They also had to gather data from multiple source systems across departments such as payroll, benefits systems, and third parties administrators. They also realized they had to gather information about retirees now. Once they had all their data, Savage said loading the data into the Sovos ACA solution was not a problem and neither was populating the schemas. Once the data was loaded, it was easy to edit individual records. Savage was also pleased that any time they had a question or needed help, customer service was responsive and tracked down an answer.
- Operational efficiency: Savage didn’t have to program a solution internally and tie up useful resources for other business initiatives.
- Affordable cost: Compared to other alternatives Sovos ACA was an affordable and cost-effective solution.
- Ease of use: The solution was intuitive to use and found the support resources to be service-orientated.
Savage did stick to the original reporting deadlines and was able to file on-time, even though the IRS extended the deadlines. They are very happy working with Sovos and have freely recommended them to other companies and even to their broker to use as a referral. Even though they already signed a contract extending into the next tax year, they would have renewed with Sovos based on their experience this year.