Success Stories: Northwest Airlines

Select a Success Story Bank One Northwest Airlines Full-Line Vehicle Manufacturer U.S. Treasury Department

Northwest Airlines Profile

• World's fourth largest air carrier
• Headquartered in Minneapolis/St. Paul
• 49,000 U.S. employees in 49 states
• $500 million paid in federal, state, and local payroll taxes annually

The Challenges

Dissimilar payroll groups. Payroll for each pay group—flight attendants, pilots, baggage personnel, and so forth—had to run individually, so consolidation of payroll taxes in their payroll solution was critical.

High frequency of payrolls. Due to the need to run a separate payroll for each pay group, three to four payrolls are run each week, creating a need to consolidate the diverse information for tax compliance purposes.

Manual intervention required. Four Northwest employees each created their own spreadsheets, posted the data, kept their own payroll tax calendars, and verified that deposits were correct, according to federal and state regulations. This created the potential for manual errors in their payroll solution.

The Solution

Northwest considered both outsourcing and internal product development, but price, updates and compliance became a deciding factor. Northwest chose the Compliance Services tax payroll solution due to the favorable pricing, compliance functionality, and timely updates that were unavailable with other choices.

The Results

Reduced resource requirement. Two employees, as opposed to the previous four, in the 83-person payroll department now can handle all of the airline's payroll tax depositing and reporting. In fact, a recent research study by Gunn Partners ranked Northwest third among 90 large employers in the lowest payroll solution costs (including payroll tax costs).

Consolidation of diverse payrolls. The Compliance Services Payroll Tax System consolidates all the airline's taxes for each individual payroll type processed.

Automatic imports & exports. The payroll solution automatically imports and exports payroll tax data via an interface with the airline's accounts payable system.

Timed saved. The Compliance Services solution provided Northwest with a cash forecasting tool that gives them monthly projections, and helps to reconcile quarterly data more easily. Instead of two to three days, the process now only takes a few hours.

Better cash management. Electronic payments are made timely on the due date, providing for the best use of cash resources.

What the Client Said

"We're up to date with the latest technology, and Compliance Services is a leading-edge company. It's certainly a cost-effective payroll solution. It's easy to use, accurate and efficient, and helps you manage your own cash. I give it a definite thumbs-up."

- Marcia Aamodt
Director of Payroll