Neeyamo Navigates Global Tax Compliance Requirements with Generative AI on AWS

Global payroll and employer of record (EOR) provider Neeyamo empowers businesses to focus on growth by simplifying complex payroll and human resources (HR) processes. The company offers a comprehensive solution portfolio that includes global payroll, EOR, and a range of ancillary HR products such as Time, Absence, and eHub, supporting operations in over 180 countries.

Born in the cloud, Neeyamo runs the technology stack for its payroll and HR solutions on Amazon Web Service (AWS). Neeyamo relies on Amazon Elastic Compute Cloud (Amazon EC2) instances for its application servers, Amazon Simple Storage Service (Amazon S3) for secure data storage, Amazon Relational Database Service (Amazon RDS) for databases, and AWS Lambda for serverless capabilities. Ashok Bildikar, chairman at Neeyamo, says, “AWS has been instrumental in driving our rapid growth and scalability and ensuring low latency and high availability for our customers. AWS has a vast array of services that has helped our product teams focus on creating innovative solutions instead of investing time and effort in managing infrastructure.”

Several years ago, Neeyamo set out to help its global customers address evolving tax regulations across multiple jurisdictions. “Compliance is constantly evolving at the state and country levels, requiring our customers to manage thousands of changes each year,” Bildikar explains. “If companies don’t comply with tax changes, they could be required to pay millions of dollars in penalties.” Many Neeyamo customers were still using time-consuming, manual processes for tracking websites and validating content for tax rule changes. According to Bildikar, Neeyamo saw the need for an automated solution to monitor and validate tax changes to ensure compliance.

Neeyamo collaborated with ShellKode, an AWS Partner specializing in cloud, data, and generative artificial intelligence (generative AI) solutions. ShellKode created a custom solution to compute tax comparison for various countries and automatically detect and update tax regulation changes for compliance.

The solution scans tax regulation websites using Amazon Kendra, an intelligent enterprise search service, and extracts data with Amazon Bedrock, a generative AI on AWS service. This extracted data is then used to create a foundation model for automating updates to tax information. “Amazon Bedrock's ease of use, serverless architecture, and support for large context windows in the latest models were crucial in implementing complex multi-step workflows and processing large data volumes,” says Bakrudeen K, AI/ML practice head at ShellKode. Tax data is centrally stored in Amazon S3 buckets, supporting easy access, backup, and retrieval across multiple locations and teams.

Neeyamo also uses AWS Enterprise On-Ramp Support for continuous technical support, tools, and technology to manage the health of the solution. “The responsiveness and involvement of AWS Enterprise On-Ramp Support has been exceptional,” Bildikar says. “Our team provided feedback on changes to the solution, and we worked with AWS to implement those adjustments.”

By automating the process of scraping tax websites, validating content, and detecting changes in tax rules, Neeyamo can inform its customers about upcoming payroll tax regulation changes in real time. “For example, if there’s a tax rate change from 8 to 10 percent in one country, the solution updates and notifies customers so they can maintain compliance across the globe,” explains Bildikar.  

Bildikar says, “The solution ShellKode developed on AWS helps our customers proactively comply with constantly changing payroll tax regulations across different jurisdictions. This reduces the risk of costly penalties, which can reach millions of dollars for global corporations.” Utilizing Amazon Bedrock models, Neeyamo also ensures accurate and consistent interpretation of tax regulations, minimizing manual errors and saving companies hundreds of hours of effort each year.

In addition, the tax regulation automation solution positions Neeyamo as a technology leader and innovator in the payroll and EOR solutions industry. “This solution provides a competitive edge by eliminating outdated, manual processes and supports our global business growth,” Bildikar says. “In addition, AWS offers unmatched scalability. As our company grows, this solution will rapidly grow to meet increasing demand without sacrificing performance or reliability.”

Neeyamo has also benefited from its close collaboration with AWS Enterprise On-Ramp Support, which conducted a cost optimization workshop to help reduce costs for the solution. “AWS Enterprise On-Ramp Support reduced our costs by 8 percent by identifying idle resources, reconfiguring servers, and subscribing to a savings plan,” says Bildikar. He continues, “AWS has been central to our success. This long-standing partnership has helped us innovate quickly and scale our business globally.”