PSA Wizard

Launch of Machine Learning

By introducing Machine Learning into its data classification process, the Deloitte PSA Wizard’s journey to automate complex decisions has taken a step further. The new development will further support you to enhance your PSA delivery model, by helping to efficiently identify which data may be taxable and non-taxable.

Deloitte PSA Wizard is a market leading technology solution which automates the data classification process, driving the review of significant volumes of data which would be time consuming and, in some cases, impossible using a line by line or traditional excel based classification process. By using a supervised Machine Learning method, the PSA Wizard studies tax categorised data (‘training data’) and learns tax rules and patterns which have influenced the classification.Producing a compliant PSA computation often requires a choice. Either:

Taking a detailed approach to the review

The review can be performed by categorising large volumes of employee expense and benefit data to identify taxable amounts using line by line manual analysis.

Taking a higher level approach, but potentially overstating taxable amounts 

The alternative is to take some broad reasonable positions on data which has already been categorised. This can lead to overpaying because taxable expenditure can be overstated, or all available reliefs and exemptions are not claimed. Either route can use up valuable time and money or create a compliance risk for your business.