Compensation Query Management System Using Tax Return Data Extraction
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Solution Overview
Problem
Employees and employers lack reliable compensation-related information, leading to an uneven negotiating position during salary negotiations, with employees often relying on unreliable sources and employers having limited insights into competitor compensation packages.
Innovation Solution
A system and method for compensation query management that extracts and compiles data from tax returns, providing accurate and comprehensive compensation information while ensuring privacy, using processors and memory to implement an analysis tool that accesses tax returns, compiles data, and responds to queries, including salary, benefits, and geographical correlations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If corporations restrict access to compensation packages, then competitive advantage is maintained, but employees lack reliable compensation information for negotiations
Solution Approach 1:
The patent introduces tax return data as an intermediary source that indirectly provides compensation information. Instead of corporations directly sharing compensation data, the system uses tax return filings (which contain compensation information) as a mediator to provide reliable compensation data to employees and employers without requiring direct disclosure from corporations.
Solution Approach 2:
The system creates a copy of compensation information from tax return filings. By extracting and compiling compensation data from tax returns, the system produces a replicated version of compensation information that can be shared without the original corporations needing to directly disclose their compensation packages.
2Ease of operation
If employees rely on hearsay and surveys, then compensation queries can be answered, but information accuracy deteriorates
Solution Approach 1:
The patent replaces unreliable mechanical methods of gathering compensation data (surveys, hearsay) with an automated electronic extraction system. The system uses computer processors to automatically extract compensation information from tax return filings, replacing manual survey methods with automated data processing that provides higher accuracy.
Solution Approach 2:
The system changes the source parameter from subjective surveys and hearsay to objective tax return data. By extracting compensation information directly from tax return filings, the system transforms the data source from unreliable subjective reports to reliable objective financial records, significantly improving measurement precision.
3Measurement precision
If compensation data from tax returns is accessed, then accurate compensation information is obtained, but taxpayer privacy may be compromised
Solution Approach 1:
The system extracts only the necessary compensation information from tax return filings, separating useful data from personally identifiable information. By extracting specific compensation parameters while leaving other sensitive data in place, the system obtains accurate compensation information without compromising taxpayer privacy.
Solution Approach 2:
The patent applies different quality characteristics to different parts of the data. Compensation information is extracted and processed with high precision for analysis, while personally identifiable information is retained in its original form or anonymized, ensuring that privacy protection is applied locally to sensitive fields while maintaining data utility for compensation analysis.
Data Source
AI summary
A system for compensation query management includes one or more processors and memory coupled to the processors. The memory stores program instructions executable by the processors to implement an analysis tool. The analysis tool is configured to access representations of a plurality of tax returns and extract compensation-related data from the tax returns. The analysis tool is further configured to compile a version of the compensation-related data into a data store, and access the data store to prepare a response to a compensation query.