Employment Tax Webcast: TaxManager – A Comprehensive Tutorial

The 2016 state unemployment tax rate season is in full swing and now is the time to review your unemployment tax rate management program.  Register for our upcoming webcast, TaxManager: A Comprehensive Tutorial to learn how to use the tool to assist in managing your organization’s tax rates.  You’ll have the opportunity to earn free RCH credits [Read More…]

ETS Tax Intelligence: Joint Account Formation

Situation With the recent increase in M&A activity, along with organic expansion, many employers have experienced significant changes in their organizational and legal entity structures.  Such changes may make it worthwhile to evaluate your structure for state unemployment taxes to determine whether by obtaining a common rating (a/k/a joint account formation) among multiple legal entities [Read More…]

Webcast Summary: Indiana Account Consolidations

Account Consolidation Overview Account consolidations typically will permanently combine the unemployment experience of some or all of the state unemployment insurance (SUI) tax accounts of affiliated or related employers in the determination of a single tax rate. Although nine states currently have account consolidation provisions, Indiana, which codified its account consolidation provision in May of [Read More…]

ETS Tax Intelligence: 2015 FUTA Tax Rate Outlook

Situation The “Great Recession” continues to impact FUTA tax rates in 2015 as evidenced by the five states that continue to borrow from the federal government in the form of “Title XII” loans.  The federal government offers states the ability to borrow when their unemployment trust funds are depleted and they are unable to pay [Read More…]

ETS Tax Intelligence: Forecasting SUI Tax Rates

Situation For most employers, state unemployment insurance (“SUI”) tax rates are generally cyclical.  As demonstrated by the graph, national average SUI tax rates  trend downward during a period of economic growth and trend upward following a period of economic downturn (as was the case with the “Great Recession”).   However, trends are not always exact and [Read More…]

ETS Tax Intelligence: SUI Account Consolidations

Situation All states have unemployment insurance (“SUI”) anti-abuse provisions mandated by the passage of the SUTA Dumping Prevention Act of 2004.  In addition, many states have enacted even more stringent provisions aimed at further preventing manipulation of the joint federal-state unemployment insurance program.  One of these provisions is often referred to generically as an “account [Read More…]

ETS Tax Intelligence: Sourcing of SUI Wages

Situation When an employee performs services in one state, proper reporting or “sourcing” of wages for state unemployment insurance (“SUI”) purposes is fairly simple; report the wages and remit taxes to that specific state.  However, when an employee performs services in multiple states, employers are challenged with determining which state is the proper sourcing state. [Read More…]

ETS Tax Intelligence: Worker Misclassification

Background The courts and other governmental authorities [including the Internal Revenue Service (“IRS”), the U.S. Department of Labor (“DOL”), and state workforce agencies (“SWAs”)] have addressed the issue of worker misclassification for decades.  These government authorities believe that when a worker is considered an employee, and not an independent contractor (“IC”), workforce compliance and the [Read More…]

Webcast Summary: Out-Of-State Wage Credits

Overview Prior to beginning a discussion on out-of-state wage credits, it is necessary to understand the concept of state unemployment insurance (“SUI”) sourcing.  Employers and state workforce agencies are required to use what is known as the “four-factor test” to determine the state to which an employee’s wages are to be reported when employees work [Read More…]

Tax Intelligence: Out-of-State Wage Credits

Situation When an employee is permanently transferred or relocated from one state to another within the same legal entity, the state to which wages are reported for state unemployment insurance (“SUI”) tax purposes typically changes.  To avoid a duplication of SUI tax on wages paid to a single employee, most states (other than Louisiana, Minnesota, [Read More…]