ETS Tax Intelligence: Forecasting SUI Tax Rates

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

SUI tax rates

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

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

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

Webcast replay

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

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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…]

Upcoming Webcast: Out-of-State SUI Wage Credits

webcast

Date:  Tuesday, February 24, 2015 Time:  11:00 AM ET, 10:00 AM CT, 9:00 AM MT, 8:00 AM PT Click here to register With today’s mobile workforce, it has become increasingly common for employers to transfer or relocate employees from one taxing jurisdiction to another.  The number of employers allowing employees to telecommute has also increased [Read More…]

Tax Intelligence: Understanding SUI Tax Rate Notices

SUI tax rates

Situation As of the issuance of this Tax Intelligence, only five (5) states have yet to issue calendar year 2015 state unemployment insurance (“SUI”) tax rate notices: HI, MA, MS, NY, and PR. With 53 separate jurisdictions issuing SUI tax rate notices, understanding each can be complex. To complicate matters, as organic growth and merger [Read More…]

December Tax Intelligence: Internal Reorganizations

internal reorganizations

Situation The new year can bring about change in organizations necessary to achieve certain strategic initiatives.  These changes often involve the movement of employees between and among related employers (i.e., legal entities having unique FEINs) under the same organizational umbrella.  Organizational changes can take many forms and be referred to in many different ways, including:  [Read More…]

2014 FUTA Tax Rates – Credit Reductions and BCR

unemployment insurance

When a state’s unemployment insurance (“UI”) trust fund becomes insolvent, the state has an opportunity to borrow from the federal government in the form of “Title XII” loans to pay unemployment benefits to claimants.  These Title XII loans can increase federal unemployment (“FUTA”) tax rates for employers in the affected states. In general, the net FUTA [Read More…]