Senate Finance Committee Passes Tax Extender Package

Legislative Update

Beginning on July 21, the Senate Finance committee began their process of a “markup” of a tax extenders bill.  Recall that WOTC – a key element of the tax extenders, has been in hiatus since January 1, 2015.  The text of the markup proposal can be found here.  A markup is an important step in [Read More…]

WOTC Update: Tax Reform and Tax Extenders

WOTC update

Tax reform is sometimes mentioned as a potential cause of delay for the renewal of WOTC and other tax credits.  That is, if tax reform were to happen, then it is conceivable that, as part of that process, various tax credits would cease to be renewed in favor of a reduction and simplification of overall [Read More…]

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…]

Fraud Prevention: Crimes against Revenue on the Rise

WOTC Bill Renewal - law

Fraud perpetrated by or on behalf of local public assistance recipients continues to be a recurring sore spot in the ability of local jurisdictions to control growing costs, and improve revenue collections and use. “Crimes against revenue” is a particular phrase used over past years by localities seeking to address this kind of public sector [Read More…]

Illinois Budget Deficit Spurs Incentive Cuts

Illinois Budget Deficit

With a proposed budget deficit of nearly $4 billion for the 2016 fiscal year, the Illinois Governor’s Office has issued a press release which places a hold on certain future incentives for businesses. Effective immediately, the state is suspending all new applications for the Economic Development for a Growing Economy (EDGE) Tax Credit Program, Large [Read More…]

Tennessee Community Resurgence Job Tax Credit

LBI

To help encourage job growth in impoverished areas of the state, Tennessee has recently passed legislation which enacts the Community Resurgence Job Tax Credit. Effective July 1, 2015, this credit provides $2,500 for each new full-time job created in a high-poverty area. The credit is available to businesses of any industry type which create at [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…]

UI Integrity: Let’s Get Ed-UC-ated

UI Integrity

Unemployment Insurance (UI) Integrity has been a trending topic in Unemployment Cost Management for the past couple of years.  The waters are proving to be somewhat murky and the flow of guidance from state to state can be inconsistent. History In 2009, with unemployment rates nearly double historical norms, UI benefit payments increased significantly and [Read More…]

A Deep Dive into ACA IRS Reporting with Intuit and Equifax

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A Deep Dive into ACA IRS Reporting with Intuit and Equifax Form 1095 for the Affordable Care Act is often called the “W-2 of benefits”. However, the stakes are much higher when it comes to reporting under ACA because this information will determine the penalties that you and your employees could face for failing to [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…]