Tax Intelligence Bulletin: Mid-year M&A Transactions
During the second and third quarters of 2013, there were 4,672 merger, acquisition, reorganization, and divestiture (M&A) transactions totaling $551.2 million in deal value, with projections indicating even higher activity in the second and third quarters of 2014. Handling the impact of an M&A transaction can be a complex and time-consuming process for employers, especially with the unique federal tax (FUTA and FICA) and state unemployment insurance (SUI) tax challenges associated with mid-year M&A transactions.
During a recent Equifax Workforce Solutions’ webcast, 43% of attendees noted that they have less than two months’ notice prior to an M&A transaction date and 30% of attendees responded that they generally learn about an M&A transaction after the transaction is complete. In such instances, a top priority of the Payroll and HR departments is working to ensure employees transferred as a result of the transaction are paid properly and timely.
As a result, M&A transactions are responded to reactively instead of proactively. For more information about the specific issues associated with mid-year M&A transactions, including savings opportunities such as wage base carryover and transfers of state unemployment experience, please see our July Tax Intelligence Bulletin, Mid-year M&A Transactions.
Recommended For You
Is Your Business Taking Unnecessary SUI Compliance Risks During an M&A? Situation When an employer engages in activities that result […]
What M&A Unemployment Tax Savings are you Prepared to Capture? Situation State unemployment taxes rarely drive decisions relating to the […]
Are you overpaying employment taxes during an M&A or reorg? Whether this is your first merger or acquisition (M&A) or […]
The 36th Annual APA Congress The 36th annual APA Congress in National Harbor, MD is this week. Thousands will bring […]