ETS Tax intelligence: Mitigation of Overpaid SUI Tax

Situation There are numerous ways that employers are at risk for overpaying state unemployment insurance (“SUI”) tax. This is especially true with employers that operate in multiple taxing jurisdictions and/or have employees performing services in more than one state or jurisdiction during a calendar year. Solution To avoid or mitigate overpaid unemployment taxes, an employer [Read More…]

State Unemployment Tax Savings Opportunities in New York

New York offers employers the opportunity to reduce 2017 state unemployment insurance (“SUI”) tax costs.  This may be accomplished through: Forming a Joint Account.  A NY joint account combines two or more of your SUI tax accounts to achieve a lower overall tax cost for 2017. Making a Voluntary Tax Contribution.  A NY voluntary contribution [Read More…]

ETS Tax Intelligence: Multi-State Unemployment Tax Issues

Situation The beginning of a new calendar year is the perfect time for employers to review current payroll reporting practices to identify and rectify any inappropriate pay practices and review the prior year’s filings for potential refund opportunities.  This review should include an analysis of state unemployment insurance (“SUI”) sourcing rules and utilization of out-of-state [Read More…]

ETS Tax Intelligence: 2017 SUI Annual Taxable Wage Bases

Situation In general, there are two main factors that determine an employer’s annual state unemployment insurance (“SUI”) tax costs: 1) the employer-specific tax rate assigned, and 2) the taxable wage base.  The annual taxable wage base is a limit on the amount of an employee’s wages on which an employer must pay SUI taxes, as [Read More…]

ETS Tax Intelligence: SUI Transfer of Experience Provisions

Situation Mergers and acquisitions (“M&A”), whether an internal reorganization of legal entities under the same organizational umbrella or an external unrelated party, can significantly influence an employer’s state unemployment insurance (“SUI”) tax rates.  Past issues of ETS Tax Intelligence addressed the importance of properly reporting M&A transactions and the potential for employment tax overpayments.  This [Read More…]

ETS Tax Intelligence: SUI Tax Rates in 2018 and Beyond

Situation State unemployment insurance (“SUI”) tax rate risk can be broken down into two primary components, those that employers can control and those that employers cannot.  For those factors that employers can control (i.e., unemployment claims and tax rate management programs), they should make every effort to do so.  For those uncontrollable factors, employers should [Read More…]

ETS Tax Intelligence: Bankruptcy “Free and Clear” Provisions

Situation For state unemployment insurance (“SUI”) tax purposes, employers engaged in merger and acquisition (“M&A”) transactions must adhere to the SUI tax provisions in each taxing jurisdiction (50 states, DC, PR, and VI), based on each unique set of facts and circumstances. An M&A transaction can broadly be defined as a transaction involving the transfer [Read More…]

Webcast Summary: Internal Workforce Movements: UI Impacts

Unemployment Cost Management Overview The unemployment program was created to provide benefits to employees that have lost their jobs through no fault of their own.  These benefits are funded by state unemployment insurance (“SUI”) taxes paid by employers, whose rates are assigned based on their unemployment experience. After the Great Recession, legislation was introduced which [Read More…]

ETS Tax Intelligence: SUI Tax Rate Forecasting

Situation By June 30th, most of the employer-specific information used by state workforce agencies in determining state unemployment insurance (“SUI”) tax rates has been established.  This is known as the “computation date,” the date employer tax rates are computed for the forthcoming rate year.  Despite having information necessary to compute SUI tax rates, states will [Read More…]

ETS Tax Intelligence: Spring Cleaning for SUI Tax Rates

Overview Unemployment insurance was created to provide temporary income to workers who lose their jobs through no fault of their own.  These benefits are paid from trusts funded largely by employers via state unemployment insurance (“SUI”).  The amount of SUI taxes paid by an employer depends on a variety of factors including economic conditions, an [Read More…]