Unemployment Tax Look Back Review

Whether you use an unemployment vendor or manage unemployment in-house, now may be a good time to have an independent third party assessment of your unemployment tax accounts to identify potential tax overpayments. “In America, there are two tax systems; one for the informed and one for the uninformed. Both are legal.” – Judge Learned [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: Ohio Savings Opportunity

Situation Ohio is one of many states that offers employers the opportunity to utilize voluntary contribution (“VC”) and joint account (“JA”) strategies to reduce state unemployment insurance (“SUI”) tax costs.  VC strategies (available in 26 states) allow employers to “buy down” their SUI tax rate, while JA strategies (available in 12 states) allow employers to [Read More…]

Webcast Summary: Mitigating Overpayment of Employment Taxes

General Overview The following employment taxes are assessed against employers up to annual taxable wage base limits: FICA (social security): 6.20% on the first $118,500 (2016, $127,200 for 2017) of wages – up to $7,347 per employee (“EE”) FUTA (federal unemployment): 0.60% (exclusive of FUTA credit reductions) on the first $7,000 of wages – up [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…]

Webcast: Internal Workforce Movements – Unemployment Insurance Impacts

Date: Thursday, August 4, 2016 Time: 1:00 PM ET, 12:00 PM CT, 11:00 AM MT, 10:00 AM PT Fee: Free Duration: 1 hour Register now! An internal restructuring of employer’s workforce often occurs to streamline operations, reduce costs, and better align the organization with changing business needs. The movement of employees from one legal entity [Read More…]

McDonald’s Case Study – Unemployment Cost Management Success

Caspers Company – McDonald’s is a family run business on their 3rd generation with over 3,300 employees spread throughout 65 plus locations.  They pride themselves on being the most profitable of all McDonald’s franchises.  In an industry with high turnover, it was important for Caspers Company – McDonalds to make their unemployment processes more efficient and [Read More…]