Ultimate M&A: 55 Best Practices to Protect Your Taxes
Are you overpaying employment taxes during an M&A or reorg?
Whether this is your first merger or acquisition (M&A) or one of many, the long list of required tax items can be overwhelming. You have to keep track of everything from account registrations and closures, to preventing penalties by analyzing SUTA dumping provisions. And they all have critical deadlines and documents to organize. Not to mention, employment tax overpayments during an M&A can cost a business hundreds of thousands of dollars.
If you work in a payroll or finance department, this guide is a must to stay above the chaos. In fact, one of the areas to cross your t’s and dot your i’s is under FICA, FUTA, and SUI wage base carryovers. This often overlooked aspect of an M&A is essential to optimize during employee movement. Depending on the specific set of facts and circumstances, employers involved in a mid-year transfer of workforce between legal entities are often allowed to carryover annual taxable wage bases for SUI tax purposes. This can apply to both internal workforce restructuring or an outside acquisition. However, if the wage base is restarted, the business may be duplicating SUI tax, resulting in the employer having a significant SUI overpayment.
To protect you against this double taxation due to wage base carryovers and other risks, we’ve laid out 55 important steps to follow using insight from our employment tax consultants. They used these same best practices to help our clients find over $130 million last year* in potential tax savings!
Download today to unlock insights on…
- Due diligence information requests
- Implementation and compliance information requests
- Sale and purchase agreement provisions
- Planning considerations
- Post-transaction compliance considerations
- Plus, room for notes, progress status and a due date calendar.
This free Ultimate M&A Employment Tax Checklist can help set up your next M&A for success. Finally, you can be confident you’re on track.