By Tom Towson
Anytime an organization goes through an M&A event -- even internal restructuring where employer transfers workforce from one legal entity to another, the potential impact to state unemployment insurance (“SUI”) tax costs must be taken into consideration. SUI tax rates are the only rates controllable by the employer. When an M&A event is involved you have a unique opportunity to reduce costs through proper tax rate management. However, there are 53 separate taxing jurisdictions - 50 states plus Washington DC, Puerto Rico, and the Virgin Islands. Each of these 53 jurisdictions has their own set of SUI tax provisions, including compliance obligations that must be met. Navigating your internal tax rate management plan through this can be very time-consuming. In addition, these tricky tax laws can create a situation where employers unknowingly overpay employment-related taxes. Tax overpayments vary in type (e.g., FICA, FUTA, and SUI) and can be created without your knowledge, or due to circumstances beyond your control. Complying with these laws can be onerous, but can also produce significant opportunity. An opportunity that we've seen many companies fail to capture correctly. To help you navigate the employment tax landscape during an M&A, watch our webinar, Insider Tips to Protect Your Employment Tax Rates.
You’ll gain unique insight from the same experts who help our clients discover $130 million in potential tax savings in 2017 alone.* Get expert guidance that you can take straight to your bottom line!
*2017 Equifax client data