Post M&A: 5 Tips to Help Recover Tax Overpayments

Did You Overpay on SUI, FICA or FUTA Tax Rates During an M&A?

If your company has experienced an M&A, reorganization -- or even a new payroll system in the past 3 years -- you may have overpaid on employment tax. Scary thought, right?  The good news is there still may be time to recover those tax overpayments. But how does this even happen in the first place?

Usually, we find companies with significant employee movement (both internal and external) incorrectly restart their annual taxable wage bases. Unfortunately, this often happens when employees are treated as "new hires" under SUI, FICA and FUTA filings. What can you do to help recover duplicated taxes after an M&A -- and where do you even start?

Follow These 5 Steps:

  1. Confirm filing of proper SUI compliance documents. Without this first step, you can't go after retroactive refunds.
  2. Collect all employee level details: impacted states, number of employees, etc.
  3. Calculate the amount of duplicated tax payments. Determine if it's significant enough to pursue. Most of the time it is. In fact, we helped one employer recover $2.4 million in employment taxes.
  4. Amend employment tax filings: Forms 941, 940 and state quarterly contribution reports
  5. Verify your SUI tax rates after an M&A. There could be additional refunds if your rates have been calculated incorrectly.

Want experts to go beyond the surface of your unique employee movement activities, helping to uncover amounts that are possibly owed to you? We can show you how to recover money lost from double taxation with our no-obligation Lookback Tax Review.

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