STATE UNEMPLOYMENT TAX PLANNING – COMPLEX BUT REWARDING
State Unemployment Taxes are widely considered the most volatile, application intensive and
legally complex, in all of Corporate Taxation. It’s an employer tax that is due every quarter at a
tax rate recalculated annually (and more frequently if a restructure occurs). It impacts multiple
departments; Corporate Tax, Payroll Department, Finance and Human Resources.
The state administers the annual tax rate calculations through the Department of Labor/Revenue. These tax rate calculations are complex with many variables. The states often send out incorrect tax rate calculations based on incorrect data. The fifty states have 50 different tax rate calculations for an employer to master. Payroll and Tax Departments, who are responsible for this area are generally overwhelmed. In addition, they are often issued extreme penalties for benign detail-oriented errors.
An unemployment tax cost increase could disrupt the best thought out budget planning. However, the unemployment tax cost is still overlooked in most companies. ValeU consultants are experts in the state laws and tax rate calculations of all fifty states. We understand that if unemployment taxes are skillfully and proactively managed they can save substantial tax dollars annually.
FULL SERVICE TAX CONSULTING & PLANNING
ValeU Group a private company, is a full-service Unemployment Tax Management consulting firm.
Our services are not administered like a “vendor” or “service company” but as a trusted “business
partner”. Our Fee Structure is flexible and can be a flat annual retainer, project basis, or contingent on secured savings. Clients look to us for proactive consulting and benefit from our experience and expertise in the following areas:
*Tax Rate & Tax Filing Audit:
Review every state’s unemployment tax rate calculation annually to make sure all taxes,
benefit charges, taxable payroll and employment history are accurately reflected on the notice.
Appeal all inaccuracies, assessments or penalty assignments. Review each state’s quarterly
tax return for accuracy of payment. Request and secure tax refunds/credits.
*Mergers, Acquisitions, Corporate Reorganizations:
Analyze the nationwide and individual state tax cost exposure. Adhering to state tax laws
and by utilizing employer tax history, create and implement strategies for potential tax savings
or reduced tax cost options.
- Timing/Effective Date
- Stock vs Asset Acquisition
- Total vs Partial Transfers
- Mandatory vs Optional Transfers
- Successor vs Predecessor Tax Rate History
*Tax Strategies 101:
Certain states allow “tax techniques” to lower a company’s annual tax rate.
Voluntary Contributions and Joint Accounts will be analyzed in all applicable states. Provide the
tax savings analysis and complete all applications prior to state deadlines.
- Provide detailed analysis of savings opportunities
- Complete and file all required applications where applicable
- Follow up with all state agencies to completion of project or to achieve desired tax rate