Employment Tax Representation

Our employment tax consulting practice is headed by a recognized national leader who led KPMG’s employment tax practice for 13 years. Our services include:

  • Review and analysis of independent contractor classification
  • Post acquisition/merger refunds and credits
  • Tax planning for mergers, acquisitions & reorganizations
  • Taxability of special wage payments
  • Federal, state and local audit defense

Independent Contractor

The Internal Revenue Service, Department of Labor and numerous state and local agencies have been aggressively challenging the treatment of individuals as independent contractors for employment tax purposes

This has become a focus area for revenue growth by budget constricted state and local government and can result in the payment of substantial back taxes, interest, penalties and fines. Independent contractors eliminate state and federal employment taxes, workers compensation, overtime, and benefits. If misclassified as independent contractors, the employment tax exposure can be significant after factoring in interest and penalties. The issue is--who has the right to control the individual performing the services as to the manner, method or means of accomplishing the work?

We have a long successful track record of representing prominent companies in independent contractor disputes.

Post acquisition/merger refunds and credits

By performing a reverse audit of your existing and past unemployment accounts, we identify any potential refund opportunities. Prior reorganizations, acquisitions, divestitures are a good indication there are opportunities for tax recovery. We will review your SUI, FUTA, and FICA reporting and obtain any refunds due and make future saving recommendations

We will review:

  • Employee rate transfers in asset acquisitions and post acquisition transfers;
  • Review wage base continuations on SUI, FUTA, and FICA;
  • Audit predecessor unemployment tax history;
  • Review penalties and interest computations for accuracy and abatement;
  • Identify past unemployment rate assignments;
  • Determine reserve balance transfers that are outstanding;
  • File any outstanding unemployment tax paperwork on past acquisitions, mergers, or reorganizations;
  • Monitor state responses to corporate changes;
  • Confirm combined unemployment tax rate calculations;
  • Apply for refunds and or credits.

We’ll prepare a written summary of our findings and recommendations, submit refunds claims and provide post claim audit representation.

Contact us to learn more

Phone: (714) 434-6700
Fax: (714) 640-8645