Prevention of Overpaid Employment taxes, Susan Dermody, Equifax
The intricacies of the tax laws can create situations where employers overpay employment-related taxes. These overpayments vary in type [e.g., social security ("FICA"), federal unemployment ("FUTA"), and state unemployment insurance ("SUI")] and can be created without your knowledge or due to circumstances beyond your control.
Employers that engage in M&A activities (mergers, acquisitions, reorganizations, divestitures, and internal employee realignments) or that have employees regularly crossing state borders to perform their job functions are particularly susceptible to employment-related tax overpayments. FICA and FUTA overpayments can be significant; however, SUI tax overpayments come in many forms and can often be avoided by taking advantage of unique SUI tax laws.
This presentation is particularly valuable to payroll, human resource, tax, employment tax, and unemployment tax professionals concerned with tax costs and will provide information on methods to secure refunds of overpaid employment taxes, including:
• Rate Revisions (SUI)
• Wage Base Restarts (FICA, FUTA, and/or SUI)
• Use of Out-of-State Wage Credits (SUI)
• Multi-State Reporting or "Sourcing" of Wages (SUI)
• Time Limits on Seeking Refunds (FICA, FUTA, and SUI)