When corporate restructuring activity (mergers, acquisitions, divestitures, spin-offs, etc.) occurs, there are so many critical tasks that must be completed that preparing for and analyzing the impact upon the unemployment tax rates is often overlooked or left at the very bottom of the to do list. Overlooking the financial impact that this type of activity has on unemployment taxes is a critical mistake because material savings (5, 6 and 7 figures) can be discovered and secured with professional management.
Each state has different rules regarding the treatment of these transactions (i.e. optional and mandatory transfers of experience, etc.), so the potential financial impact must be analyzed for each state and for all entities involved. To obtain transfers of unemployment experience and accrued reserve balances, elections must be applied for by state specific statutory deadlines. It's always optimal to manage these transactions with the state(s) as they occur. However, State and Federal regulations allow Employers Edge to provide a retrospective recovery audit (past 3 to 5 years depending upon the state) to capture credits and/or refunds of past overpayments due to mishandling as these transactions in open tax years.
Allowing the experts at Employers Edge to professionally manage any past, present or future restructuring activity ensures compliance with Federal and State regulations and will save your company substantial money, time and frustration.