Employment Tax Advisory Services

Businesses of all sizes and industries that have employees in multiple states, are undergoing M&A activity, or have experienced payroll compliance issues can benefit significantly from Aprio’s services.

Yes, Aprio provides representation and assistance in federal and state employment tax controversies, including audit support and penalty abatement strategies. Our Employment Tax team can also assist with Employee Retention Credit (ERC) disputes and inquiries.

This service evaluates the tax implications of remote work across state lines, including payroll nexus determination, state registration requirements, and payroll tax withholding and reporting compliance. The goal of this analysis is to identify gaps in reporting, remediate prior period issues where appropriate, and facilitate proper go-forward compliance.

Our team can work directly with the taxing authorities and your internal and external payroll and tax teams to correct prior period reporting or remittance errors. This can often be complex, as correcting one form often leads to required corrections on related or adjacent returns. The approach needs to be holistic to maintain compliance with the appropriate taxing authorities, as well as reduce the impact on employees.

Proper tax treatment of fringe benefits can be extremely complex, facts- and circumstances-driven, and dependent upon proper benefit plan construction and maintenance. Aprio can assess your organization’s fringe benefits provided to employees, such as company vehicles, gift cards, business expense reimbursements, etc., to help you maintain compliance and overcome unnecessary risk.

Third party payroll providers are typically skilled at paying employees and handling regular reporting and remittances. However, most are not employment tax professionals and do not (and likely should not) provide advice beyond the mechanics of your business’s day-to-day payroll. Making taxability decisions, responding to audits, etc. are generally outside of their skill set and best handled by a specialized tax consultant.

If your business hires disadvantaged workers who face significant employment barriers (such as veterans or individuals with prior convictions), you may be eligible to claim anywhere from $1,200 to $9,600 per qualified employee.

Successorship for employment taxes is recognized by both the IRS and state taxing authorities in the event of certain types of M&A and internal reorganization transactions. When successorship applies, federal and state taxable wages bases (think FICA/FUTA and SUI) can be continued over from a prior entity, saving significant dollars and making transactions easier for employees. Successorship can also be applied retroactively, resulting in prior year refunds.

Making sure all workers are correctly classified (as either employees or independent contractors), keeping accurate payroll records, using a reliable payroll software, and staying up-to-date on any changes to tax laws are all steps you can take to make sure your business is compliant with employment and payroll tax regulations.