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Minimizing Unemployment Tax Problems

  1. Report wages and pay all taxes on time - deadlines can be extended for good cause shown (Rules 815.107(b)(3) and 815.109(f)) - set up a payment plan if necessary - timely payment of taxes enables the wages to be used to compute the tax rate, which serves to keep the tax rate lower.

  2. Section 204.083 - that law provides for mandatory transfer of compensation experience in case of shared ownership or management between the predecessor and successor - always take this potential cost into account when negotiating the sale or purchase of another business.

  3. Sections 204.084, 204.085, and 204.0851 - a partial transfer of compensation experience is possible (one-year deadline - Rule 815.111).

  4. Section 204.086 - a successor entity is liable for the unemployment tax debt of its predecessor - this is another potential cost to take into account when negotiating the sale or purchase of another business.

  5. Section 205.002 - the election to be a reimbursing employer must be timely and is effective for two years.

 

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