Employment Tax Refund Review
When an employer merges with or acquires another employer, the acquiring employer may be able to take credit for the wages that were already paid by the predecessor employer for social security, federal unemployment and state unemployment tax within the same calendar year. Under certain circumstances, the acquiring company may also be able to save costs by transferring the previous employer’s state unemployment experience rating.
Many qualifying companies, unaware of these provisions, restart employee wages during the post-acquisition payroll onboarding process and end up overpaying employment taxes.
Through a targeted Employment Tax Refund Review, BDO can help you identify tax refunds and future savings opportunities to increase cash flow and lower your total tax liability. Refunds from overpaid employment taxes are generally only available for three years from the transaction year, so employers must act quickly.
If you went through a merger or acquisition in the last three years that involved the transfer of employees, you may be entitled to an employment tax refund. Contact BDO to see if you qualify.
Read more about Employment Tax Refunds