ey's employment tax advisory services

Employment Tax Advisory Services Resources you need when you need them

US payroll taxes Employer obligations

Registerwith tax agency

May apply to all taxing authorities where the employer has a business operation, and generally,in each employee work location

Covered employer as defined by eachapplicable taxing jurisdiction

Pay withheld tax

File returns

Collectemployee

documents

Pay employer taxes

Respondto agency

noticesParticipatein agency

audits

Workforce Services |Working together with you in meeting your Affordable Care Act, employment tax and tax credits requirements

Employer obligations How can we help?

Where is assistance needed? Determine covered employer status Assist with tax agency registrations Assist with business status change reporting Identify tax documents required of employees

and when Provide withholding tax deposit frequencies Identify returns required and their due date Identify employee information statements

required and their due dates Prepare returns and information statements Identify the rates and limits that apply to federal

FICA taxes and federal/state unemployment insurance

Confirm that state unemployment insurancerates are accurately determined

Identify options that may reduce state unemployment insurance rates

Respond to agency notices concerning unemployment insurance claims

Respond to all other tax agency notices Protest agency assessments Assist in tax agency audits Due diligence pursuant to mergers/acquisitions Look-back review subsequent to transactions


Employees covered wages as defined by each of these taxing jurisdictions

US payroll taxes Employee withholding tax variables

Unemployment,other socialInsurance

Incometax

Incometax

Head taxand otherUnemployment

insurance

Social Security,Medicare(FICA) Income

tax

State

Federal Local

Applies generally to all US employeesApplies generally anywhere the employee worksApplies generally to the primary work state


Employee withholding taxes How can we help?

Where is assistance needed? Identify the state and local withholding taxes

that apply to the employee based on resident and work location

For each applicable tax, define covered employment

For each applicable tax, define covered wages

What are the income tax withholding ratesand methods of withholding allowed (e.g., supplemental withholding rate)

Confirm exemptions to the nonresident income tax withholding requirements, if any, for short-term job assignments

For employees working in more than onelocation, compute the allocation of taxable wages

Calculate the employee withholding taxes owed

Workforce Services | Working together with you for Affordable Care Act and employment tax compliance and tax credits

Employment Tax Advisory Services

Employment Tax Advisory Services Resources you need when you need them

Unemployment insurance Conduct a tax rate review and evaluate statutory elections Assist in providing complete and timely response to state

separation notices Review unemployment insurance benefit statements and

protest incorrect changes Provide customized benchmark reports

Process improvement Analyze system tax and reporting

configurations using ourTaxAbility tool

Rapid assessment tool for measuring performance and compliance, and identifying areas of focus

Co-develop plan for future improvements Provide experienced resources for

payroll tax system design, implementation and testing

Complement internal audit efforts focused on employment tax operations and risk

Audit defense Conduct an audit exposure risk assessment Assist with voluntary disclosure and settlement agreements

including agency relations and adjust return preparation Provide representation in audit examinations, appeals and

hearings Respond to agency information requests

Complex advisory Form 1099 state and local reporting and

withholding requirements by pay type Bankruptcy withholding and tax filing

requirements Federal, state and local employment tax research One-off employment tax questions and tax

opinions EY Payroll Newsflash service

Short-term business traveler (STBT) Voluntary disclosure facilitation Shadow payroll services for US foreign

businesses with employees working in the US

Compliance, including employment tax return filing and tax payment services

Identify nonresident withholding exposure, assist with implementation of policy and procedures to track the tax locations of US business travelers, perform wage and tax allocations and income tax withholding calculations

Complex advisory

Short-term business traveler

(domestic, foreign)

Information reporting

Processreview Audit

defense

Unemployment insurance

Transactions Assist in pre-merger due diligence

and tax planning Perform post-merger risk and look-

back refund opportunity review Prepare registrations and business

account closures Transactions

Evaluate unemployment insurance rate assignments under the latest state rules

Bankruptcy compliance services

Click on the puzzle shapes for more

details

Information reporting State filing and

requirements for the full1099 series


Short-Term Business Traveler Services (STBT) Domestic overview

Holistic approach to determine potential exposure,

policy and procedures, and assist compliance

procedures to track the work locations and duration

of time spent in nonresident work locations to

compute the nonresident income tax withholding

owed using the latest state and local rules

concerning the allocation of wages and de minimis

exclusions

Facilitate the collection of documentation required to

support wage allocations and income tax withholding

calculations

Collaborate on the design and implementation of

short-term business traveler policies taking into

account business culture and benchmark data

Perform a risk assessment in the current compliance

environment and assist in developing and acting

upon a remediation plan

Conduct annual end-to-end compliance review and

assist with annual returns and information

statements

Download the STBT brochure here.

Financial services

(insurance) employer

Compliance assistance for

Bermuda residents on short-term

assignment in the US

Compliance program expanded to other countries

and across US state boundaries

How we made a differenceFor illustration purposes only. Actual tax benefits will vary depending on the taxpayers specific facts and circumstances.

Return to the home page here.

Foreign overview

Compile requirements for federal, state and local

withholding, employment tax payment and filing

requirements for US foreign employees working in the

US or the Outer Continental Shelf (federal only)

Provide federal, state and local taxability requirements

for each element of compensation and perform tax

calculations necessary for withholding and employment

tax purposes (e.g., income tax, Social Security,

Medicare and unemployment insurance)

Assist with federal, state and local income tax

withholding and unemployment tax registrations and

other business notification requirements

Prepare all periodic, monthly and quarterly employment

tax returns and facilitate electronic tax payment and

filing requirements (e.g., Form 941 and state

equivalents)

Reconcile wage payments and tax deposits across

jurisdictions and prepare annual returns and

information statements including Forms 940, W-2 and

1042-S

Download the foreign services brochure here.

http://rsvp.ey.com/CSG3/2016/1602/1602-1830415/Nonresident%20withholding%20services.pdfhttp://rsvp.ey.com/CSG3/2016/1602/1602-1830415/Inbound%20services.pdf


Transaction and Look-Back Review Services Overview

Prior to a merger or acquisition, assist the due diligence team in the evaluation of risk and exposure in connection with payroll tax obligations such as withholding, payment of employment taxes and the filing of federal, state and local returns

Subsequent to a merger or acquisition, analyze employment taxes such as Social Security, Medicare and unemployment insurance to identify risks or refund opportunities. Assist with registrations and/or business account closures

Evaluate unemployment insurance tax rates to determine if they were computed correctly by the states and identify opportunities to potentially lower contributions through statutory elections such as voluntary contributions, joint accounts and other similar provisions

Review payroll tax records for any other risks and opportunities such as business expense policies, taxation and reporting of fringe benefits and other areas of key concern subsequent to a merger or acquisition. Assist in developing and acting upon a remediation plan

Download the brochure here.

Energy sector employer

Employment tax refund

study

Tax refund to employer of

$8 million and $30 million to

employees



http://rsvp.ey.com/CSG3/2016/1602/1602-1830415/Lookback%20review.pdf


Audit Defense Services

Overview

Perform an employment tax audit risk assessment for federal, state and local taxing authorities including wage and tax reporting, worker classification, proper sourcing of trailing compensation and other areas of focus by taxing authorities

Assist with voluntary disclosure and settlement agreements, including agency relations and adjustment return preparation

Provide representation in audit examinations, appeals and hearings

Support pre- and post-audit employee communications and provide individual tax consultation and return preparation assistance

Coordinate employment tax audits and assist in responding to information requests and preparation of electronic data processing files


Health care industry employer

Respond to Wilmington, DE, local payroll tax

audit

Reduced audit assessment from

$1.2 million to $100,000



:Learn about New York audits here.

http://rsvp.ey.com/CSG3/2016/1602/1602-1830415/Risk%20and%20advisory%20services.pdfhttp://www.ey.com/Publication/vwLUAssets/EY-new-york-payroll-audit-defense-services/$FILE/EY-new-york-payroll-audit-defense-services.pdf


Information reporting

Overview

State backup and withholding requirements for nonemployee compensation

Withholding allowance certificate requirements for qualified retirement plan distributions (e.g., Form W-4P state equivalents)

State reporting and filing requirements for the full Form 1099 series

Preparation and filing of the full Form 1099 series

Risk and controversy services for the full Form 1099 series

Brochure is coming soon.

Retail employer

State Form 1099 filing

Feed in excess of $300,000




Complex Advisory Services Overview

Assist businesses in ascertaining their federal state 1099 withholding and reporting requirements

Help businesses in bankruptcy determine their applicable unique withholding and employment tax requirements

Conduct federal, state and local research pursuant to payroll tax and reporting requirements

Prepare and file original and amended tax returns (W-2, 1099, 941, 940, etc.) and other returns and information statements

Respond to one-off payroll and employment tax questions and provide tax opinions

Deliver timely notices of key employment tax developments through our EY Payroll NewsFlash service and insights in our monthly newsletter, Payroll Perspectives


Financial services industry employer

Research 1099 withholding and

reporting requirements for multiple payment

streams

Improved compliance and

customer satisfaction



http://rsvp.ey.com/CSG3/2016/1602/1602-1830415/Inbound%20services.pdf


Employment Tax Process Improvement Services

Overview

Facilitate the assessment of an organizations employment tax performance via our secure web-based portal or via a live meeting to identify areas of risk and improvement and co-develop a plan for future operations

Provide experienced resources to assist with employment tax system design and specifications, data migration, software installations and testing

Provide experienced resources for special projects, year-end deadlines, training or to respond to complex one-off questions

Compliment internal audit efforts focused on employment tax operations and risk analysis

Analyze payroll system tax configurations for gaps in tax and reporting setups for federal, state and local taxing jurisdictions via our TaxAbility diagnostic tool


Chemical and agricultural manufacturing

employer

Incorrect taxation and reporting of fringe benefits

Business cost reduction of $5 million



Learn about TaxAbility here.

http://rsvp.ey.com/CSG3/2016/1602/1602-1830415/Employment%20tax%20process%20improvement%20services%20FINAL.%209-18-2014pdf.pdfhttp://www.ey.com/Publication/vwLUAssets/ey-taxability-slipsheet/$FILE/ey-taxability-slipsheet.pdf


Unemployment Insurance Management Services Overview

Assist in the complete and timely response to state unemployment insurance separation notices through our technology and service teams

Review state unemployment insurance benefit statements for accuracy, protest inappropriate charges and work to resolve errors that have an adverse impact on the organizations state unemployment insurance rates

Provide customized reports that measure key performance areas such as responses to separation notices, successful and unsuccessful claim protests and other areas where the business can improve

Confirm the accuracy of assigned unemployment insurance rates and surcharges, protest incorrect rate assignments and evaluate statutory elections such as voluntary contributions and joint accounts

Assist in preparing for unemployment insurance claims hearings


Fortune 5 company with

diverse businesses

Claims administration

and tax advisory

$13 million in employer tax benefits over

2 years



http://rsvp.ey.com/CSG3/2016/1602/1602-1830415/UI%20Management%20Services%20Overview.pdf


Download the brochure here. Return to the home page here.

Todays global workforce is subject to increasingly complex laws in the areas of immigration, labor/employment and tax, potentially exposing businesses to significant monetary and reputational risk.

For this reason, human resources and tax professionals are often anxious to see if their policies, processes and systems are efficiently meeting workforce management and tax performance standards.

We have access to experienced professionals in tax and human capital from member firms in more than 100 countries and localities, adding continuity and efficiency to our suite of workforce services.

Watch the video here.

Workforce Advisory Services Working together with you in meeting your Affordable Care Act, employment tax and tax credits requirements

http://dev-am.iweb.ey.com/echannel/publications.nsf/0/2B818CDCFF847FB3852580DD0037A11B/$file/ey-workforce-management-audit-services.pdfhttp://link.brightcove.com/services/player/bcpid3819215113001?bckey=AQ%7E%7E,AAAA-EP4z8k%7E,tc77CdEXuhdZmp7apUPUe3u6HHhFQZON&bctid=4202565041001

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Connect with us EY | Assurance | Tax | Transactions | AdvisoryAbout EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US.

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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

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Slide Number 1Slide Number 2US payroll taxes Employer obligations How can we help? US payroll taxes Employee withholding taxes How can we help? Employment Tax Advisory Services Resources you need when you need themShort-Term Business Traveler Services (STBT) Transaction and Look-Back Review Services Audit Defense Services Information reporting Complex Advisory Services Employment Tax Process Improvement Services Unemployment Insurance Management Services Slide Number 15Slide Number 16Slide Number 17