Key Takeaways
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- Ongoing vigilance and attention to detail are essential for multi-state employers, as both HR and payroll regulations evolve and differ from one jurisdiction to another.
- Common oversights may lead to non-compliance, resulting in penalties and fees that impact your bottom line.
- Leveraging Thomas & Company’s employment tax solutions like Profile Recovery Solutions and Multi-State Compliance Navigator can streamline account management, simplify compliance research, and allow your staff to focus on other key tasks.
Constantly changing regulations, multi-state complexities, and tight deadlines make payroll tax compliance challenging for many employers. In an environment where minor oversights, like missing an electronic notification or failing to update an employee’s address, can quickly escalate into costly compliance failures, you can’t afford to be off your game. Discover the critical pitfalls and proactive solutions that can help your organization and your payroll tax team understand these complex requirements, staying compliant and avoiding penalties while navigating multiple states, no matter how often the rules change.
With the need for efficiency, security mandates, and the efforts to digitize government records, it is becoming more widespread and increasingly mandatory for employers to interact with state agencies through online portals. For multi-state employers, this can add a layer of complexity to understand who has access to the online portals for your accounts and who holds the user IDs and passwords for these accounts. Do you know how to access the online profiles associated with each state workforce agency where you do business? If not, things could be slipping through the cracks without you knowing.
State workforce agency websites hold the key to many employment compliance processes from quarterly filings to electronic notifications, online POA assignments, and more. If you can’t access your accounts, you could be missing important communications and requirements, leaving you vulnerable to penalties and fees. Even if you have access now, without a solid succession plan in place, you could lose access with a simple employee transition, leaving you wondering how to access these important accounts.
Don’t wait until it’s too late to take action.
Thomas & Company’s newest service offering, Profile Recovery Solutions, is designed to take the complexity out of the process and put you back in control of your online accounts. Our team of experts will track down or create the credentials for all required portals and manage access in one secure place. No more guessing, scrambling, or losing access during turnover. With a flexible and scalable service to fit your organization’s needs, you can choose the specific states or jurisdictions you need help with or cover all of your operations, giving you the support you need when you need it.
Paid Family and Medical Leave (PFML) is a system built to support employees in their time of need. But administration of these programs becomes complex with the multitude of systems in place across states and with laws and processes that are continually changing, making it difficult to remain compliant. Paid Family and Medical Leave regulations require ongoing attention to detail, including regularly reviewing state-specific requirements and ensuring all employee records are accurately maintained. Failure to keep up with these changes can result in missed deadlines, unexpected fines, and confusion for both employers and employees.
Let Thomas & Company do the research for you! With Thomas & Company’s Multi-State Compliance Navigator, it is quick and easy to find the appropriate resources for the PFML state requirements and scenarios applicable to your current situation. With all the information you need right at your fingertips, the Multi-State Compliance Navigator cuts down on research times and enables you and your staff to focus on other critical tasks.
Closing a tax account is often more complex than many employers realize. Often, there are more tasks that need to be completed besides simply filing a final report to guarantee that the account will be closed with all relevant agencies. And, if steps are missed in the closure process, you may face unexpected assessments, delinquencies, fees, and/or penalties from the state.
Don’t let simple requirements slip through the cracks and become costly mistakes.
Leverage the expertise of the Thomas & Company team to help you manage tax account closures by coordinating with agencies, verifying that accounts are closed completely and accurately, and we will work to resolve any outstanding assessments or delinquencies. This proactive approach helps your organization maintain compliance and eliminate financial risks associated with improper account closure.
Mergers and acquisitions can open new doors for your organization, providing access to new markets and resources. While the decision to undertake such a transaction is a strategic business decision, the transaction itself can have wide-spanning implications, bringing new challenges to departments across your organization. Not only do you need to report the transactions, but you may also need to make decisions about transfers of experience that can impact your current and future tax rates, changes in leadership can impact access to your online accounts, and more. Even doing business in a new state requires your team to be aware of new state and local tax laws that you did not have to deal with before.
When an acquisition, merger or reorganization occurs, employers are required by state unemployment agencies, with no exceptions, to disclose information relating to the transaction. Reporting requirements are complex and undisclosed or erroneous reporting can result in penalty tax rates, tax rate increases, penalties and interest charges and/or missed tax saving or refund opportunities.
We know what you need to do.
Thomas & Company’s team of employment tax experts—with over 125 years of combined experience—knows what it takes to get the job done right. We work directly with the state agencies to ensure all applicable transactions are reported properly and tax rate transfers are processed. We also review and analyze refund opportunities, provide relevant findings, and secure applicable refunds while following all statutory requirements.
Understanding where your company is liable requires continual attention to both remote and on-site employee locations. Failure to appropriately track these details can result in non-compliance, though managing changes in these locations can be challenging and complex.
For all employees, it’s crucial to keep address information accurate, as this directly impacts tax withholding, reporting requirements, and your overall compliance obligations. While some organizations rely on self-service portals for employees to update their addresses, these updates often go unchecked, leading to potential compliance gaps.
Physical store or office locations also pose risks. Even a small move across town can shift your company into a new jurisdiction with different tax, wage, and reporting requirements. This means that compliance status can change overnight, making it essential to monitor any location changes closely.
We do the research so you don’t have to.
The first step in mitigating these risks, companies should implement policies and processes that require regular assessment of address and work location changes, ensuring that compliance is maintained at all times. But tracking is only one part of the equation—you also need to know about every varied and changing requirement to remain compliant. That’s where Thomas & Company can help! Our Multi-State Compliance Navigator does the research for you and guides you step-by-step through the unique scenarios to help you fully understand where your tax liabilities are.
Transform Employment Tax Challenges into Opportunities
Thomas & Company’s Employment Tax Service suite of offerings provides the subject matter expertise you need to navigate complex employment tax matters with a partner you can trust. From registration and closures services to IRS representation, tax recovery, Multi-State Compliance Navigator, and more, Thomas & Company’s innovative technology paired with our team of employment tax experts, makes sure you are fully supported in every aspect of employment tax compliance, no matter how complex your organization’s needs may be.


