Employment Tax Advisory Services

EY employment tax professionals work every day with businesses to address the federal, state and local payroll tax issues they face. Learn more about how we help our clients identify risks and opportunities within their employment tax operations.

What EY can do for you

EY Employment Tax Advisory Services help companies across the globe evaluate their US payroll and employment tax operations and practices, identify employment tax cost savings opportunities aligned with the company’s systems and processes, and implement change to match their long- and short-term objectives.

Employment Tax Advisory Services Library

Access a library of Employment Tax Advisory Services updates and reference materials.

Download the Employment Tax Advisory Services brochure

US short-term business traveler and remote worker tax services

Travel occurs in almost any business, and when it crosses state and local borders, the requirements can be complex and fraught with risk for both employers and their employees.

Increasing the volume and complexity of multistate employment is the large spike in telework following the COVID-19 emergency, which caused many employers to acclimate to and permanently adopt remote work arrangements.

We help businesses manage the multistate employment landscape with comprehensive reference materials, technology and an experienced team of tax professionals.

Indirect Tax Worksite Evaluator and Compliance Services

In the wake of the pandemic, employers are working to identify their future return-to-work business model.

Find out more here.

Employment tax audit support and risk controversy services

Whether a business is seeking an employment tax audit risk evaluation or assistance with a current employment tax audit, our professionals offer the skills and experience needed to provide assistance throughout the process. Our dedicated employment tax team works across EY US tax practices to provide a wide range of risk management services.

Employment tax master data review services

With the support of EY US’ tax technology resources and our experienced team of employment tax professionals, we provide an extensive approach to the review of employee state and local payroll tax configurations and the related payroll processes. A thorough review and robust feedback process help provide our clients with knowledge and information to comply with payroll tax requirements.

Find out more here.

Employment tax process improvement services

From the point of hire to the transmission of tax returns, companies rely on numerous individuals, systems and vendors to get tax services right. Professional tax advisors can assist businesses in gaining insights into their risks and opportunities through an independently conducted employment tax process review.

We perform employment tax process reviews through staff interviews, data analysis and random sampling, where we help our clients to identify areas of opportunities and risk.

State information withholding and reporting services

Like the federal government, state taxing authorities also impose information reporting requirements, including Forms W-2, 1099-MISC and 1099-R. Additionally, states have different requirements as to when income tax withholding is required from nonemployee compensation. Our experienced professionals assist businesses in navigating their state information reporting requirements.

EY can help businesses navigate 1099 information reporting and withholding to address risk and unnecessary expense.

Find out more here.

TaxAbility

At the core of employment tax compliance are the tax configuration settings within the payroll system for pay and deduction codes. These settings direct whether a compensation type is included in federal, state and local taxable wages and whether a deduction reduces taxable wages.

EY offers an automated evaluation for pay and deduction code tax setups as well as a host of other exception reports to efficiently assist businesses in detecting potential compliance issues.

This is supported by a robust library of tax configuration settings for more than 180 pay and deduction types, with distinctive navigation features for quick identification of the tax rules that apply. This enables us to pair technology with insights and guidance from our experienced employment tax, compensation and benefits professionals.

Employment tax strategy and transactions

The moment a company contemplates a merger, acquisition or reorganization, an intricate system of federal, state and local employment tax requirements is triggered. From due diligence to filing returns, opportunities arise to address employment tax costs. And, because most taxing jurisdictions allow businesses to file corrections for prior periods, it is often not too late to look back for savings and refund opportunities after the transaction is complete.

With years of experience in guiding businesses through these transactions, our employment tax team is positioned to provide the employment tax skills necessary in due diligence and in the planning, implementation and post-implementation review of mergers, acquisitions and reorganizations.

Find out more here.

Unemployment insurance claims services

Our unemployment insurance (UII) claims software automates the in-house management of UI claims for timely response to state claims notices, claims tracking, identification and tracking of chargeability, claims hearing management, and UI tax rate projection and verification.

Our software can simplify and help streamline the claims process. Robust functionalities and capabilities provide key insights to help employers manage costs while striving to keep data secure by implementing NIST leading practices. Backed by years of UI claims management experience, our software offers:

  • A cloud-based environment can flex and scale to meet capacity needs.
  • APIs for real-time access to data for accurate and timely claims verification.
  • Flexible design and function, and automation that is designed to help streamline processes and produces efficiencies to better manage costs
  • Scalability to meet growing demand and performance objectives
  • APIs for real-time access to data for accurate and timely claims verification
  • Standardized processes to simplify integrations with other systems and applications
  • Transparency into the claims process to help with decision-making and performance evaluation
  • Data privacy and security (employee data will only be used for UI purposes)
  • Managed services for UI claims through our team of professionals who can confirm and project UI tax rates on your behalf.

Ernst & Young LLP was recognized by the National Association of State Workforce Agencies from 2019 through 2021.

Find out more here and here.

Disaster relief and recovery services

When the president declares an emergency or major disaster, a series of special tax provisions are triggered, many of them benefiting employees impacted by the event. Our experienced professionals are familiar with the disaster relief tax provisions and, by working with our colleagues in compensation and benefits and exempt organizations, can offer a full range of services for employers needing assistance in understanding the various ways it can assist the workforce and the applicable tax implications.

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