Thomas & Thorngren

Historically, the IRS has allowed a single-member/single-owner limited liability company that has not elected to be treated as a corporation to be disregarded as an entity separate from its owner for federal tax purposes.  Such “disregarded entities” have been permitted to use the owner’s taxpayer identification number and to report wages as though the employees [...]

States have begun the process of establishing their unemployment taxable wage bases for 2009.  Click here for a listing of these taxable wage bases. If there are any questions, please contact us.

We have been advised that the Florida Department of Revenue has established a unit which focuses on detecting SUTA-dumping.  This unit is identifying situations in which employees have transferred from one employer account to another, but neither employer has provided the Department with an explanation or a notification of the sale or transfer of business.  [...]

Attached is a notice from the Employment Security Commission of North Carolina about the Remote Tax Filing (“RTF”) application for submitting quarterly tax and wage information online, and the “E-check” payment option for making tax payments online. The attached notice refers you to the Commission’s website for information on establishing online filing and payments.  The [...]

We anticipate that higher unemployment tax rates will take effect in Tennessee on January 1, 2009.  Because of a significant increase in unemployment insurance claims in Tennessee, it is all but assured that a higher tax rate table will trigger into effect for all Tennessee employers except those assigned the new-employer tax rate and experience-rated [...]

A recent amendment to Alabama Employment Security Law makes the state law consistent with federal anti-SUTA dumping provisions. The federal SUTA Dumping Prevention Act of 2004 was enacted to curb abuses by some employers and prevent manipulation of state unemployment tax rates by such actions as transferring payroll from one legal entity to another for [...]

Under certain circumstances the net federal unemployment tax (“FUTA”) payable by employers must be increased when a state unemployment agency has borrowed federal funds to pay unemployment benefits. If a state has an outstanding loan balance on January 1st of two consecutive years and has not repaid the balance by November 10th of the second [...]

This morning I got curious about what we might expect in terms of changes in unemployment tax rate tables and adjustment factors for 2009.  In light of the headline news about economic problems and higher unemployment, one would anticipate that unemployment tax rates will be higher in 2009 in a general sense.  I found that [...]

The state unemployment agencies continue to struggle to secure funding for costs associated with administration of the unemployment insurance program. Such funding was originally intended to come from federal unemployment tax payments made by employers, but the full amount of such payments has not been distributed to the state agencies in recent years. This shortfall [...]

The Basics of Emergency Unemployment Compensation Provisions for emergency unemployment compensation (“EUC”) are included in HR 2642, signed by President Bush on June 30, 2008.  Employer tax accounts are not chargeable for EUC and these benefit payments will not directly affect your UI tax rates. The state agencies are gearing up quickly to implement this [...]