Unemployment Insurance Services
INCREASED PROFITS THROUGH TAX RATE REDUCTIONS. "WHICH TAX ?"
The State Unemployment Tax, reported and paid quarterly by each employer.
REMEMBER: This is a 100% Employer Tax That Can Be Controlled!
"HOW CAN SAVINGS BE REALIZED?"
NOTE: THE FOLLOWING EXAMPLE AND CHART IS AN EXAMPLE OF RATES FOR CALIFORNIA EMPLOYERS. TAX RATES AND TAXABLE WAGES VARY FROM STATE TO STATE.
By reducing your unemployment tax rate to the minimum. The 2013 tax rate assigned to an employer varies from a high of 6.2% to a low of 1.5%. The rate is applied to the first $7,000.00 of wages paid to each employee during the calendar year. This means that you can pay as much as $434 per employee each year, or as little as $105 per employee each year; a difference of $329 per employee each year.
"HOW IS THE TAX RATE DETERMINED?"
Each quarter, the employer reports and makes payroll tax contributions to the State in accordance with his individual assigned tax rate. Former employees, if determined eligible, may collect funds paid out of these contributions. The balance at the end of the year is credited to the employer's reserve account. The higher the reserve balance, the lower the tax rate for the next calendar year.
"HOW CAN THE BEST POSSIBLE TAX RATE BE ACHIEVED?"
1. By control of charges to your reserve account.
Former employees may collect funds drawn from your account as late as two and a half years after termination. Every effort must be made to ensure that ineligible former employees are not allowed to draw form your account.
2. By correction of errors.
It is necessary to audit charges to your account annually to preclude errors from reducing your reserve balance. It is also necessary to verify calculations used to determine your rate for the next year.
3. By taking timely advantage of special tax situations.
If you acquire a portion or all of another employer's business, you may be eligible for transfer of some or all of his reserve account balance.
"WHAT WILL ECCG DO FOR YOU?"
The fee for our service is nominal and based on the number of employees on your payroll. There are no "hidden" or "extra" costs. Most employers do not have anyone on their staff with the specific knowledge and experience necessary to achieve optimum tax rates. Even if they did, the time spent would cost much more than our fee. We devote full time professional attention to realize the lowest possible tax rates for our clients.
For a free analysis, please call or write...
Employers Cost Containment Group
Telephone: (818) 841-5646
Fax: (818) 841-5516
For all inquiries, please email Cal
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