Employment Tax (U.S. and International) 

Tax departments in most organizations are not typically responsible for or focused on payroll or employment tax issues. In fact, payroll is more likely to have a direct relationship with the human resources or finance department.

However, if a problem arises – such as an IRS assessment or state employment tax audit – it generally becomes an issue for the tax department. By that time, it may be too late if the issues are not addressed in a timely manner.

 

KPMG LLP’s Employment Tax practice helps companies identify payroll and unemployment tax issues early on, and provide guidance to resolve them before they escalate into significant problems.

 

This includes assistance in:

 

  • Identifying, quantifying and recovering payroll tax overpayments
  • Reviewing current payroll department processes and procedures, and working to identify and remediate identified areas of potential exposure
  • Complying with federal and state employment tax requirements during restructuring or related M&A transactions, and identifying potential savings opportunities
  • Identifying and coming into proper compliance with multi-jurisdictional employment tax withholding and reporting requirements
  • Analyzing and improving processes and procedures built around an organization’s Independent Contractor review, approval and maintenance policies for worker classification issues. KPMG’s Independent Contractor Review Service provides companies with an unbiased analysis of proposed independent contractor relationships, providing fast, thorough recommendations about the independence of potential contractors
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    For international payroll issues, KPMG LLP’s International Executive Services (IES) practice works with Employment Tax professionals who provide support with a variety of complex matters, including:

     

    • International payroll year-end reporting and withholding assistance (W-2 and Compensation Summary reviews)
    • U.S. and non-U.S. shadow payroll calculations
    • Year-end payroll calculations (e.g., gross-up calculations)
    • Equity reporting, withholding and related tax deposits
    • New location start-up assistance (employee registration and payroll set-up at host)
    • Totalization and Social Security certificates of coverage
    • Income Tax Treaty research and review for non-U.S. employees

     

    To learn more about our Employment Tax practice, please contact:

     

    Scott Schapiro

    National Principal in Charge – Employment Tax

    703-286-8267

    sschapiro@kpmg.com

     

    Ray Pascuzzi

    Partner, Tax

    303-382-7325

    rpascuzzi@kpmg.com