Employment and payroll tax services

Whether you’re expanding into new states or countries, managing a remote workforce or struggling to keep up with changing regulations, employment tax issues can quickly become a source of stress and risk for your business.

Complex employment tax rules, frequent regulatory changes and the demands of multi-jurisdictional compliance can overwhelm even the most capable teams. Small errors in payroll or worker classification can lead to costly penalties, audits and lost productivity.

RSM’s employment tax specialists work alongside you to simplify compliance, resolve issues and help you stay ahead of regulatory changes. Our practical solutions reduce risk, save time and provide confidence that your payroll and employment tax obligations are handled correctly—no matter how complex your workforce or operations become.

Employment tax compliance

RSM’s employment tax professionals help you navigate quarterly and annual reconciliation processes to identify high-risk areas and assist with registrations, state unemployment insurance experience transfers and account closures in state and local jurisdictions. Additionally, our team can review and prepare amendments required for federal, state and local tax return compliance.

: We assess your payroll processes end to end to help you comply with federal, state and local regulations. Our review identifies potential exposures and provides actionable leading practice recommendations to mitigate risk.

: RSM can assist employers in managing tax obligations for employees working across jurisdictions, including telecommuters and business travelers, to facilitate accurate tax withholding and reporting.

: Our team performs risk assessments and supports companies through audits or proactive reviews to help ensure proper classification of workers. As appropriate, we can support employers with mitigation activities such as applying for voluntary disclosure programs or section 530 relief.

: RSM professionals advocate on your behalf during employment tax audits, negotiating assessments and identifying safe harbors that may be available to protect your business. We can also work with companies to facilitate resolutions for payroll and employment tax notices.

: We guide you through payroll challenges during mergers, acquisitions and restructurings to help you achieve compliance, minimize exposure and identify possible employment tax cost reduction.

: RSM professionals help employers navigate the new reporting requirements under the OBBBA related to tips and overtime compensation. For businesses affected by the expansion of Federal Insurance Contributions Act (FICA) tip credit eligibility, such as those providing beauty services (e.g., barbers, hairstylists, nail technicians and aestheticians), RSM can assist with preparing the documentation needed to take advantage of available tax savings.

Related insights

Frequently asked questions about employment tax

: The primary types of employment taxes include federal income tax withholding, Social Security and Medicare taxes (FICA), federal and state unemployment taxes (FUTA and SUI), and other payroll-related taxes, such as local income taxes, disability insurance and workers’ compensation where applicable.

: Common employment tax compliance challenges include keeping up with changing regulations, managing payroll for remote and multistate employees, ensuring accurate worker classification, meeting employment tax filing and payment deadlines, and responding to tax notices or audits.

: Businesses can reduce the risk of employment tax penalties and audits by maintaining accurate payroll records; staying current with federal, state and local tax laws; properly classifying workers; and regularly reviewing payroll processes for compliance.

: If you receive an employment tax notice, review the details carefully and respond promptly. It is often helpful to consult with employment tax specialists who can help you resolve the issue, communicate with tax authorities and minimize potential penalties.

: Employment tax services provide guidance on tax withholding and reporting requirements for employees working in multiple states or remotely, helping businesses stay compliant with complex multi-jurisdictional regulations.

: Proper worker classification is essential because misclassifying employees as independent contractors can result in significant tax liabilities, penalties and increased scrutiny from tax authorities.

: Employment tax and payroll issues can create hidden liabilities that affect deal value if not identified before a transaction. Reviewing these considerations before and after a transaction helps reduce compliance risk, ensure payroll continuity and identify potential exposures or savings resulting from changes in entity structure, workforce or reporting obligations.

Contact our business tax professionals

Complete this form and an RSM representative will be in touch shortly.

THE POWER OF BEING UNDERSTOOD

ASSURANCE | TAX | CONSULTING

RSM US LLP is a limited liability partnership and the U.S. member firm of RSM International, a global network of independent assurance, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. Visit rsmus.com/about for more information regarding RSM US LLP and RSM International.

Technology alliance platforms

Featured topics

Real Economy publications

Platform user insights and resources

About us

Experience RSM

Spotlight on culture

Work with us