Employment Tax

Tax departments rarely are responsible for payroll tax issues until there is a problem.

Scott Schapiro

Scott Schapiro

Principal, Tax, KPMG (US)

+1 703-286-8267

A closer look at potential issues

Payroll and employment tax issues. In most organizations, these are likely to be the responsibility of human resources or finance—until there is an IRS assessment or state employment tax audit. Then it becomes a matter for the tax department, and by that time, it may be too late for timely intervention.

KPMG's Employment Tax team helps companies identify payroll and employment tax issues early on, and provides guidance to resolve them before they become significant problems.

Payroll and employment tax services 

Our professionals can provide assistance in a wide range of areas. For example:

  • We work with you to identify, quantify and recover payroll tax overpayments and review current payroll department processes and procedures, helping to identify and remediate identified areas of potential exposure.
  • We can help you comply with federal and state employment tax requirements during restructuring or related M&A transactions, and identify potential savings opportunities.
  • We also provide assistance in other key areas, such as proper compliance with multi-jurisdictional employment tax withholding and reporting requirements.
  • Additionally, our skilled professionals can assist with issues related to independent contractors. This includes analysis and improvement of processes and procedures built around your organization’s independent contractor review, approval and maintenance policies for worker classification issues -- as well as unbiased recommendations about the independence of potential contractors, through our Independent Contractor Review Service.

Insight into international payroll issues

KPMG Employment Tax professionals can also help with international payroll issues, working with the KPMG's Global Mobility Services to 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

KPMG Employment Tax professionals can help you simplify compliance complexity of employment tax issues, wherever you need assistance.


Multistate Nonresident Withholding Survey

KPMG teamed with the American Payroll Association to conduct a survey of tax/payroll professionals. The results provide an in-depth look at corporate reaction by over 1,300 participating organizations on the ever-changing payroll tax issue.

2018 Payroll Year-end Guide

This report covers a wide array of topics, including sections covering policy issues, changes reflecting the requirements of the recent U.S. tax code overhaul, and common concerns at year-end that have been identified as historically troubling for employers.

2018 Payroll Year-end Checklist

KPMG’s Employment Tax practice teamed with the professionals at Bloomberg Tax to develop a simple checklist for employers to consider as they prepare for payroll year end. While not meant to be an all-inclusive list of year end planning steps for every employer, it is intended as a series of milestones to consider within the payroll department as the current year winds down. Every organization’s challenges will differ, but this checklist can serve as a road map to year end success in this space.

Related service

2018 Payroll Year-end Guide and Checklist