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CCC Acquires Two Unemployment Cost Management Firms

 

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On August 15, 2017, Corporate Cost Control (CCC)  acquired two unemployment cost management firms; Unemployment Tax Advisory Corporation (Wilmington, DE) and Heiss, Gibbons & Company, Inc. (Mechanicsburg, PA)

Unemployment Tax Advisory Corporation (UTA) was founded in 1989 by Judy Snyder. Known for their ability to identify unemployment compensation control strategies that yield positive bottom line results, UTA expanded through organic growth and acquisition into one of the largest regional UC cost control companies in the country. Based in Wilmington, DE, UTA provides service to employers throughout the United States.

Judy Snyder will join CCC as the Director, Mid-Atlantic Division.  “We are excited to be to be a part of  Corporate Cost Control, a company that shares our commitment to excellent customer service. In addition to  top-notch UC Cost Control, we are also looking forward to offering additional services that will help yield the best bottom-line results for our clients.”

Heiss, Gibbons & Company, Inc. (HGC) was  founded in 1944.   From the beginning the company’s mission has been “To provide the finest Unemployment Cost Control Program to those we are privileged to serve through a Professional, Comprehensive and Personalized approach that will result in minimal unemployment liabilities and costs for our clients.” Based in Mechanicsburg, PA, HGC works primarily with employers in Pennsylvania. In 2001 HGC was acquired by Unemployment Tax Advisory and continued to operate as a wholly-owned subsidiary under the Heiss, Gibbons & Company name. The acquisition by CCC was a natural fit for continued improvement to the services provided to their clients.

Get to know the new additions to CCC’s Management Team:

Judith D. Snyder, SPHR, SHRM-SCP

Director, Mid-Atlantic Division

Judy Snyder is a graduate of the Pennsylvania State University. In 1984, she began working in the Unemployment Compensation cost control field. In 1989, Ms. Snyder founded her own company, Unemployment Tax Advisory Corporation in Wilmington, DE. At UTA, Ms. Snyder has spent her career working with for- profit and non-profit employers to help them identify Unemployment Compensation cost control strategies that yield positive bottom line results. Realizing that each company is unique, the team of specialists at UTA crafts specific plans to control and minimize Unemployment Compensation costs for each client.s. Snyder has extensive experience coaching and representing employers at unemployment compensation appeals hearings. She is also a frequent lecturer who shares her strategies for success with employer groups.

John G. Schussler, MBA

Director, Delaware Office

John G. Schussler is a graduate of Carnegie Mellon University with a Bachelor of Science in Administration and Management Science and a MBA from Drexel University. He has been working at UTA overseeing the administration of client accounts for 27 years.Mr. Schussler is responsible for the Delaware office that provides client services to our regional clients.

Kevin B. Allison

Director, Mechanicsburg, PA Office

Kevin began his career with Heiss, Gibbons & Company, Inc. in 1982. Since then, he has represented employers providing personalized, comprehensive UC cost control services to diverse industries, with an emphasis on UC hearings. He also has a strong interest in Unemployment Compensation legislative matters both the state and national level as they relate to employer’s interests.

We look forward to the contributions that Judy, John and Kevin will make to our management team.  Their experience, knowledge and dedication are a welcome addition to CCC.


Unemployment Tax Update:

Voluntary Contributions

Child-putting-money-in-pi-002It just does not seem possible but the 2018 rate season has begun with Vermont and New Jersey issuing their fiscal year rates.  New Hampshire and Tennessee will issue by early September.    As in the past three years, we expect most of the rate charts, multipliers and surcharges to decrease or remain the same as unemployment springs back from the worst recession since The Great Depression.   More than half the nation closed the 2018 rate computation as of June 30, 2017, which means the rates are already set for most employers although they will not be issued immediately.  About thirty states will issued by December 31st with the remaining states issuing in January – March.

Once the rate notice is issued, it is not too late to save tax dollars.  Many tax savings still exist for employers.  The most popular money saving opportunity is the voluntary contribution (VC) option.   Twenty-six states allow the voluntary contribution option.  The concept behind the VC is to pay monies in advance to obtain a lower rate.  An employer needs to use their current or projected taxable payroll to multiply by the rate reduction and then subtract the amount it took to buy down the rate.   The result is the savings for the year or cost for the year.   A savings would mean the VC is profitable.

Sound simple?  Well it is; however, there are factors that need considered when determining the taxable payroll to use to determine whether the VC is profitable.   The first would be, is your company decreasing employee or increasing employees?    A decrease in employment would obviously reduce the taxable payroll making the VC less profitable or negate it completely.  An increase in the taxable payroll could make a VC that was not profitable a great option.

Transfers of business is another evaluation process of the taxable payroll.    If you divest a portion of a state account number, the profitability decreases.   If you acquire or merger another business into an existing business, one of two actions may be taken by the state agencies.   Depending on the effective date of the transaction, the unemployment rates may be combined changing the entire computation or the agency may wait until the next rate year which would mean the taxable payroll would increase.

The key to determining whether a VC is profitable, is being able to estimate what is going to happen with your taxable payroll for the next year.  Generally speaking, most of the savings is realized within the first quarter of the year.    Corporate Cost Control provides all their employers with our recommendations of whether the voluntary contribution is profitable or not profitable.

If you have any questions, please contact me at  ngreen@corporatecostcontrol.com. or (800) 207- 6926, Ext. 418 or your tax analyst.


Guideline

PEO Webinar

Staffing

CCC will be hosting a webinar specifically for PEOs on September 27, 2017 at 2:00 Eastern.   Norma Green, Director of Tax, along with Robert Mazza, Senior Account Executive will be answering all your questions.

Please register here

Contact CCC with any questions regarding this or any of our trainings, please contact Pamela Kiel, Director, Communication.  (800) 207-6926  ext. 220 or or pkiel@corporatecostcontrol.com

 

 

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