EMPTECH NEWS RELEASE
Barry Bagus of Emptech Published in Automotive Buy Sell Report.
TORRANCE, CA, January 7, 2015– Barry Bagus, a Director at Emptech, has contributed an article to Automotive Buy Sell Report, entitled “Don’t Leave Employment Tax Money on the Table in a Buy Sell.” In the article, Bagus expresses concern that automobile dealers are often at risk of missing out on important tax refund opportunities and getting caught up in unexpected non-compliance problems after a transaction.
The article offers a timely reminder for car dealers to review any transactions — such as restructuring legal entities or acquisitions — to prevent non-compliance with reporting requirements and avoid leaving behind tax savings and refunds that commonly total $20-$100K+ (for single dealer transactions).
Having handled close to 2,000 M&A retrospective review and current transaction projects for many Fortune 100 companies as well as auto dealerships of all sizes across the U.S., Emptech knows just how exposed those in the auto dealership industry are likely to be. The asset deals that are so common in the auto dealership industry have a range of specific reporting requirements that must all be met. Often, they are not.
As Bagus explains in his article, the employment tax area is at high risk of being overlooked or mishandled during transactions in any industry — by virtue of the fact its ownership is split across multiple parties, and each tends to assume it is being well-covered by someone else. Payroll may think its being handled by accounting, the CFO may assume its being handled by the Payroll vendor or an outside accounting firm, accounting may think Payroll will take care of it, the CEO is assured all is in order, and that’s how companies miss out on significant savings opportunities and are caught off-guard by the high costs of non-compliance — time and time again.
The best time to handle these issues are at time of transaction, but as Bagus points out, the start of the New Year affords another opportunity for auto dealers to get their tax and finances in order. In some cases, its possible to recover savings up to three years after the transaction.
About Barry Bagus– A Director at Emptech, Barry Bagus has 25 years of experience in Talent Management and Payroll / HR Risk Management Solutions. Barry has also given presentations on controlling unemployment insurance costs to professional Payroll and Human Resources organizations throughout Southern California.
About Automotive Buy Sell Report– Automotive Buy Sell Report is the first website and weekly report to give participants in the automotive dealership buy sell industry a place to find news regarding the purchase, sale and valuation of automobile dealerships; state-by-state listings of professionals providing services to the M&A industry; and online classified ads where buyers and sellers can anonymously contact each other with expressions of interest regarding the purchase or sale of a dealership or partners wanted for dealership succession. To learn more, visit their website.
About Emptech– Emptech is a national compliance company that develops and provides best-of-class administrative human resources technologies backed by dedicated account service teams and consultative tax services. Emptech provides industry-leading HR “employee life-cycle” solutions including Talent Management, Electronic I-9, Verification of Income and Employment, Unemployment Claims Management, Credits, and Employment Tax Consulting. For more information about Emptech’s Employer Services, please download our new services brochure or reach out to us here.
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