presentation_found money program

May 1, 2023 Confidential & Proprietary 1

State Unemployment Tax Recovery“The Found Money Program”

Confidential & Proprietary

What’s “The Found Money Program”?

“The Found Money Program” is a performance-based solution delivered and performed at NO COST to you. It is designed to identify and secure cash refunds and credits for prior year State Unemployment Insurance (“SUI”) tax overpayments and reduce your future SUI tax rates.

NO COST means NO REFUNDS/CREDITS = NO FEE PAID! A true “Win-Win” for our clients!

Quick Facts

• Client savings average in excess of $300,000 • NO COST to you – a fee is paid ONLY if we secure savings on your behalf (fee = % of savings)

• Non-invasive and non-intrusive service - all work performed at our offices in New Jersey

• No detailed payroll records required - only copies of annual rate notices and quarterly filing summaries

• Requires very little employee time – the time is all on us

• All refunds/credits go directly from the state(s) to you – we never take custody of your assets

• Sample clients include: Viacom, CBS and Tiffany and Company


Introduction

• Many unsuspecting businesses overpay on their SUI taxes each year. This is due in large part to the complexity of state tax rate calculations, the many variables involved therein and the high level of inherent risk that exists in anything the state administers on your behalf.

• Our solution puts “found money” back into your pocket. In fact, many of our clients have realized savings and cash “back-in-pocket” in excess of $300,000 as a result of our work.

• Many of our clients were employing outside firms and assumed their annual tax rates were fine; our service and its success proves otherwise. To protect themselves, many companies will use an outside firm to manage their unemployment function, from rate validation to claims processing.

• By reducing your SUI expense, we can put significant resources back into your bottom line. Our service also helps you reduce your annual tax rates for years to come and guides your staff on how to identify issues in future years.


Sample Client List

Acosta Sales & Marketing

Bi-Lo / Winn Dixie

Cardinal Health

CBS

CDW Associates

Curtis Circulation Company

Hudson News Group

KeyBank

Tiffany and Company

Valley National Bank

Viacom


Why are Companies Overpaying?

Because state tax rate calculations used to determine your annual tax rates are complex and incorporate many variables and many moving parts. Consequently there is a high inherent risk these variables are adversely impacting your tax rates.

Our program is designed to carefully analyze these many variables through our review of areas including but not limited to:

• State tax rate calculation models and application

• Contributions paid-in to date

• Reserve balances and benefit ratios

• Employee transfers

• Federal Employer Identification Number (“FEIN”) tax structures

• Impact of significant business transactions


Transparency of Our Service

We take pride in providing you tremendous financial rewards while doing so in a transparent manner:

• No detailed/confidential payroll information is required

• Requires very little employee time - if any at all

• You receive all refunds/credits directly from the state

• Non-invasive, non-intrusive - all work performed at our office


Minimal Information Required

During our program delivery we analyze the current and prior three years of SUI taxes paid. This is because most states use a three year rolling history to determine your annual SUI rates. As such, the only information we require for the current and prior three years is:

• Annual state rate notices – for all states active during the review period (current and prior three years)

• Quarterly state unemployment tax filing summary page – for all FEIN’s during the review period (we DO NOT require the accompanying taxable wage reports by employee)

• List of any significant business transactions – i.e., M&A, restructurings, transfers


Why are we successful?

• Client-first relationship

• We leave no stone unturned – your financial success is our success

• A deep-dive, vertical analysis for every FEIN

• Highly technical and client friendly staff

• Credible relationships with state agencies

• Highly ethical – we terminate any client relationship if asked to “SUI dump”


Review Process

Retroactive Review:

We review the last three years of SUI payments and the variables therein in order to identify and secure refund/credit opportunities from prior overpayments.

Prospective Review: • We review your current tax structure and evaluate knowledge of any upcoming

business transactions to minimize unemployment tax payments in the future

• We evaluate the impact of our retroactive review on future tax rates

• We analyze opportunities for voluntary contributions for the upcoming tax year


“One Size Fits All”

“The Found Money Program” can service any sized client in any industry, from a small mid-sized regional distributor to the largest Fortune 100 company. We have:

• A comprehensive database solution for data analysis

• A systemic review process for efficient identification of issues

• An in-depth knowledge of all state and provincial laws

• Many years of experience in the field

• Experience in efficient dealing with state agencies


Why we succeed even if a client uses a full-service unemployment firm

Full-service firms do not do the deep-dive, vertical analysis necessary to reasonably analyze your tax rates each year (each year requires a deep-dive analysis of the prior 3 year rolling history). Why? Economies of scale dictate most of their time and resources be dedicated to services that are quantifiable and justifiable to the client:

• Claims processing – profitable, turn-key, measurable and usually generates savings for the client in excess of fees

• Large consulting projects – special projects are manageable and usually generates savings for the client in excess of upfront fees

• Voluntary contribution analysis – annual review determining if voluntary contributions are beneficial (usually infrequent and rare)


Program Timeline and Sequencing

1. Execute agreement

2. Receive rate notices and quarterly tax filing summary pages

3. Preliminary analysis - cross-analyze data components, business transactions and tax structure

4. Issue preliminary status report – report our initial findings to you

5. Report findings to state – upon your approval

6. State approves and issues refunds/credits – these go directly to you

7. Invoice you for refunds/credits identified and secured – we do this only once you confirm your receipt of said refunds/credits


CMS Group Contact Information

Matt WalshPresident and CEO

CMS GroupTwo Forest Avenue

Oradell, New Jersey 07649201 690 6687 DIRECT

201 925 0508 [email protected]

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