Recruiting specialists for state tax regulations

As businesses expand their footprint across multiple states, navigating the complex web of state tax regulations becomes increasingly challenging. Each state has its own unique set of tax laws, rates, and filing requirements that companies must adhere to in order to remain compliant and avoid costly penalties. To effectively manage these intricate state tax obligations, many businesses are turning to recruiting specialized tax professionals.

Why you need state tax specialists

State tax regulations are notoriously complex and constantly evolving. What worked last year in one state may not apply this year or in another state. Staying on top of all the nuances and changes across 50 states is a tall order for any tax department, especially for small to mid-sized companies with limited in-house tax resources.

Some of the biggest state tax challenges businesses face include:

• Determining nexus and filing obligations in each state
• Applying the right sales and use tax rates and rules
• Managing exemption certificates
• Calculating state income apportionment
• Handling state tax registrations, filings, and notices
• Preparing for state tax audits

Recruiting tax specialists with deep expertise in state and local tax (SALT) helps you offload these burdens. Dedicated state tax professionals keep a pulse on changing tax laws across states, ensure compliance, minimize your tax liability, and reduce audit risk. Here's how to go about recruiting this valuable talent.

Determine your state tax recruiting needs

Before recruiting, clearly define the role you need to fill and the specific state tax skills required. Consider questions like:

• Which states does your company do business in?
• What SALT areas are most challenging for your team (e.g. sales tax, income tax, property tax)?
• Will this be a multi-state role or focused on certain key states?
• Do you need strategic expertise, like analyzing nexus and structuring business activity across states? Or is the focus more on compliance and reporting?
• Are specific industry skills required, like ecommerce sales tax or oil and gas severance tax?

Outlining your ideal candidate profile upfront will help you recruit more efficiently and find the right fit faster. Discuss the role with your current tax team to get their input on skills gaps and pain points that a new hire could address.

Know where to look for state tax talent

State tax specialists can be trickier to find than general tax accountants. A few of the best places to recruit for SALT positions include:

1. Online job boards: Post on general sites like Indeed, ZipRecruiter and LinkedIn as well as tax and accounting-specific boards like TaxTalent and the AICPA job board. Use relevant keywords in your job title and description like "state and local tax manager" to attract applicants with SALT experience.
2. Professional associations: Tax organizations like the Institute for Professionals in Taxation (IPT), Council On State Taxation (COST), and state CPA societies have job boards and can help spread the word to their state tax members.
3. Specialist recruiting firms: Some recruiting agencies specialize in filling corporate tax positions including SALT roles. They often have existing relationships with state tax professionals open to new opportunities. Fees can be high but may be worth it for hard-to-fill roles.
4. Employee referrals: Don't overlook your current employees as a recruiting source. Incentivize them to refer state tax specialists from their network.
5. Competitors: Research similar companies and identify state tax professionals on their team using LinkedIn or conference attendee lists. While poaching isn't advisable, some of these individuals may be open to new opportunities you can connect with them about.

Evaluate state tax experience and expertise

State tax is a highly specialized field, so you'll want to thoroughly vet candidates' SALT knowledge during the recruiting process. A few key things to look for and ask about include:

• Direct experience managing state tax compliance, provisions, audits, tax technology, etc. across multiple states
• Deep knowledge of sales and use tax, state income/franchise tax, property tax, excise tax, and/or other SALT disciplines
• Expertise with specific high-priority states for your company
• Experience with state tax in your company's industry
• State tax consulting background with Big 4 or other public accounting firm
• Job stability and progression with increasing state tax responsibilities
• Professional involvement in state tax organizations and conferences
• Credentials like Certified Sales Tax Specialist (CSS), Chartered Global Management Accountant (CGMA), or JD degree with LLM in Taxation

Also evaluate soft skills like communication and cross-functional collaboration, which are critical for state tax roles that interface with multiple departments. Include case study questions or mock scenarios in your interviews to see state tax problem-solving skills in action.

Offer attractive compensation and benefits

State tax specialists are in high demand, so recruiting top talent requires competitive compensation. Research salary benchmarks and total compensation packages for state tax roles in your industry and location.

In addition to base salary, bonus incentives and equity are increasingly common. Robust benefits like premium health insurance, 401(k) matching, tuition reimbursement, and generous PTO will help you stand out. Many state tax professionals also highly value flexible or remote work options.

Consider unique SALT-specific perks like covering costs for state tax association memberships, conference attendance, and continuing education to sweeten the deal. Offering attractive compensation upfront can help you quickly secure top state tax professionals in a competitive market.

Provide ongoing SALT professional development

Recruiting state tax specialists is just the beginning. To retain them long term, prioritize ongoing professional development and training specific to state tax. Budget for external SALT courses, webcasts, and conferences to keep your team current on ever-changing state tax rules and requirements.

Support pursuit of advanced SALT credentials like Certified Member of the Institute (CMI) from IPT. Provide internal cross-training on state-specific tax issues encountered across your company. Offer clear paths for advancement within your state tax team.

By investing in your state tax professionals' growth and expertise, you'll build a highly skilled team motivated to stay and grow their careers with your company.

Keys to effective state tax recruiting

To recap, here are the keys to effectively recruit state tax specialists:

1. Define the SALT role and required skills
2. Recruit from specialist job boards, associations, recruiters, and referrals
3. Vet candidates' multi-state tax experience and industry expertise
4. Offer competitive compensation and state tax-specific benefits
5. Provide ongoing professional development in SALT
6. Leverage state tax technology partners like Instead

By following these strategies, you'll build a highly effective state tax team equipped to optimize your tax profile across all 50 states. The investment in specialized state tax talent will pay off in reduced risk, minimized liabilities, and a healthier bottom line over the long run.

Building state tax expertise in your advisory practice

Recruiting and retaining specialized state tax talent requires deliberate strategy, competitive compensation, and ongoing professional development. As businesses expand across state lines, the demand for expert guidance on complex and constantly evolving state tax regulations continues to grow, creating both challenges and opportunities for tax advisory firms.

Whether your practice focuses on building an in-house team of SALT specialists or developing strategic partnerships with other experts, the investment in specialized state tax knowledge delivers tremendous value to your clients. By offering this expertise, you help businesses navigate the intricate web of multi-state compliance requirements, minimize tax liabilities, and avoid costly penalties across jurisdictions.

For tax professionals looking to enhance their state tax advisory capabilities without recruiting a full team of specialists, the Instead Pro partner program offers a compelling solution. The program equips advisors with comprehensive state-specific tax strategies, technology tools for multi-state compliance management, and ongoing support from dedicated experts. Tax advisors in the program gain access to powerful resources that help their clients determine nexus profiles, manage sales tax obligations, optimize income tax apportionment, and identify valuable state tax credits—all while growing their practice through expanded advisory services. Elevate your state tax advisory services and discover how partnering with Instead Pro can transform your ability to deliver specialized state tax guidance while increasing revenue opportunities for your firm.