Interstate Tax Services

What Interstate Tax Services does

Interstate Tax Service, Inc. (ITS) is a Pennsylvania-based, family-owned consulting firm founded in 1943 by Paul C. Moomaw, who as chairman of the PA House Labor and Industry Committee helped draft the state's Unemployment Compensation (UC) Law. The firm provides specialized unemployment compensation consulting services to employers, including claim analysis and recording, monthly audit of UC charges and credits, eligibility appeals, hearing representation before the Department of Labor & Industry, UC contribution rate analysis and appeals, merger and acquisition tax-rate review, relief-from-charge filings, fraud reporting, and educational seminars. ITS operates on a subscription-style recurring consulting fee model, billed per the scope of UC management provided to each employer, and does not publicly disclose pricing.

ITS represents approximately 1,900 clients across three primary segments: private industry employers (the core), non-profit organizations (including healthcare providers), and municipal sub-divisions. Distribution is direct and consultative — primarily through sales-driven engagement by the executive team, free consultations, and referral partnerships with Pennsylvania professional associations such as the PA Chamber, PSBA, PASBO, PASPA, and PSATS. The firm delivers services remotely via phone, email, and online forms, and in-person at UC hearings. ITS is explicitly a professional services firm rather than a technology company: there are no software products, no apps, and no AI-driven automation of its core audit and hearing-preparation workflow.

The company's competitive position rests on regulatory authorship, multi-generational expertise in PA UC law, and embedded relationships with employer HR and payroll teams that treat ITS as an extension of their internal HR function. The firm remains privately held under four generations of family ownership, with no disclosed outside capital, no parent company, and no recent M&A activity. Geographic reach has expanded from a Pennsylvania base to multi-state employer representation across the United States.

Name

Interstate Tax Services

Legal name

Interstate Tax Service, Inc.

Website

https://interstatetaxserviceinc.com

Company type

Private

Founded year

1943

Operating status

Operating

Headcount range

1–10 employees

Short description

Interstate Tax Services is a family-owned, Pennsylvania-based consulting firm founded in 1943 that provides specialized unemployment compensation claim management, hearing representation, and tax-rate advisory services to approximately 1,900 employer clients across private industry, non-profits, and municipalities in the United States.

Ownership category

akta.pro rank

Product category

Unemployment Compensation Consulting

NAICS

Accounting, Tax Preparation, Bookkeeping, and Payroll Services (54121)

SIC

Services-Engineering, Accounting, Research, Management (8700)

akta.pro primary industry

Payroll & Employment Tax Services (BPAHABAD)

Keywords

• Unemployment compensation consulting
• UC claim management
• UC tax rate optimization
• Employer UC advisory
• Unemployment hearing representation

Headquarters

HQ city

Mechanicsburg

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. UC Consulting Services: ITS generates revenue through specialized unemployment compensation consulting fees. The company states that its fee structure is 'simple and straightforward,' with many clients considering their fee a 'profitable investment rather than a cost item.' Services are billed based on the scope of UC management provided to each employer client.

Go-to-market motion1 record

Distribution channels3 records

Marketing channels3 records

Core offering

Interstate Tax Service provides specialized unemployment compensation (UC) consulting services to employer organizations across the U.S. Its offerings include UC claim management and auditing, liaison with state Departments of Labor, filing of eligibility appeals, representation at UC hearings (predetermination interviews, referee hearings, Board of Review hearings), UC tax/contribution rate analysis and appeals, relief-from-charge and solvency fee analysis, merger and acquisition UC reviews, fraud reporting, and educational seminars/training for employer HR and payroll staff.

Product overview

Interstate Tax Service is a consulting services company, not a software product company. It offers a unified portfolio of unemployment compensation (UC) consulting services for employers, including claim representation and appeals, monthly audit of charges and credits, UC tax rate analysis, hearing representation, fraud reporting, training seminars, and annual reporting. The core offering consists of specialized UC consulting and advisory services delivered by expert staff, with no software products, platforms, or modules — just professional services spanning liaison with government agencies, compliance support, claims management, and employer education.

Differentiator

Problem solved

Functional benefit

Products and services

• Unemployment Compensation Consulting Services Comprehensive unemployment compensation consulting engagement for employer organizations, covering claim management, auditing, compliance, hearing representation, appeals, UC tax rate optimization, M&A UC reviews, relief-from-charge/solvency fee analysis, fraud reporting, and HR/payroll staff training.
• UC Fraud Reporting Services Standalone assistance for employers to report fraudulent UC claims and ensure resulting charges are credited back, handled directly by Vice President Dominic D'Agostino.
• Training Services Educational seminars for employer HR and payroll staff covering UC claim processing and quarterly UC payment procedures, delivered remotely via Zoom/Teams.

Quantifiable outcome

• Clients achieve among the lowest UC costs possible through proper claim management and rate optimization
• +1 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Five partnerships are on record, tiered core.

• PA Chamber (Pennsylvania Chamber of Commerce)coreGTM or Marketing PartnerITS partners with the Pennsylvania Chamber of Commerce, a major business advocacy organization, suggesting mutual referral and marketing collaboration to serve Pennsylvania employers.
• PSBA (Pennsylvania School Boards Association)coreGTM or Marketing PartnerITS maintains a partnership with the Pennsylvania School Boards Association, indicating specialized services for school district employers regarding UC matters.
• PASBO (Pennsylvania Association of School Business Officials)coreGTM or Marketing PartnerITS partners with PASBO, serving school business officials who manage UC tax accounts and compliance for school districts.
• PASPA (Pennsylvania Association of School Personnel Administrators)coreGTM or Marketing PartnerITS partners with PASPA, serving school HR and personnel administrators who handle unemployment compensation matters.
• PSATS (Pennsylvania State Association of Township Supervisors)coreGTM or Marketing PartnerITS partners with PSATS to serve township supervisors and municipal governments with UC consulting needs.

Scale indicators3 records

Recent moves6 records

Expansion highlights5 records

Emerging players

• Gusto: Gusto is a fast-growing SMB payroll, benefits, and HR platform that includes tax services. As an emerging player expanding into HR advisory workflows, it represents the modern digital-first payroll/HR stack competing against traditional consulting-led providers like ITS.
• Trusaic: Trusaic is a tech-enabled provider of unemployment tax management and pay equity solutions for employers. It represents the emerging technology-driven approach to UC cost optimization that competes with traditional consulting firms like ITS on employer tax rate analysis and compliance.

Broad incumbents

• Workday: Workday is an enterprise cloud platform for HR, payroll, and workforce management. As enterprise HR suites absorb tax and compliance functions, Workday represents the structural direction of the HR/payroll market that ITS's manual specialized services must contend with at the high end of the employer market.
• Equifax Workforce Solutions (formerly TALX): Equifax Workforce Solutions (acquired from TALX) provides unemployment cost management, tax services, and employment verification to large employers. It is the closest broad incumbent competitor to ITS in dedicated UC tax management and claims services at enterprise scale.
• Paychex: Paychex is a major payroll and HR solutions provider serving SMB and mid-market employers with tax filing, payroll processing, and HR services. It is a broad incumbent whose payroll/tax service suite competes for the same employer wallet ITS targets through HR outsourcing decisions.
• ADP (Unemployment Cost Management): ADP offers unemployment claims management and tax services as part of its broader payroll/HR suite. It is a broad incumbent serving employers nationwide with overlapping UC claim administration, though specialized UC consulting and hearing representation is not its core focus.
• OneDigital: OneDigital is an insurance and HR consulting brokerage offering employer-side HR advisory, payroll, and benefits services. While not a UC consulting pure-play, it competes for HR and payroll outsourced services that overlap with ITS's relationship-based employer consulting model.

Others

• Thomson Reuters (Tax & Compliance): Thomson Reuters provides tax, payroll, and regulatory compliance software and services used by employers and tax professionals. It serves as adjacent enabling technology and content infrastructure for the broader employment tax and regulatory compliance market in which ITS operates.

Direct peers

• UniTax (Unemployment Tax Services): UniTax is a regional UC tax services firm serving employers with unemployment cost management, claims administration, and consulting. It is a direct niche competitor to ITS in the dedicated employer-side UC consulting category, with similar consulting-led business model.
• Employers' Council: Employers' Council is a non-profit employer association providing HR consulting, training, and compliance support including unemployment claims assistance to member employers. Similar direct consulting model focused on employer-side HR and compliance services, comparable in mission though broader in scope.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Interstate Tax Services