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Federal Programs

federal-employer-credits

Federal tax credits, and wage subsidies can save your company thousands of dollars every fiscal year. At Employer Incentives, we will help you:

  • Secure these benefits for your business.
  • Calculate the amount of tax credit/subsidy your company has earned on each individual.
  • Generate the required forms to support the amount of credit you’ve received.

Employer Incentives currently helps businesses secure the following federal tax credits, training grants, and wage subsidies (click on any of the links for more information):

 

 

Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a federal tax credit incentive that Congress provides to private-sector businesses for hiring individuals from nine target groups who have consistently faced significant barriers to employment. The main objective of this program is to enable the targeted employees to gradually move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers, while the participating employers are compensated by being able to reduce their federal income tax liability.

WOTC Tax Credit Target Groups

The Work Opportunity Tax Credit currently applies to the following target groups:

  • Long-term Temporary Assistance for Needy Families (TANF) recipient
  • Unemployed Veterans
  • Veteran whose family is on public assistance
  • 18-39 year-old SNAP (food stamps) recipient
  • 18-39 year-old designated community resident
  • 16-17 year-old summer youth
  • Vocational rehabilitation referral
  • Ex-felon
  • SSI recipient
  • Rural Renewal County Resident

These groups can change as the economy strives to improve employment for targeted individuals.

WOTC Tax Credit Benefit Amounts

The maximum Work Opportunity Tax Credit benefit amounts are determined by the employee’s WOTC target group. The maximum for most WOTC tax credit target groups is $2,400, but one group is eligible to receive substantially more. Hire an unemployed veteran and earn up to $9,600 in tax credits Typically, on average, the WOTC tax credit will be around $1,500 for each eligible employee.

 

 

Empowerment Zones/Enterprise Communities/Renewal Communities

Launched in 1993, the Empowerment Zone and Enterprise Community (EZ/EC) Initiative identified empowerment zones, enterprise communities, and renewal communities across the nation with the goal of creating self-sustaining, long-term development in distressed urban and rural areas. Although the program officially ended on December 31, 2018, employer benefits can be claimed retroactively for as long as a company has been in business or back to 1993, whichever is earlier. Tax credits on qualified individuals can be as high as $3,000 for every year of employment. Credits can be carried back 1 year, or forward 20 years.

 

 

 

 

On-the-Job Training Cash Reimbursement

The Workforce Investment Act (WIA) of 1998 provides for On-the-Job training (OJT) for employers in all states. The program typically requires a job description, a budget, and monthly or weekly reporting of wages and expenses. OJT is designed to assist employers by helping offset the extraordinary cost of training new employees by providing up to 50% of employee training wages.

 

 

Indian Employment Credit

The Indian Tax Credit applies to registered Native American Indians and spouses of registered Native American Indians who live on or near an Indian reservation and who work for an employer on that reservation. Employers are entitled to a tax credit equal to 20% of a qualified employee's wages and health benefits up to a maximum of $4,000 per employee.The program ended in 2017 but is expected to be reauthorized through 2019.

As always, we process all the paperwork and handle all the hassle. You cash in on the rewards!

 

Benefit from federal tax credits and incentives today!

Call EmployerIncentives at (888) 236-7339.

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