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FAQ’s

What are employer tax credits?

Employer tax credits, also known as work tax credits or job tax credits, are credits that the federal and state governments give to companies that hire and retain certain disadvantaged individuals. These individuals are typically on public assistance.

 

How do I know if any of my employees qualify?

Unless each of your employees is completing a basic questionnaire, you’ll never know. Employer Incentive screens all employees by asking each new hire to complete two simple forms. Many companies are surprised at how many employees qualify for one of many different work tax credit programs. Some even qualify for multiple programs.

 

Why does the government give tax credits for hiring?

It costs the government $25,000-$30,000 per year to keep someone on public assistance. Providing businesses with tax credits for hiring reduces the welfare rolls, adds money to the overall fund by employees paying withholding and FICA taxes, and increases the employment rate

 

What type of tax incentives can Employer Incentives secure for me?

1. Tax credits to reduce your tax liability.

2. Wage subsidies to reimburse you for qualified wages.

3. Training grants to help bring your new employees up to speed.

 

How can I qualify for work tax credits?

Employers don’t qualify: employees do. Employer Incentives will help you obtain tax credits for hiring qualified individuals. We will submit the necessary paperwork to the applicable taxing authority. Once the individual’s certification has been received, you as the employer earn job tax credits.

 

How do job tax credits affect my bottom line?

Job tax credits provide you with a reduction in your federal tax liability and a dollar for dollar increase to your bottom line. If you are making a profit and paying federal and/or state income taxes, you can reduce your quarterly tax deposits by the amount of the credit.

As an example, assume that your taxable income is $100,000. With normal tax rates, you would pay $34,000 in taxes and keep $66,000. If you have $18,000 in work tax credits, you reduce the tax liability of your company from $34,000 to $16,000, retaining $84,000. That is an increase in your profits and cash of $18,000! If you are a public company, this goes directly toward your shareholder value, increasing earnings per share and market value. You can keep this money in the company or fund other hiring or training programs to improve productivity.

 

What amount of workers tax credit am I likely to get?

On average, 10% of your new hires will qualify for a minimum of $1,500 each in workers tax credits  If you have 600 employees and your turnover rate is 30% (including replacements and growth positions) then you will have, on average, 180 new hires each year. Of the 180, 10% of them, or 18 employees, will be eligible for workers tax credits. Each eligible employee will average $1,500 in workers tax credits, so your savings for the first year will be $27,000.00. These workers tax credits continue as you continue to hire new people.

Click here for our free tax credit calculator.

 

I’m an S-Corp (or partnership or LLC or LLP). Can I get tax credits for hiring?

Yes, they simply pass to your individual return to reduce your individual federal tax burden. This also applies to LLCs and LLPs.

 

I’m in all 50 states. What can Employer Incentives do for me?

We have clients in all 50 states and we can file with each state agency on your behalf to maximize your work tax credits. Employer Incentives has developed strong relationships with all state administrators and knows exactly what documentation is required to support certification.

 

I’m really busy. How will this affect the running of my business?

All we need to start saving you money is to have each new hire sign two additional forms and send them to us. This only takes a few minutes with each new applicant/new hire.

What do I do when tax time comes around?

We make filing taxes simple by generating the required tax forms to support the amount you’ve received in work tax credits and tax incentives.

 

How much will it cost me?

We charge a percentage of the money we find based on the level and complexity of the services provided. There is no charge unless we can identify and deliver bookable job tax credits for our clients. Fees are billed on a quarterly or monthly basis as job tax credits are identified and earned.

 

What are my obligations and/or commitments to Employer Incentives?

You will need to sign a very specific power of attorney so Employer Incentives can represent you as agent for two specific tax forms, which we file on your behalf. In addition, a general agreement needs to be signed which outlines the terms. This agreement is cancelable anytime.

 

It sounds too good to be true. Is there a catch?

There is no catch. Fully 15% of U.S. companies are saving significant taxes by screening their employees. These are programs that were created by federal and state governments to help the “difficult to employ” find employment and get off the welfare rolls, thereby saving the government considerable amounts of money. Employer Incentives provides an easy solution to companies who want to improve their profits by taking advantage of this little known opportunity.

 

OK, sounds good. How do I get started?

Call us at(888) 236-7339. We will get you started in identifying eligible employees immediately. Or, you can, email us at This email address is being protected from spambots. You need JavaScript enabled to view it. and one of our representatives will get in touch with you.

 

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We do all the work, you get all the credits!

Call Employer Incentives at (888) 236-7339.