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.
Unless each of your employees is completing a basic questionnaire, you’ll never know.
EmployerIncentives 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.
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.
1. Tax credits to reduce your tax liability.
2. Wage subsidies to reimburse you for qualified wages.
Every employer who hires qualified individuals can receive (qualifies for) the Work Opportunity Tax Credit (WOTC). Once the individual’s certification has been received, you as the employer earn Work Opportunity Tax Credits.
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.
There’s a lot to unpack here. The amount of tax credit that you’re likely to get is too specific per company to estimate. A good starting point is $1500 per qualifying new hire, but it really depends on the type of credit (WOTC or State/Local, for example) and other factors (geography, rate of hire, length of employment, etc.) as well as other potential credits or subsidies that you could take advantage of first, it’s just to hard to know without knowing more about each company we work with. Click here for a no-commitment, free consultation.
Yes, non-profit companies that hire unemployed veterans can get a reduction in the employer portion of FICA taxes. As much as 26% of the first $14,400.00 you pay a qualified employee.
Yes, they simply pass to your individual return to reduce your individual federal tax burden.
We have clients in all 50 states and we can file with each state agency on your behalf to maximize your work tax credits. EmployerIncentives.com has developed strong relationships with all state administrators and knows exactly what documentation is required to support certification.
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 as tax credits are identified and earned.
When you are ready to file your tax returns and claim all of the credits you have earned in the tax year, we will provide you with all of the forms, reports, and supporting documentation you will need for your returns.
All we need to start saving you money is to have each new hire fill out and sign two additional forms and then you submit them to us. This only takes a few minutes. We accept submissions via online upload, fax, or US Mail. We can also set up the forms to be filled out and signed online via email or text message link if you choose.
You will need to sign a very specific power of attorney so EmployerIncentives 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 any time.
There is no catch. Less than 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 employees with barriers to employment find work and get off the welfare rolls, thereby saving the government considerable amounts of money. EmployerIncentives.com provides an easy solution to companies who want to improve their profits by taking advantage of this little known opportunity.