Tax Season . . . Ugh. It is a stressful time of year for many business owners, but this year is different for a great reason – the Work Opportunity Tax Credit (WOTC).
We are here to put a smile on your face for Tax Day. DecisionHR (in conjunction with our partner Centivise) can assist you with a noticeable tax break by saving thousands in tax incentives. It is estimated that 1 in 5 employees you hired in the last year could be eligible to generate between $1,200 – $9,600 in cash savings!
No Start Up Cost + No Hidden Fees + % to be captured for you =
The WOTC is a federal income tax incentive program designed to assist nine target groups in securing employment by offering employers a reduced tax rate. It joins other tax credits, education, and workforce training programs that help workers with barriers to employment prepare for good jobs.
Tax credits are a dollar for dollar tax deduction granted from cities, counties, states and federal government as an incentive to attract business to a particular group or market. Tax credits are different than tax deductions because they lower the full amount of what’s owed rather than reducing the debt by a percentage.
So, for example, if your business owes $20,000 in taxes, but you have $18,000 in tax credits from the WOTC, then your business would only owe the $2,000 in taxes. The following employee types are eligible:
- Qualified recipients of temporary assistance to needy families
- Qualified veterans receiving food stamps or qualified veterans with a service connected disability
- Ex-felons hired within one year after conviction or release from prison
- Designated community resident – an individual between age of 18-40 on the hiring date residing in empowerment zone, renewal community or rural renewal county
- Vocational rehabilitation referrals
- Qualified summer youth ages 18-39 who reside in empowerment zone
- Qualified food stamp recipients ages 18 but not 40 on the hiring date
- Qualified recipients of supplemental security income (SSI)
- Long-term family assistance recipients
You still have time to take advantage of this program since the IRS has lifted the 28-day submission deadline for all employees hired in 2015. This means that you have a short window to screen all of your employees hired during this period and submit through May 2016.
DecisionHR can handle the whole process for you. We have streamlined the process where you can potentially realize a huge tax savings for a minimal fee (based on the amount received). We do the work; you reap the rewards.
Don’t leave money on the table. Let DecisionHR provide you a second chance to save thousands – contact us today!