WHAT ARE TAX
CREDITS FOR HIRING?
One
of the most commonly overlooked ways to
bring profitability into your business comes from accessing the
Work
Opportunity Tax Credit (WOTC).
Many of the companies we talk with are, at best, only vaguely aware of
these. In
many cases they gave up on the program due to it being too difficult to
administer.
SPECIAL NOTE: Due to changes in the WOTC
program made in 2008 and 2009, the IRS Form 8850 and ETA 9061 are
undergoing rewrites and are expected to be released in June/July 2009.
To insure 100% compliance with the WOTC program, you must use the most
current forms available.
These
credits are easy to access when you have the help of a National
Policy expert at R.
Jeffrey & Associates (RJA). These credits are potentially very
significant if you are a company that fits the profile we have
identified below (and many do!).
We do 95% of the work to get it for you. It is totally risk free
and we provide training and follow up
reminders free of charge.
WHY ARE THERE
TAX CREDITS FOR HIRING?
The Federal Government uses this Tax
Credit to encourage employers to hire from the following eleven targeted
groups listed below. These programs help people move from being on the tax dole to being
on the tax role. The
government designed these programs to help people move closer to self
sufficiency.
WHO ARE THESE
TARGETED GROUPS?
- Qualified
(SNAP) Supplemental Nutrition Assistance Program (formerly Food Stamp) recipients ages 18 through
39
- Qualified
recipients of Aid to Families with Dependent Children (AFDC)
-
Designated Community
Residents ages 18 through 39 who reside in a Federally designated Empowerment Zone,
Renewal Community or Rural Renewal County
- Qualified
summer youth ages 16 through 17 who reside in a Federally designated
Empowerment Zone, Renewal Community or Rural Renewal County
- Qualified,
economically disadvantaged ex-felons hired no later than one year
after conviction or release from prison
- Qualified
recipients of Supplemental Security Income (SSI)
- Qualified
veterans receiving (SNAP) Supplemental Nutrition Assistance Program
benefits (formerly food stamps)
- Vocational
rehabilitation referrals
-
Veterans with disabilities
- Unemployed Veterans (2009 and 2010
only)
- Disconnected Youth (2009 and 2010
only)
WHAT IS THE
PROFILE OF A COMPANY THAT BENEFITS FROM WOTC/WTW?
Our research shows that business like
the type we list below are most successful in obtaining these credits.
- Fast
Food Franchises
- Temporary
Staffing Services
- Hospitals
and Nursing Homes
- Manufacturing
Plants
- Restaurants
and Hotels
- Telemarketing
Firms
- Janitorial
Staffing
- Located
in or near Empowerment Zone/Renewal Community
- High
turnover environments
- Hire
a high percentage of people at or near minimum wage
- Have
a high percentage of people on public aid or welfare
Of course, there
are other companies who also profile very well for these credits. We
will be happy to speak with you to let you know in only a few minutes if
your company will benefit, and if so, how much.
HOW MUCH OF A
CREDIT IS IT?
Under the WOTC
program, up to $2,400, which is 40% of the first $6,000
of income.
Under the WTW
program, up to $8,500, which is 35% of the first
$10,000 of income in year one, and 50% of the first $10,000 of income in
year two.
HOW MUCH WOULD
MY COMPANY GET?
If you resemble the profile above and if you hire 100 people a year on
average you can estimate a range of your yearly WTW
and WOTC tax credits as follows:
|
Scenario #1
(possible best case) 10
(10%) are WOTC
or WTW
certified and earn at least $4,000 in their first year
10
x $4,000 x .40 = $16,000 tax credit per
year
|
| Scenario
#2 (more conservative estimate)
6
(6%) are WOTC
or WTW
certified and earn $3,000 in their first year
6
x $3,000 x .40 = $7,200 tax credit per
year
|
HOW YOU GET
THESE CREDITS
Our unique system provides you the
turnkey elements to success - free training (and retraining as needed)
and automatic quality control for all forms you submit. After you make
the decision to recover the WOTC and WTW
Tax Credits you deserve, we can have you up and running within 5
business days.
WHAT
WE DO
After we agree that WOTC
and WTW credits are worth pursuing, we arrange a
30 minute training session with your designated representative(s). Our
processing methodology insures that all employee forms (IRS form 8850)
are free from errors.
Once your employee is certified, a limited payroll download to R.
Jeffrey & Associates is the last thing that you do. From there we
generate all necessary reports. Your tax department can count on us to
provide you with all reporting and documentation necessary in order to
substantiate the WOTC and WTW
credits.
HOW YOUR COMPANY CAN GET INTO
ACTION
The first step is to make the decision
to speak with R. Jeffrey & Associates about your situation. Our
phone number is 847/253-7300. After a brief discussion you will know if this is right
for your company and you will have an estimate of yearly tax dollar
savings. If you would like to start a dialogue directly with us
via the Internet, please take a minute to complete our online
survey that will save you valuable time when discussing our
services.
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