Incentives for employers normally take the form of Hiring Tax Credits and are offered at the local, state and federal level. New programs are proposed by legislators nearly every week. Our specialists in the field monitor new programs daily to be ensure our clients are are benefiting from every opportunity to earn hiring tax credits.
Since the 2008 recession the federal government has expanded exponentially the number of categories that qualify a new hire for tax credits. Traditionally targeted at Veterans, qualifying characteristics now include such things as where an employee lives or caring for a disabled parent. However, the programs are many, the rules are complex and the paperwork required to file for the credits remains cumbersome, so many companies do not bother to file for the credits.
What type of incentives are available?
The primary incentive program is the Work Opportunity Tax Credit (WOTC) which allows businesses to take a credit equal to 40% of the first $6,000 of wages paid to new hires within eight targeted groups. These groups include members of families receiving benefits under the Temporary Assistance to Needy Families (TANF) program, ex-felons, designated community residents, vocational rehabilitation referrals, summer youth employees, food and nutrition recipients, SSI recipients, and long-term family assistance recipients. Incentives can also be based on geography, where a company is located or the employee lives. To qualify, the new hire does not need to be an addition to staff but can be a replacement due to turnover. Full and part time as well as temporary or permanent employees may qualify.
How does it work?
We never interfere with your hiring practices. During the interview process, each applicant is directed to answer a questionnaire, either on paper, by Smart Phone App or by calling our toll free phone number and responding orally to our questions. Hispanic App versions and phone operators are available for this part of the process. Based on the answers, we determine which of the hundreds of job incentive programs they qualify for and let the employer know in time for the credit to be considered in the hiring process. We then complete all the paperwork needed and file the claim for the incentives.
How much can I save?
Our experience shows that 10%-25% of new hires qualify for some type of incentive. Credits range from $2500 to $9,000 per qualified employee.
How much does it cost?
We charge 15% of any benefit we find. This compares with 30% to 35% for many of our competitors. To keep our fees low, we have automated the process and so charge a small monthly software fee based on the number of employees hired annually. Our program has no long term commitments and can be cancelled at any time. Also, there is a limited investment of time on the part of the client.
How do I get started?
We provide a no obligation consultation to help quantify the potential savings for our clients. We can have you up and running within days. We then work with the HR department to establish procedures and begin finding rewards for what they are already doing...hiring new employees. Keep in mind, filings must take place within days of the employee’s start date and once unclaimed they are lost forever. Give it a try and don’t miss out on any credits you have earned.
For a free evaluation of your benefits under this program, call or send me an email.
To Request Information,Contact Us or call Cherelyn Riesmeyer at 800-598-5587.
Regional Supermarket Chain
We operate grocery stores in 63 locations with 15,000 employees and high annual turnover. About 7% of our new hires have been eligible for Hiring Incentives which were part of a government stimulus package. As a result of your efforts we realized a tax savings of $924,000 last year. Thank-you!