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Call Us: (866) 484-9529

Tax filing

Don’t Miss This Last Chance to Earn 2015 Tax Credits

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The Federal Government recently announced their renewal of the Work Opportunity Tax Credit Program. (WOTC) for 2015 through 2019 and that is really great news!

The WOTC program experienced some challenges in 2015 stemming from the late December renewal.  Although the renewal was retroactive, it created a hardship for employers seeking to take advantage of these lucrative tax credits.

Due to the challenges last year, many people chose not to participate and apply for 2015 tax credits.

The most exciting news is that the IRS recently issued notice 2016-40. This notice makes 2 very important allowances you need to know about.

  1. You now have an opportunity to go back and get your Work Opportunity Tax Credits (WOTC) by submitting ALL employees you hired between January 1, 2015 and May 31, 2016!
  2. A new target segment has been added to the types of employees you can submit for tax credit. The new group is Long Term Unemployed and is available to all employees hired anytime in 2016.

 

With this provision ANY employer can currently submit all of their 2015 new hires for credit qualification!

This is a nearly unprecedented move by the IRS.  Since the inception of WOTC in 1996, this is only the second time such an extension has been made available by the IRS.

RIGHT NOW is the absolute perfect time to get started and receive retroactive credits for all 2015 and 2016 new hires!  This is the ideal scenario for all of you that were heavily considering WOTC last year but held off because of the pending renewal.

There’s only one catch! We Must get all of your 2015 new hires submitted ASAP! 
We don’t want you to miss any available Work Opportunity Tax Credits (WOTC) or have them delayed.

The official deadline to submit last year’s employees under this transitional relief provision is June 29, 2016, but we want to get your employees submitted ASAP before all the other companies in your state submit theirs. Procrastinating will increase the risk of missing credits or having your credits delayed by several months because other companies submitted before you. We will handle all the leg work for you, but we need to get started sooner rather than later.

To get an estimate of just how much your 2015 WOTC tax credits are worth, use our calculator HERE or contact us HERE and we’ll help you get started.

Don’t miss this opportunity and over-pay your 2015 taxes!

Are Today’s Youth HR’s Best Kept Secret?

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Progressive companies seem to have cracked the code of hiring teenage help and leveraging those employees as strategic assets. More specifically 16-17 year olds for seasonal help.

It’s true that there is a certain unflattering stigma associated with teenage employees, but it doesn’t mean that you should overlook this segment of the workforce.  In fact, with an intentional plan you can sift through this unique talent pool and hire the best and take advantage of the benefits they can offer your company.

There are more than a few examples of teenagers behaving badly in their workplace scattered across the internet casting a shadow upon both their employer and fellow teen worker.  This shouldn’t be a deterrent but rather an incentive to perfect your hiring process.

So why should you consider hiring more teens?

  • For starters, they have lower wage requirements than longer tenured employees resulting in lower overall payroll. Not to mention they seldom work enough hours to earn OT and often don’t receive the benefits of full time workers.
  • They can help expand your clientele to a segment of the population you may not have previously reached. Teenagers have dozens of retail options to visit after school, but they gravitate to those where their friends work.
  • You can begin relationships with quality individuals that become lifetime employees.  The landslide majority of Chick-fil-A operators started working for the company during summers in high school.
  • The energy they have is both inspiring and infectious. Teenagers can often be labeled as lazy, but more often than not, it’s just boredom.  Given a task and empowered to achieve it, you’ll be surprised at how creative and efficient they can be at problem solving.
  • As a final bonus, the Federal Government offers you a WOTC tax credit for each 16-17 year old hired during the summer.  This could reduce your tax liability by up to $2,400 per teen hired.

These are just a few reasons to include teenagers in your candidate pool; especially for retail, seasonal help.

Progressive companies, like yours, have realized solid return on investment by carefully hiring teenagers. Teens help businesses diversify their workforce, attract young customers and increase your profitability. That means more bottom line, thanks to reduced payroll costs, sales potential and tax incentives.

If you’d like to learn more about how we can help your business improve your hiring and take advantage of the Work Opportunity Tax Credit (WOTC) program click here and we’ll be in touch shortly.

5-year WOTC Extension Announced

Image by Matt Wade

It’s official! The Work Opportunity Tax Credit (WOTC) program has been renewed for five years (2015 – 2019).  Last week, Congress voted to extend the WOTC program as part of the Tax Extenders legislation, and received the President’s official signature of approval on December 19th.

This renewal is especially exciting as it is the first time in it’s history WOTC has received a 5-year renewal which is a testament to it’s success. Secondly, Congress has added a new target segment for Long Term Unemployed Recipients, which can qualify more of your employees and increasing your potential tax credits.
Here is the actual wording from the bill:

The term ‘qualified long-term unemployment recipient’ means any individual who is certified by the designated local agency as being in a period of unemployment which is not less than 27 consecutive weeks, and includes a period in which the individual was receiving unemployment compensation under State or Federal law.

This is precisely what employers have been waiting on all year.  In a nutshell, the program provides participants tax credits up to $2400-9600 for each qualified, new hire brought on board. This renewal is a solid investment in the American dream and provides work opportunities for millions while providing businesses the capital to expand their businesses that will create even more jobs.

It doesn’t take long to figure out that this program can be a great way for companies to invest in their growth by significantly reducing their tax liability. To learn how much your potential tax savings might be, try our tax savings calculator here.

Kentucky Employment Tax Incentives

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Corporations located in Kentucky may not be aware that they have state tax credits available to them in addition to the federal credits offered from WOTC. Hiring an unemployed resident could qualify you for as much as $100 for each eligible individual.

Businesses can qualify if their new hires are certified by the Office of Employment and Training as unemployed for sixty days prior to being hired into full-time employment. Individuals must also be employed full-time for 180 consecutive days during the tax year the credit is claimed. Full-time employment is defined as working 23 hours weekly or more.

The state of Kentucky considers applicants unemployed if they worked less than 23 hours weekly or 100 hours a month during the sixty days immediately prior to employment, and they must have had an employed status prior to the term of unemployed status.

There are a few exclusions to the program to be mindful of. Credits may not be claimed if the employee received federally funded payments for on-the-job training, is a relative of the employer, if the employer is an estate or trust, is a grantor, beneficiary, or fiduciary.

If your business is located in Kentucky, we can assist with educating and helping you obtain these applications and certificates. Just by making a few minor tweaks in your hiring process, you could claim extra tax savings. Give us a call today to learn more about these credits.

WOTC Update for 2014 Taxes

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As most of you are probably already aware, the WOTC program was in hiatus from January until mid-December 2014. Therefore, the WOTC certifications are backlogged and many states are anticipating delays past April 15th. Some areas could see backlogs as late as August.

Given the circumstances, most of you will have a couple options to make the most of your pending certifications.

  1. File your taxes on time and claim a portion of the credits.
  2. Consider filing an extension in order to claim all of your 2014 certificates as a tax credit on 2014 taxes.

We would be happy to answer any questions to help you and your accountant make an informed decision. As always, you may reach us via email or by calling 563-583-2115.

Tax Extension Filing

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As you may be aware, there are several tax programs awaiting congressional renewal. It isn’t uncommon for tax credit programs to lapse, particularly the Work Opportunity Tax Credit. However, currently, the IRS and lobbyists are urging lawmakers to vote on tax bills by the end of November to expedite the process. In the meantime, we suggest that customers file for extensions due to a potential backlog of approved credits, not just through WOTC but other pending bills as well.

Congressional leaders vote on factors aside from just renewing incentives. A few determinants include budget proposals, the length of time to extend incentives and whether to do so permanently or temporarily. Sometimes, leaders may re-write provisions to accommodate these fluctuations. With its’ size, WOTC lapses aren’t unheard of. Throughout its history, the tax incentive has been in hiatus several times since established in 1996.

The IRS has urged lawmakers to vote on tax bills to expedite the process. In the meantime, we suggest that customers file for extensions due to a potential backlog of approved credits, not just through our program but other pending bills as well.

Contact us HERE with any questions about tax credits and filing extensions.

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3500 Dodge St. Suite 302 | Dubuque, IA 52003-5266 | (866) 484-9529