Job Tax Credits
Federal and State!
The government currently provides Federal and State tax credits to employers who hire and retain individuals who are members of specific target groups. We have partnered with HR Screening Services to provide you with assistance in securing job tax credits.
Through programs such Work Opportunity Tax Credit (WOTC) and Empowerment Zones, HR Screening has been able to secure tax credits for their clients. HR Screening provides and handles all of the paperwork through their state of the art web based system or paper based system. They handle all the research, submissions and government red tape on your company’s behalf.
The tax credit is simply a dollar-for-dollar reduction of taxes owed. Tax credits can be used by all for-profit companies.
There is no fee or charge for this service unless HR Screening Services makes money for you by securing certified tax credits or incentives from the state!! You have nothing to lose and only tax credits to gain by starting this practice.
The process to take advantage of this program is easy. As each employee is hired they fill out a government form 8850 that needs to be submitted to HR Screening Services for review.
Work Opportunity Tax Credit
The WOTC program is a government initiative designed to encourage employers to hire individuals from five specific target groups. The Employer may receive a federal income tax credit up to $2,400 per certified employee that reduces its federal income tax liability.
- Credit is based upon a percentage of the eligible employees’ wages.
- Employee must work at least 120 hours for Employer to receive credit.
- WOTC encourages employers to hire from specific targeted groups.
- Maximum WOTC is generally $2,400 per employee (40% of the first $6,000) over the first year of employment.
- Employee must complete IRS Form 8850 on or before starting the job.
- Form 8850 must be postmarked within 28 days of start date and sent to the state Department of Labor for certification.
Empowerment Zones and Renewal Communities
An Empowerment Zone is an economically distressed urban or rural area. The credit is available to employers that hire employees that live and work in a federally designated Empowerment Zone or Renewal Community. There are 87 zones in 34 states.
Status of Tax Credit Programs
The legislative authority for the WOTC program, which had expired on December 31, 2013, has been extended. President Obama signed the tax extension bill (the Act) on December 19, 2014. The current Act extends the WOTC program through December 31, 2014, and retroactively reauthorizes the program for new employees hired on or after January 1, 2014. At this time, the Department of Labor is working with the Internal Revenue Service (IRS) to issue reauthorization guidance to the state workforce agencies and the employer community. Employers should continue to submit WOTC applications to state workforce agencies within 28 calendar days after the new hire's start date. Similar to the 2014 hiatus period, and specifically in the 2015 hiatus period, states can accept applications for new employees in the WOTC target groups hired on or after January 1, 2015, but must postpone final processing of those certification requests pending further Congressional legislative action. .