Tax season is upon us, and it’s a great time to remind all small business owners to consider working with your tax consultant throughout the year to make sure you’re getting access to all the tax credits available to you.
At Tax Credit Group, we are frequently asked about the value of tax credits for small businesses. Tax credits can be a valuable tool for small businesses that are looking to increase profitability, gain a competitive advantage, and access new markets and customers. The value of tax credits is dependent on each business’s unique circumstances and tax situation.
Knowing the Benefits
The benefits of tax credits for small businesses are numerous. Tax credits can help small businesses increase their profitability by reducing their tax bill. They can also give small businesses a competitive advantage by allowing them to invest in new technologies and equipment. Tax credits can also be used to attract investment and funding, which can help small businesses grow and expand. Finally, tax credits can help small businesses access new markets and customers by enabling them to offer products and services that are in high demand.
Evaluate the Cost
It is important for small business owners to evaluate whether the credit is worth it for their business based on their specific circumstances and tax situation. For example, while some tax credits may provide significant savings, they may also come with significant costs, such as the cost of preparing the necessary documentation and the time and resources required to apply for the credit. Small business owners should carefully consider the costs and benefits of each credit and consult with a tax professional if they are unsure.
Do Your Research
If you are interested in applying for tax credits, there are several steps you can take. First, research the available credits and determine which ones you may be eligible for. The Internal Revenue Service (IRS) provides information on various tax credits and the process of applying for them. The Small Business Administration (SBA) also provides information on tax credits for small businesses and other financial assistance programs. For example, if your business is involved in renewable energy, you can visit the National Renewable Energy Laboratory (NREL) for information on renewable energy tax credits and other incentives for renewable energy.
Make the Next Steps
Small businesses looking to increase profitability, gain a competitive advantage, and expand into new markets and customers may find tax credits to be a valuable resource. By working with a tax credit consultant, such as Tax Credit Group, small business owners can ensure that they are making the most of their eligibility and maximizing the benefits of these valuable credits.
As a business owner, it’s important to be aware of all the tax incentives that are available to you. One such incentive is the Work Opportunity Tax Credit (WOTC), a federal tax credit for employers that hire individuals from specific groups that have historically faced barriers to employment.
Eligible Employee Groups
Eligible employee groups for WOTC include veterans, individuals receiving public assistance, ex-felons, and several other groups. Hiring from these groups not only promotes diversity and inclusion in the workplace, but it also allows businesses to take advantage of the WOTC tax credit.
Tax Credit Amounts
The tax credit amounts available vary based on the length of time the employee works for the company and the employee’s wages. According to the official IRS website for the WOTC program, businesses can claim up to $9,600 per eligible employee, depending on the employee’s specific target group and the number of hours worked. This can add up to significant savings for businesses, especially those in industries with high turnover or recruitment costs.
Applying for WOTC
One of the benefits of the WOTC program is that it is not limited to certain industries or regions. As stated by the Department of Labor, any for-profit business, tax-exempt organization, or government entity that employs individuals in the United States may be eligible to claim the credit. This means that businesses of all sizes and in all industries can take advantage of the program.
State Specific Credits
In addition to the federal WOTC, many states also offer their own WOTC program, which can provide additional tax savings for businesses.
Tax Credit Group
The Work Opportunity Tax Credit is a valuable incentive for businesses that hire individuals from specific groups that have historically faced barriers to employment. By taking advantage of this tax credit, businesses can not only promote diversity and inclusion in the workplace, but also reduce their tax bill and generate a return on investment. If you want to take advantage of this opportunity and other credits your business may qualify for, don’t hesitate. Contact Tax Credit Group so we can help you navigate the process and maximize your savings.
A few months back we shared with you here, that the Federal Government announced their renewal of the Work Opportunity Tax Credit Program. (WOTC) for 2015 through 2019 and that is really great news!
The renewal also included a temporary Transitional Relief period that allows you to go back and submit all employees you hired between January 1, 2015 and June 29, 2016 for tax credits that had been missed. This was a tremendous opportunity since there were millions of new hires that were not submitted for credit during that time period.
Recently the IRS announced a final extension to the Transitional Relief program and now you have until September 30, 2016 to make sure all your new hires are submitted for tax credits!
Nothing has changed with the program except you have an additional 90 days to submit your employees hired between 1/1/2015 and 9/30/2016 that worked 120 hours.
Although this might seem like a daunting task, we have systems prepared that help us handle the heavy lifting for you.
If you’re wondering if the reward is worth the effort; the companies we help see an average increase of $65,000 in tax credits. (Some as high as $300,000)
There’s only one catch! We Must get all of your 2015 new hires submitted ASAP!
Procrastinating will lead to missed credits or having your credits delayed by several months because of your State’s potential backlog. To find out just how easily we can help you take full advantage of this opportunity, reach out to us here. We will show you how we can handle all the legwork for you, but we need to get started soon because time is running out.
Don’t miss this opportunity and over-pay your 2015/2016 taxes!
Companies often miss hiring amazing employees because of unfounded fears associated with hiring persons with disabilities. Many major corporations have found tremendous success and benefits by hiring from a talent pool that most shy away from. Here we’d like to help ease your fears by proving that most of them are truly myths.
Hiring persons with disabilities is a rewarding experience Businesses shy away from opportunities, fearing commonly held misconceptions. Some of these fears are unfounded and you may be surprised to know that hiring from this population really isn’t as risky as commonly believed.
Fear: lackluster performance compared to other workers.
Fact: Researchers have actually found similar work standards performed among employees, regardless of their abilities. As a matter of fact, companies, such as Walgreen’s, have actually seen better safety records and the same, if not better, production results from persons with disabilities compared to non disabled employees. Other businesses, such as car wash owners, have reported that they actively recruited persons with autism thanks to their meticulous attention to detail and precision when cleaning vehicles. Restaurant franchises, such as Applebee’s and Five Guys Burgers and Fries, have successfully employed persons with disabilities to greet customers, or to oversee the small, yet invaluable details, like cleaning the dining rooms, maintaining supply stocks, and rolling silverware.
Convenience store managers report that workers with disabilities have actually improved productivity among teams. Their work attitudes have boosted morale and their loyalty to cleaning, stocking shelves and maintaining a neat store appearance helps co-workers focus on other duties essential to the workplace.
Fear: Poor attendance and increased turnover
Fact: Walgreen’s experience proves this belief couldn’t be farther from the truth. A study of its distribution centers by the American Society of Safety Engineers found that workers with disabilities had a 48% lower turnover rate than their non-disabled coworkers, 67% lower medical costs and 73% lower costs due to absenteeism. Many employees with disabilities, similarly, look forward to coming to work and exceeding expectations. In turn, business managers have noted higher retention rates among persons with disabilities as well. Managers have reported improved employee morale among staff contributing to overall employee engagement and increased job satisfaction.
Fear: Increased exposure to litigation and liability.
Fact: Although some industries include elevated risks, such as food service, companies like Starbucks, have mitigated workplace hazards by working with local agencies to build low risk tasks tailored to employees’ talents. Statistics show that legal action concerning employers and disabled employees is quite sparse. From 2011-2015, only 200 lawsuits were filed by the EEOC involving persons with disabilities. That averages fifty lawsuits a year, nationwide, or one lawsuit per state annually.
Fear: High supervision demand and increase coworkers’ responsibilities.
Fact: Many local work rehabilitation services offer job coaches for persons in need at no cost to the individual’s employer. The agency support staff train persons in need, thus freeing co-workers to tend to their own responsibilities maintaining a high level of productivity.
Not only are these fears untrue, but employers that have hired persons with disabilities have experienced improved morale and productivity. There are plenty of other benefits to be had, not the least of which is qualifying the employer for lucrative tax credits. The Federal government pays millions of dollars in tax credits each year for businesses who hire specific employees under the Work Opportunity Tax Credit (WOTC) Program.
Tax Credit Group Group administers the Work Opportunity Tax Credit (WOTC), a federal program rewarding businesses who hire persons with disabilities. To learn how to save tax liability for your business, contact us Here or call 563-583-2115.
