What are Employer Tax Credits?
Federal and State governments provide employer tax credits to companies that hire and retain certain disadvantaged individuals who are typically on some form of public assistance. The programs, at the federal level are the Work Opportunity Tax Credit Program (WOTC), the Welfare to Work Program (W2W) and the Empowerment Zone/Enterprise Community/Renewal Community Programs.
How Do Tax Credits Affect My Bottom Line?
Tax credits are a reduction in your federal tax liability and a dollar for dollar increase to your bottom line. For example, say your taxable income is $100,000. Assuming normal tax rates, you would pay $34,000 in taxes and keep $64,000. If you have $18,000 in credits, you would reduce the tax liability to $16,000, retaining $84,000.
What Amount of Credit am I Likely to Get?
On average, 10% of your new hires will qualify for a minimum of $1,500 each in credits. To qualify, employees must complete two forms upon employment.
How Do I Get Started?
Click HERE to start the program and begin realizing tax credits with your next hire, at no additional cost to you. Call us today at 214-442-5888 x 100 with any questions, or to learn more about how this program can help reduce your tax liability. At PayVision Online we help make every aspect of your payroll Worry Free!