Keeping clients informed of new or expanded Federal tax programs is very important to us. We've identified a tax credit that your business immediately qualifies for.
This program falls under the Worker's Opportunity Tax Credit (WOTC), and is a Federal tax credit available to all employers who hire and retain qualified individuals. Employers currently claim about $1 billion in credits each year under the WOTC program. The average credit per qualified employee is $2,400 and can be as much as $9,600.
Some of our clients are familiar with the WOTC program and it's benefits but have not taken advantage of it due to it's historically difficult qualification process. We've eliminated all difficulties of this process with the creation of our exclusive Client Portal. We've provided you an easy way to pre qualify and capture your tax credits.
If you're wondering "if" you qualify, the answer is ANY business that hires employees qualifies.
While that program is still available and can be the bridge that keeps your business alive there are two new tax credits available through the CARES Act that you can take advantage of right now.
The Employee Retention Tax Credit is considered one of our Hiring Incentives and the most current version was signed into law as a result of the COVID-19 crisis with the CARES Act in 2020. However, there is a previous version of the Employee Retention Tax Credit that focuses on Disaster Relief. For purposes of clarifying the differences between the two we call the current version COVID ERC or C-ERC and the previous version Disaster ERC or D-ERC.
C-ERC is a 50% tax credit for the first $10,000 of earnings paid after March 12, 2020 and before January 1, 2021 per eligible employee. This amount can include the employer portion of health benefits. Basically, for every eligible employee who earned $10,000 or more during this time period would provide the employer with a $5,000 tax credit.
D-ERC is a 40% tax credit for up to $6,000 of earnings paid to each eligible employee (making the maximum credit $2,400 per eligible employee).
If you have any questions or would like to learn more about WOTC or ERC, please feel free to contact us and we will respond immediately.
To get started to see what you qualify for Click Here.
by Carol Dewey