Reduce Corporate Tax Liability
Business Solutions is enhancing the PEO offerings with additional programs that will increase efficiencies and drastically impact the bottom-line of our clients. Through Business Solutions you will have access to a program that will identify the employees who qualify for a government tax incentive program. The Work Opportunity Tax Credit program is a federal tax credit offered to private-sector employers who hire individuals in now 13 target groups that historically have faced significant employment barriers. Any private U.S. employer that pays taxes is eligible for the WOTC program, and employers can receive credits ranging from $1,200 up to $9,600, per qualified hire.
Hourly workforces — like those in foodservice, C-Store, retail and hospitality businesses — are typically more likely to employ individuals who qualify for tax credits. WOTC target groups include food stamp recipients, residents of designated communities (Empowerment Zones, Renewal Communities, etc.), ex-felons, summer youth hires, veterans, and now through the WOTC extension addition, long-term unemployed individuals. In fact, industry studies cite 58 percent of WOTC-eligible employees work in the service industry; the National Restaurant Association found more than one out of every four people in the restaurant industry qualify for WOTC incentives.
Despite these numbers, TaxBreak — an industry leader in tax credit processing — reports 80 percent of eligible employers don’t file for available credits. Hourly-based organizations not only stand to earn thousands for the individuals they are already hiring through this WOTC extension, but they can also can help employ people who have historically faced difficulty finding work.
Using this program can essentially turn payroll into a profit center for your company!