Every business can benefit from hiring based tax credits. Here is something that you may not know …
Did you know that you have an opportunity to get an additional refund? Studies show that up to 60% of businesses did not take advantage of the Federal 2010 payroll tax credit called the HIRE Act. Employees that were hired between February 1, 2010, and January 1, 2011 and were unemployed for 60 days prior to hire can qualify for a refund of 6.2% of the employee wage for 2010. The deadline for this refund is January 10th, 2014 in order to receive the refund check. (HIRE Act Example: General contractor hired 32 qualified employees in 2010. They receive a refund for over $94,000.00.)
You are probably aware of Enterprise Zone HR Tax Credits for clients within California. However, recent legislation changed the existing statutes making it more difficult for businesses to take advantage of this program. The changes include changing the “look back” ability to limit businesses to review only 12 months from the employee’s date of hire. Some of the categories for eligibility are being amended as well to create additional hurdles for you. California Enterprise Zone ends December 31, 2013.
Businesses should also keep in mind the WOTC (Work Opportunity Tax Credit) program. Recent legislation expanded the qualifiers for this program to make it much more accessible. This program is very time sensitive. EDD requires new employee paperwork be submitted to them in less than 28 days from each employee’s respective date of hire. Businesses can receive up to $9,600 per qualified employee.
These are just a few instances of hiring based tax credits.