tax credits 2013
Post on 25-May-2015
431 Views
Preview:
DESCRIPTION
TRANSCRIPT
TAX INCENTIVES
Presented by the
Center for Accessible Living
People with disabilities lead similar lives to those people without
disabilities.
More than 58 Million people (1 in 5) in the US have a physical, mental or emotional disability. They work,
play and have families like everyone else.
20 million families have at least one (1) member with a disability.
Disability in Context
Source: www.census.gov
Disability in Context
American Sign language is the third most used language in the US.
Disability in Context
Autism is the fastest-growing developmental disability in the US.
Currently with 1 in 150* births.
Currently with 1 in 110* births.
Currently with 1 in 88* births.
Disability can be inherited or acquired as a result of accident, injury or age.
Disability can happen at any time, to anyone!
As diverse as the community we live in – every culture, race, religion,
ethnicity, gender, sexual orientation, socioeconomic class, etc.
Disability in ContextGeneralizations
Disability In Context
Employment rate for
working age people with disabilities was 27% in
January 2013.
Employment rates from US Department of Labor
Disability in Context
Compared to a 69.7% employment rate for non-disabled.
The gap between the employment rate of persons of 16-64 years of age with and without disabilities
was 42.8%, not seasonally adjusted.
Employment rates from US Department of Labor
Disability in Context
People with disabilities continue to represents a
largely untapped
and diverse pool of
qualified job candidates
Disability in Context
In a recent national survey:
92% of consumers surveyed felt more favorable toward
companies that hire individuals with disabilities.
87% said they would prefer to give their business to such
companies.Consumer Percentages from http://www.csde.umb.edu/research/survey.shtml
Disability in Context
58 million people strong, people with disabilities boasts $1 trillion in discretionary spending power.
Income according to the U.S. Department of Labor: www.dol.gov
Shedding some light on Disability & Dispelling myths
Accommodations are usually very expensive…
FALSE! 50.5% of accommodations cost nothing
The average accommodation is reported as being a one time cost of
$500 or less.
Figures from the Job Accommodation Network: http://www.jan.wvu.edu/media/LowCostHighImpact.pdf
All FALS
E
Myths & Facts
People with disabilities are generally out sick more often.
People with disabilities are more likely to have accidents than other
employees.
An employer’s workers’ compensation rates rise when they
hire workers with disabilities.http://oshkoshwdc.com/data/Studies_Related_to_the_Employment_of_Individuals_with_Disabilities.pdf
All TRUE
Myths & Facts
Employees with disabilities have shown to have equal job performance ratings to
nondisabled.
Employees with disabilities add valuable perspectives and diverse
backgrounds to companies and workgroups.
http://oshkoshwdc.com/data/Studies_Related_to_the_Employment_of_Individuals_with_Disabilities.pdf
Tax Credits and Incentives
Employment Credit Work Opportunity Tax Credit
Kentucky Specific Tax Credits
Access Credits and Deductions Disabled Access Credit Barrier Removal Tax Deduction
Tax Credits
Work Opportunity Tax Credit
(WOTC)
Work Opportunity Tax Credit (WOTC)
Provides a tax credit for employers who hire targeted low-income groups
Has been extended to cover individuals who begin to work for an employer before December 31, 2013
Includes former Welfare to Work (WTW) regualtions
Work Opportunity Tax Credit (WOTC)
Who is Eligible:
• Short-term &Long-term Family Assistance Recipient (TANF)
• Qualified SNAP (Food Stamp) Recipient
• Qualified Summer Youth Employee* • Designated Community Residents*
*Residence in a Federal Empowerment Zone (EZ), Enterprise Community (EC), Renewal Community (RC) or Rural Renewal County (RRC) is required
Who is Eligible:
• Vocational Rehabilitation Referral • Qualified Ex-Felon • Supplemental Security Income
Recipient • Qualified Veterans*
Work Opportunity Tax Credit (WOTC)
*Amounts and other qualifications are different for Veteran Populations.
Long-term Temporary Assistance for Needy Families (TANF) Recipient
A member of a family that meets one of the following circumstances:
Received TANF benefits for at least 18 consecutive months ending on the hiring date.
Received TANF benefits for at least 18 consecutive or non-consecutive months after August 5, 1997, and has a hiring date that is not more than 2 years after the end of the earliest 18-month period after August 5, 1997.
Stopped being eligible for TANF payments during the past 2 years because a Federal or state law limited the maximum time those payments could be made.
Work Opportunity Tax Credit (WOTC)
Short-term (TANF) Recipient
A member of a family that received TANF benefits for any 9-month period during the 18-month period ending on the hiring date.
Work Opportunity Tax Credit (WOTC)
SNAP (food stamp) Recipient
An 18-39 year old member of a family that received Supplemental Nutrition Assistance Program (SNAP) benefits for the 6 months ending of the hiring date or received SNAP benefits for at least 3 of the 5 months ending on the hiring date.
Designated Community Resident
An 18-39 year old who lives within one of the federally designated Rural Renewal Counties or Empowerment Zones.
Work Opportunity Tax Credit (WOTC)
Vocational Rehabilitation Referral
An individual with a disability who completed or is completing rehabilitative services from a state-certified agency, an Employment Network under the Ticket to Work program, or the U.S. Department of Veteran Affairs.
Ex-Felons
An individual who has been convicted of a felony and has a hiring date that is not more than 1 year after the conviction or release from prison.
Work Opportunity Tax Credit (WOTC)
Supplemental Security Income (SSI) recipientA recipient of SSI benefits for any month ending during the past
60-day period ending on the hire date.
Summer Youth Employee
A 16 or 17 year-old youth who works for the employer between May 1 and September 15 and lives in an Empowerment Zone.
A Veteran who is:
A member of a family that received SNAP benefits (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date.
Entitled to compensation for a service-connected disability:• Hired within 1 year of discharge or release from active duty• Unemployed at least 6 months in the year ending on the hiring
date
Unemployed:• At least 4 weeks• At least 6 months
Work Opportunity Tax Credit (WOTC)
Please note that to be considered a veteran eligible for WOTC, an individual must meet these two standards:
Have served on active duty (not including training) in the U.S. Armed Forces for more than 180 days or have been discharged or released from active duty for a service-connected disability
Not have a period of active duty (not including training) of more than 90 days that ended during the 60-day period ending on the hiring date
Work Opportunity Tax Credit (WOTC)
Work Opportunity Tax Credit (WOTC)
How are credits calculated?
25% or 40% of a new employee's first-year wages, up to the maximum for the target group to which the employee belongs. Employers will earn 25% if the employee works at least 120 hours and 40% if the employee works at least 400 hours.
Work Opportunity Tax Credit (WOTC)
What is the amount?
Generally, an employer may take a tax credit of up to 40 percent of the first $6,000 (up to $2,400) in wages paid during the first 12 months for each eligible new hire.
Work Opportunity Tax Credit (WOTC)
Other amounts (Long-Term TANF)
Employers can earn a maximum $9000 tax credit per eligible hire for hiring individuals certified as Long-term Family Assistance Recipients (2 years of credits).
Work Opportunity Tax Credit (WOTC)Other amounts (Long-Term TANF) If the individual works at least 120
hours in the first year, the employer may claim a tax credit equal to 40% of first year wages, up to the first $10,000.
If the individual works at least 400 hours in the second year, the employer may claim a tax credit equal to 50% of second year wages, up to the first $10,000.
Work Opportunity Tax Credit (WOTC)
Other amounts (Disabled Veterans) For Veterans with a service-
connected disability hired one year from leaving service with the same qualified wages
cap ($12,000) and maximum tax credit ($4,800).
Work Opportunity Tax Credit (WOTC)
Other amounts (Disabled Veterans) For Veterans with a service-
connected disability unemployed for at least 6
months with the qualified wages cap ($24,000) and the maximum tax credit ($9,600).
Work Opportunity Tax Credit (WOTC)
Other amounts (Veterans)
For Veterans unemployed for at least 6
months with the qualified wages cap ($14,000) and the maximum tax credit ($5,600).
Work Opportunity Tax Credit (WOTC)
HOW CAN EMPLOYERS PARTICIPATE IN THE WOTC?
To receive certification that a new employee qualifies the employer for this tax credit, the employer must:
Work Opportunity Tax Credit (WOTC)
Complete page one IRS Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, by the day the job offer is made.
Complete page two IRS Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, after the individual is hired.
Work Opportunity Tax Credit (WOTC)
• Complete either the one page ETA Form 9061, Individual Characteristics Form
• or ETA Form 9062 (If the new employee has already been conditionally certified as belonging to a WOTC target group, complete the bottom part of ETA Form 9062 (and sign and date it), that he or she has been given by a State Employment Agency or participating agency, e.g., Vocational Rehabilitation.)
Work Opportunity Tax Credit (WOTC)
(ETA Form 9061 or Form 9062) Continued:
If the new employee has not been conditionally certified, the employer and/or the new employee must fill out and complete, sign and date ETA Form 9061
Work Opportunity Tax Credit (WOTC)
Mail the signed IRS and ETA forms to the employer's State Workforce Agency.
**MAKE SURE TO MAIL FORMS IN WITHIN 28 DAYS
OF FIRST DAY ON JOB.**
Work Opportunity Tax Credit (WOTC)
All required forms and related documents must be mailed to the
following address:
WOTC Kentucky Office of Employment & Training
275 East Main Street, 2W-AFrankfort, Kentucky 40621.
Questions may be directed to program staff at 502/782-3069.
Work Opportunity Tax Credit (WOTC)
To get IRS Form 8850, the Work Opportunity Tax Credit Pre-Screening Notice and Certification Request, instructions, and ETA Forms 9061 & 9062 visit:
http://www.doleta.gov/business/incentives/opptax/wotcEmployers.cfm
Work Opportunity Tax Credit (WOTC)
More information:
Visit http://www.oet.ky.gov/ and click “employer services” then “tax credits”
Or visit http://www.doleta.gov/business/Incentives/opptax/
Use of WOTC Credit
May be used once per employee
Kentucky Tax Credits
The Unemployment Tax Credit (UTC)
The Unemployment Tax Credit (UTC)
The Unemployment Tax Credit (UTC) program provides employers a credit of $100 per eligible hire against Kentucky income taxes owed for hiring residents who have been unemployed for 60 days and remain on the payroll for at least 180 days.
The Unemployment Tax Credit (UTC)
For more information, contact WOTC Unit at 502-782-3069.
Or visit http://www.oet.ky.gov/employer/UTC_Application0507.pdf
Tax Credits and Incentives
Access Credits and Deductions
Disabled Access Credit
Barrier Removal Tax Deduction
Tax Credits
Barrier Removal Tax Deduction
• For ALL businesses• Up to $15,000 for structural renovations or transportation improvements, not new construction• Must comply with ADAAG• Subtract from total income before taxes• No extra IRS form
Architectural/Transportation Tax Deduction
Barrier Removal Tax Deduction [Section 190, IRS Code]
Priorities for Barrier Removal
• Getting in !
• Access to goods & services
For: customers, clients, patrons
• Restrooms
• Other amenities
Key Elements
• Signage
• Parking
• Path of travel
• Entrances
• Reach
• Restrooms
Additional Elements
• Public telephones/ water fountains
• Elevators
• Meeting rooms
• Emergency procedures
• Web sites
• Specific purpose (hotel rooms, etc)
Alternatives to Barrier Removal
• Providing goods curbside
• Providing home delivery
• Retrieving merchandise from inaccessible shelves or racks
• Relocating activities to accessible locations
Tax Credits
Disabled Access Credit
Disabled Access Credit [Section 44, IRS Code]
• Only for small businesses Less than $1 million in revenues 30 or fewer employees
• 50% of “eligible access expenditures”
up to $10,250 after first $250• Credit subtracted from tax liability• Expenses must be incurred to comply with the requirements of the ADA.
•IRS Form 8826
Disabled Access Credit [Section 44, IRS Code]
• “Eligible access expenditures” Removal of structural barriers Purchase of adaptive equipment (assistive listening devices, TTY)
Services (sign language interpreter, readers)
Materials in alternate format (audiotape, large print, Braille)
Use of Access Tax Incentives
• May be used annually• Credit and deduction can be combined by small businesses• May not carry over expenses from one year to next• But if amount of credit exceeds tax owed, may carry forward unused portion of credit to next year
Resources and Links
KY OET Work Opportunity Tax Credit Website
http://www.oet.ky.gov/employer/tax_credit.htm
Federal Work Opportunity Tax Credit Website
http://www.doleta.gov/business/Incentives/opptax
/
Federal ADA Tax Incentives
http://www.ada.gov/taxincent.htm Or http://www.irs.gov/businesses
Other Resources
Vocational Rehabilitation ProgramsOffice of Employment and Training
Office for the BlindCenter for Accessible Living
Veteran & VA Programs (CWT)Volunteer/Mentorship Programs
AND MORE…
Center for Accessible Living
www.calky.org
305 W Broadway, Suite 200 Louisville, KY 40202 (502) 589-6620 (v) • (502) 589-
6690 (TDD)
* * * * *
1051 N. 16th Street, Suite CMurray, KY 42071
(270) 753-7676 (v) • (270) 767-0549 (TDD)
* * * * *
top related