tax credits - are you missing out on free government money?

Are You Missing Out On Free Government Money?

Tax Credits

Workforce Growth

WOTC 8850

HIRE Act W11Free Money

Hiring Incentives

Unused Tax Credits = Wasted Opportunities


The Federal Government is currently offering an unprecedented level of incentives for employers who hire disadvantaged and struggling Americans.

These tax credits often go unclaimed. Employers are unaware of these programs or think the administrative burden would outweigh the benefits of participation.

As a result, businesses are passing up hundreds of thousands of dollars in free money every year.

Qualifying New Hires Under WOTC

Employers can claim a credit for certain new hires in these groups:

• Disabled Veterans

• Unemployed Veterans

• SNAP (food stamp) Recipients

• Recipients of TANF (Temporary Assistance for Needy Families)

• Disabled Individuals Referred from a Vocational Rehab Program

• Youth and Young Adults in Empowerment Zones/Renewal Communities

• State Office of Child Support Enforcement (OCSE)


Additional Groups That May Qualify

• Disconnected Youth Ages 16-24 (These

individuals are not in school or working and

need some skills training to be employable)

• SSI Recipients

• Hurricane Katrina Survivors (If employed in

the Gulf Opportunity Zone)

• Ex-Felons


Maximum WOTC Rewards Per Employee

$2400 per Adult New Hire

$1200 per Summer Youth New Hire

$4800 per Disabled Veteran New Hire

$9000 per Long Term Welfare Recipient New Hire


THERE IS NO CAP ON THE NUMBER OF

ELIGIBLE INDIVIDUALS YOU CAN HIRE!

Certifying that a New Hire is EligiblePage 1 of IRS Form 8850 must be filled out no later than the date the job offer is made. Page 2 and ETA form 9061 (or 9062) are completed after hire.

The IRS and ETA form must be filed with the State Workforce Agency no later than 28 days from the date of hire.


2010 HIRE ActIn March of 2010, the HIRE Act was signed into law. It offers two types of incentives to businesses that hire individuals who have been out of work for 60 days or more.

1. Employers will save on their portion of the SS tax for each qualifying new hire’s income through the end of the year.

2. Employers will receive a $1000 business tax credit for each qualifying new hire who is employed for at least 1 year.


Who Should Complete Form W11?

New Hires who begin work between Feb 4, 2010 and Jan 1, 2011 who have worked no more than 40 hours during the last 60 days should complete the W11 affidavit during onboarding.

• Individuals who are related to the employer don’t qualify

• Neither does anyone hired to replace an employee who was fired without cause


Waived SS Payroll TaxesThe Employer’s 6.2% Social Security tax is waived through the end of 2010 on wages up to $106,800

*PER QUALIFYING NEW HIRE*

Example: Hire 1 qualifying individual at $50,000 per year on Monday, July 5th. Save 6.2% in taxes on 26 weeks of their wages ending December 31st.

TOTAL SAVINGS: $1550


Business Tax Credit

In addition to taking the payroll tax credit, Employers can also claim up to $1000 per qualifying new hire as a business income tax credit.


*Qualifying workers must remain employed for 52 consecutive weeks. During the last 26 weeks, they must be making at least 80% of the amount they made in the first 26 weeks.

Collecting New Hire Information To Take These Credits, You Need A System That Works

• Data must be collected at the appropriate point during the onboarding process

• New Hires need forms that are easy to complete so HR’s time is conserved

• The most current tax credit forms must always be used to ensure accuracy

• Virtual forms should be deployed that cannot be altered or left incomplete

• Forms should be automatically forwarded to the hiring manager for review


Distributing Tax Credit Data

• WOTC forms 8850 and ETA 9061/9062 go to the SWA for certification. Once approved, the relevant data can be distributed to Payroll & Accounting for internal processing

• Form W11 should be forwarded to Payroll & Accounting so the credits for Payroll and Business Taxes can be taken in a timely manner

• Tax Credit information can also be distributed automatically to a third party vendor who handles all the details in exchange for a percentage of the money saved


AllegroHR Universal Onboarding Helps Employers Capture Tax Credits

The following features enhance your ability to claim tax credits

• Federal Forms included in online library: 8850, W11, and more

• Wizard-based virtual forms eliminate new hire errors and omissions• Electronic signature collection permits online signing of tax credit

forms in compliance with E-Sign regulations

• IRS rules for tax credit form completion enforced automatically

• User-definable data panels and workflows permit customization

• Easy integration with third party tax credit administration partners


Contact Us Today To Learn More About Universal Onboarding

www.emeraldsoftwaregroup.com

3060 Royal Blvd SouthAlpharetta, GA 30022

Phone: 770.569.5122 Fax: 678.669.1516


http://www.emeraldsoftwaregroup.com/