Date post: | 25-May-2015 |
Category: |
Business |
Upload: | calchamber |
View: | 134 times |
Download: | 1 times |
Is your company taking advantage of Federal, State and Local Tax
Incentives?
Why do tax credits exist?
Encourage businesses to Locate or relocate Maintain or expand operations Maintain or increase workforce Train current or new employees
Revitalize economically distressed areas
Move people from public assistance into employment
Value to clients
Hard dollar savings
Creates funding for other services
Viewed as contributing member of the community
Does your company qualify?
•Yes, credit opportunities if–Not-for-profit hiring veterans–Not-for-profit for 2010 HIRE Act–For profit companies
•Yes, fantastic credit opportunities!
–Profitable companies experiencing strong hiring growth
–Profitable companies with high turnover, hourly workforce
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Federal, state and local programs
Federal
State Credits
Geographic Programs
25%
30%
45%
Work Opportunity Tax Credit (WOTC)Up to $9,600 per eligible hire
State CreditsUp to $20,000 per eligible hire
Geographic / Enterprise ZonesUp to $37,440 per eligible hire
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Work Opportunity Tax Credit (WOTC)
• Managed by Dept. of Labor and IRS
• Encourages businesses to hire from targeted groups:– Veterans – Receiving government
assistance
• Credits based on hours worked and wages earned (25% or 40%)
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WOTC Case Study
• 7,500 employee long-term care organization
• Screened during application
• $500,000 in eligible new hiring credits in 8 months
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How it works
Screening manually
• Job seeker manually completed form
Missing forms
• Hiring manager submits 8850 for every hire
Extra paper and mailing
• Forms follow up
Difficult to submit all
forms
• Certifi-cation
Rejected eligible
candidates
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Other screening methods get better results
• Phone screen
• Online screening questionnaire
• Best practice – within a recruiting solution
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• Asdfasdf– asdfasdf
Best practice: online screening
Under 2% opt-out
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View results before interviewing
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Benefits of electronic screening
Less work!• 98% less paperwork• Pre-populated forms
More credits!• Screen for all available credits• Eligibility known immediately• Higher screening and forms
compliance
Capturing WOTC just got a lot easier
• FINALLY – electronic signature approved!
• State agencies jumping onboard
• Ask name and date• File electronically or
mail signed form• More dollars with less
effort!
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California Enterprise Zone (EZ)
• State incentive for nearly 30 years
• Encourages business to locate, invest and create jobs
• Currently 42 designated Ezs today
• Several benefits for businesses
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CA – EZ worth up to $37,440 per employee
• Hiring Credits, Equipment Credits, & other benefits
• Hiring Credit screening is similar to WOTC
• No industry or company requirements
• Timeframe to certification is about 3 months
• Credit taken on tax return (retro as well)16
CA-EZ case study
• 2,500 employee food manufacturer
• In 3 California EZs
• $1M in retroactive credits
• Additional credits available!
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HIRE Act: it’s not too late!
• Payroll (cash) incentive
• Waived 6.2% Social Security taxes in 2010
• Many missed opportunity
• It’s not too late to capture it!
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HIRE Act case study
• 2,500 employee hospitality company
• Manually screened retroactively for HIRE Act
• Minimal work involved
• $250,000 in cash back!
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Another lucrative CA incentive program
• California Employee Training Program (ETP)
• Reimburses for training expenses
• Training of full-time, permanent employees
• Must provide training plan to be submitted and approved before training is done
California ETP Case Study
• Regional headquarters
• Implementing SAP
• 300+ employees trained
• IA wrote and submitted application, managing compliance
• Awarded contract: $400,000
Are you leaving other funds on the table?
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Screening Credits
Training Grants
Negotiated In
centives
Cost Segregatio
n
GreenR&D
Online resources
• CA-EZwww.calchamber.com/ez
• WOTC http://www.doleta.gov/business/incentives/opptax/
• HIRE Act http://www.irs.gov/businesses/small/article/0,,id=220745,00.html 23
Learn which programs are available
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http://incentivesadvisors.com/Request.aspx?src=scalch
Online resources
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Summary
• Government programs that encourage hiring
• Federal, state and local programs
• Technology makes it easier
• Consultants can reduce work involved
• Online resources available
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ShoppingTroll.com
HRCaliforniaYou can get additional information about Incentives Advisors and complete the contact request form in the “Perks & Discounts” section of HRCalifornia.
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