Employment Tax Credits
Unlock your company’s profit potential with employment tax credits.
Maximize profitability with employment tax credits and unlock your company’s full potential. Implementing an employment tax credit program can significantly increase profitability by generating billions of dollars in tax savings and reducing your effective tax rate. Both federal and state governments offer tax credits for employers across the country. While large, publicly traded companies often have established programs, many businesses are unaware of these opportunities or lack the resources to implement them successfully.
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Outsource your tax credit program to experts
Outsource your employment tax credit program to Sikich. We handle eligibility screening, filings, and documentation for IRS credits like WOTC and FEZ, ensuring accurate claims and maximizing savings.
WOTC
Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit (WOTC) helps employers save on taxes by hiring individuals from eligible groups. Sikich guides you in implementing an effective credit program, aligning with your growth strategy, monitoring progress, and managing payroll data for maximum benefits.
Steps for Claiming WOTC:
Steps for Claiming WOTC:
- Employer screens prospective employees on or before date of hire.
- Submit application forms to the SWA within 28 calendar days of hiring eligible employees.
- Follow up with SWAs to check certification status (provide additional information, obtain WOTC certificate, or address application denials).
- SWAs process WOTC applications at their discretion, potentially causing delays in issuing certificates.
FEZ
Federal Empowerment Zone Tax Credit
The IRS provides a 20% tax credit on up to $15,000 in wages per employee in Federal Empowerment Zones—max $3,000 each. Businesses must hire local zone residents. No certification is required, offering significant tax savings and increased profitability.
Our services encompass the following:
Our services encompass the following:
- Complimentary eligibility review (given a detailed location list)
- Credit calculation for annual income tax reduction
- Continuous legislative monitoring for potential federal program enhancements
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