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 Tax Credits<br /> WOTC             8850<br />Free Money<br /> HIRE Act     W11<br />Hiring Incentives<br />   Workforce G...
Unused Tax Credits = Wasted Opportunities<br />The Federal Government is currently offering an unprecedented level of ince...
Qualifying New Hires Under WOTC<br />Employers can claim a credit for certain new hires in these groups:<br /><ul><li> Dis...
 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)</li></ul>Are You Missing Out	     On Free Government Money?<br />
Additional Groups That May Qualify<br /><ul><li>Disconnected Youth Ages 16-24  (These individuals are not in school or wor...
 SSI Recipients
 Hurricane Katrina Survivors (If employed in the Gulf Opportunity Zone)
 Ex-Felons</li></ul>Are You Missing Out	     On Free Government Money?<br />
Maximum WOTC Rewards Per Employee<br />$2400 per Adult New Hire<br />$1200 per Summer Youth New Hire<br />$4800 per Disabl...
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Tax Credits - Are You Missing Out On Free Government Money?

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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.

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Transcript of "Tax Credits - Are You Missing Out On Free Government Money?"

  1. 1. Tax Credits<br /> WOTC 8850<br />Free Money<br /> HIRE Act W11<br />Hiring Incentives<br /> Workforce Growth<br />Are You Missing Out On Free Government Money?<br />
  2. 2. Unused Tax Credits = Wasted Opportunities<br />The Federal Government is currently offering an unprecedented level of incentives for employers who hire disadvantaged and struggling Americans. <br />These tax credits often go unclaimed. Employers are unaware of these programs or think the administrative burden would outweigh the benefits of participation.<br />As a result, businesses are passing up hundreds of thousands of dollars in free money every year. <br />Are You Missing Out On Free Government Money?<br />
  3. 3. Qualifying New Hires Under WOTC<br />Employers can claim a credit for certain new hires in these groups:<br /><ul><li> Disabled Veterans
  4. 4. Unemployed Veterans
  5. 5. SNAP (food stamp) Recipients
  6. 6. Recipients of TANF (Temporary Assistance for Needy Families)
  7. 7. Disabled Individuals Referred from a Vocational Rehab Program
  8. 8. Youth and Young Adults in Empowerment Zones/Renewal Communities
  9. 9. State Office of Child Support Enforcement (OCSE)</li></ul>Are You Missing Out On Free Government Money?<br />
  10. 10. Additional Groups That May Qualify<br /><ul><li>Disconnected Youth Ages 16-24 (These individuals are not in school or working and need some skills training to be employable)
  11. 11. SSI Recipients
  12. 12. Hurricane Katrina Survivors (If employed in the Gulf Opportunity Zone)
  13. 13. Ex-Felons</li></ul>Are You Missing Out On Free Government Money?<br />
  14. 14. Maximum WOTC Rewards Per Employee<br />$2400 per Adult New Hire<br />$1200 per Summer Youth New Hire<br />$4800 per Disabled Veteran New Hire<br />$9000 per Long Term Welfare Recipient New Hire<br />THERE IS NO CAP ON THE NUMBER OF ELIGIBLE INDIVIDUALS YOU CAN HIRE!<br />Are You Missing Out On Free Government Money?<br />
  15. 15. Certifying that a New Hire is Eligible<br />Page 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. <br />The IRS and ETA form must be filed with the State Workforce Agency no later than 28 days from the date of hire.<br />Are You Missing Out On Free Government Money?<br />
  16. 16. 2010 HIRE Act<br />In 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.<br />Employers will save on their portion of the SS tax for each qualifying new hire’s income through the end of the year.<br />Employers will receive a $1000 business tax credit for each qualifying new hire who is employed for at least 1 year.<br />Are You Missing Out On Free Government Money?<br />
  17. 17. Who Should Complete Form W11?<br />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.<br /><ul><li>Individuals who are related to the employer don’t qualify
  18. 18. Neither does anyone hired to replace an employee who was fired without cause</li></ul>Are You Missing Out On Free Government Money?<br />
  19. 19. Waived SS Payroll Taxes<br />The Employer’s 6.2% Social Security tax is waived through the end of 2010 on wages up to $106,800<br />*PER QUALIFYING NEW HIRE*<br />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.<br />TOTAL SAVINGS: $1550<br />Are You Missing Out On Free Government Money?<br />
  20. 20. Business Tax Credit<br />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.<br />*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.<br />Are You Missing Out On Free Government Money?<br />
  21. 21. Collecting New Hire Information <br />To Take These Credits, You Need A System That Works <br /><ul><li> Data must be collected at the appropriate point during the onboarding process
  22. 22. New Hires need forms that are easy to complete so HR’s time is conserved
  23. 23. The most current tax credit forms must always be used to ensure accuracy
  24. 24. Virtual forms should be deployed that cannot be altered or left incomplete
  25. 25. Forms should be automatically forwarded to the hiring manager for review</li></ul>Are You Missing Out On Free Government Money?<br />
  26. 26. Distributing Tax Credit Data<br /><ul><li> 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
  27. 27. Form W11 should be forwarded to Payroll & Accounting so the credits for Payroll and Business Taxes can be taken in a timely manner
  28. 28. 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</li></ul>Are You Missing Out On Free Government Money?<br />
  29. 29. AllegroHR Universal Onboarding Helps Employers Capture Tax Credits<br />The following features enhance your ability to claim tax credits<br /><ul><li> Federal Forms included in online library: 8850, W11, and more
  30. 30. Wizard-based virtual forms eliminate new hire errors and omissions
  31. 31. Electronic signature collection permits online signing of tax credit forms in compliance with E-Sign regulations
  32. 32. IRS rules for tax credit form completion enforced automatically
  33. 33. User-definable data panels and workflows permit customization
  34. 34. Easy integration with third party tax credit administration partners</li></ul>Are You Missing Out On Free Government Money?<br />
  35. 35. Contact Us Today To Learn More About Universal Onboarding<br />www.emeraldsoftwaregroup.com<br />3060 Royal Blvd South<br />Alpharetta, GA 30022<br />Phone: 770.569.5122 Fax: 678.669.1516<br />Are You Missing Out On Free Government Money?<br />
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