But first, I’d like you to think about a couple of things…(Refer to slide)
(Refer to slide)If a or b, discuss benefits of pursuing creditsIf c or d discuss benefits of automation
Every year there are billions of dollars in federal and state tax dollars available to employers who qualify.Programs for hiring, training, creating jobs, retaining jobs, capital investments, renewable energy, energy efficiency.Increase cash flow by reducing the amount owed in income taxes (or even cash payments)Process to claim these credits is complex and time-consuming, leaving many incentives unclaimed.
(Refer to slide)Discuss e-signature
Discuss why this is an imperfect processSince some of you may not be as familiar with hiring credits, I wanted take you briefly through the process. When a job seeker applies for a job, this is the best time for them to complete the 8850 form. When screening with paper , you don’t always get every candidate to complete a form.Then the hiring manager needs to submit the signed 8850 to either your tax partner or the state dept of Labor within 28 days of hire.If you have multiple hiring locations, the largest amount of work is following up with those locations. And getting all of the signed forms submitted in time. The Dept. of Labor certifies eligible hires. If they can read the Social Security Number, the biggest reason for rejection
Refer to slide…then: There are a couple of different pricing models that Tax Incentives companies offer:A Contingent pricing model is % based on tax dollars captured. Fixed fee model is monthly fee based on employee count.There are several advantages to a Fixed fee model: Can be budgeted.More cost effective. The more credits the company earns, the bigger the discount.Typically the more employers participate (paying monthly), the more successful the program.No big invoice at the end of the year.
Thank you! Do you have any questions?
Incentives Advisors Hire Minds Presentation
Hiring and Training Incentives<br />Uncovering Hidden Opportunities<br />Bill Becker, CEO<br />Incentives Advisors<br />T: firstname.lastname@example.org | www.incentivesadvisors.com<br />
Discussion Overview<br /><ul><li>Introduction to hiring credits.
capture even more incentives by making simple changes to existing processes?</li></li></ul><li>Poll: How much experience do you have with hiring credits?<br />a. None or very little awareness of them.<br />b. I’m aware of them but currently not screening.<br />c. I’m currently screening manually with paper 8850 form.<br />d. I’m currently screening through phone Integrated Voice Response (IVR).<br />e. I’m currently screening electronically.<br />
A little background<br /><ul><li>Billions of dollars in federal and state tax dollars available to employers who qualify.
Increase cash flow by reducing the amount owed in estimated quarterly or annual income taxes dollar for dollar.
Process to claim these credits is complex and can be time-consuming, leaving many incentives unclaimed. </li></li></ul><li>Market Trends<br /><ul><li>Continuing extension and expansion of federal programs and revival of grant programs which had lost funding.
2010 federal payroll incentive that targets the unemployed.
New state programs focus on reducing unemployment and creating jobs.
Now is the time to capture these available funds.</li></li></ul><li>Over 170 Hiring Incentive Programs<br />25%<br />45%<br />30%<br />
Work Opportunity Tax Credit (WOTC)<br /><ul><li>Jointly managed by Dept. of Labor and IRS.
Encourages employers to hire individuals who qualify as a member of a targeted group:
Provides a federal tax credit up to $9,000 if you hire these individuals.</li></li></ul><li>Geographic based credits<br /><ul><li>Both federal and state jurisdictions offer tax credits to businesses to locate in disadvantaged or targeted growth areas.
Can be 50% or more of your total hiring credits. </li></li></ul><li>Sample state zone credits<br /><ul><li>Arizona Enterprise Zone – $3,000 over 3 years per job created.
Florida Enterprise Zone –$1,500 per new hire in designated areas.
Georgia - $20,000 over 5 years per job created.
California Enterprise Zone – $37,500 over 5 years.</li></li></ul><li>Examples of new programs in 2010<br />Florida - up to $ 1,000 per unemployed individual hired.<br />New York - $5,000 per employee.<br />Texas - $2,000 per unemployed individual hired.<br />Maryland - up to $5,000 for creating jobs for formerly unemployed.<br />California- new jobs creation credit. <br />
Poll: How much experience do you have with the HIRE Act?<br />a. Not familiar with this program.<br />b. I’m aware of it but currently not screening.<br />c. I’m currently screening manually with paper W-11 form.<br />d. I’m currently screening through phone Integrated Voice Response (IVR).<br />e. I’m currently screening electronically.<br />
HIRE Act<br /><ul><li>Hiring Incentives to Restore Employment (HIRE) Act payroll (cash) incentive.
Waives employer’s 6.2% Social Security taxes for employees who have worked under 40 hours the past 60 days.
If employee stays one year, also receive $1,000 income tax credit.
60% of candidates screened so far have been eligible.</li></ul>HIRE Act ends Dec. 31, 2010 but could extend through 2011.<br />
How screening works -- manually<br />HR or Tax Partner follows up with hiring managers to make sure forms are submitted in time.<br />Job Seeker completes and signs 8850 Form along with job application.<br />Hiring Manager submits 8850 for every hire to Tax Partner or State Dept. of Labor within 28 days.<br />Dept of Labor certifies employees if eligible and forms are legible. <br />Missing Forms<br />Rejected eligible candidates<br />Difficult to get all forms submitted<br />Lots of extra paper and mailing<br />
Screening electronically<br /><ul><li>Candidate completes your online application.
Tax credit screening is a seamless step within the application.
Takes between 30 seconds and two minutes.</li></li></ul><li>Dynamic screening questionnaire<br />After clicking ‘Submit,’ begins the tax screening process. Seamlessly integrated into your job application. <br />
Know who is eligible before hiring<br /><ul><li>Eligibility results within your recruiting solution.
Estimated dollar amount per eligible candidate is available in some systems if interested.
Tax forms available with your hiring packet. </li></li></ul><li>Stock the Pond<br /><ul><li>Opportunity beyond 100% screening/forms compliance.
Increase candidate pool without sacrificing quality.
Natural fit with hiring automation.</li></li></ul><li>Benefits of screening with an online application<br /><ul><li>Efficient. No need to add an extra hiring step.
Eliminates 90% of paperwork with tax credit screening.
Accountability – ensure high compliance through reporting
Informative. Informs who is eligible before interviewing and hiring.
Results: Maximized credits turning HR into a profit center!</li></li></ul><li>Measuring for success<br />
Non-screening programs: Training Incentives<br /><ul><li>Millions of dollars are available to employers who increase their workforce skill set through training.
Can significantly reduce workforce training costs. </li></li></ul><li>Non-screening programs: Negotiated Incentives<br /><ul><li>Millions of dollars are available to employers who create or maintain jobs in local markets.
Applications are reviewed and approved/denied.
Credits can be up to 10% or more of the payroll and/or capital investment. </li></li></ul><li>Non-screening programs: Other Programs<br /><ul><li>Credits designed to encourage investments in research and development.
Cost segregation studies to increase cash flow through accelerated deductions.
Green incentives - Energy efficiency/renewable energy optimization. </li></li></ul><li>Who is Eligible – Dispelling the Myths<br /><ul><li>Are you a for profit, nonprofit or a government entity?
Is your company profitable or paying corporate incomes taxes?
Relate incentives benefit to operations metric (number of stores, widgets sold).
Build ROI, including hard costs “at risk.”</li></li></ul><li>Elements of a successful program<br /><ul><li>Knowledge and experience to capture the incentives available in areas where my company has locations?
Ability to leverage technology and tax expertise to screen for all available programs upfront during the application?
Integrated process for capturing non-screening programs?
Experienced tax managers with availability to handle state-specific programs and proactively monitor new available programs?
Flexible reporting which fits the corporate structure and make it easy to monitor program success?