Many businesses today, particularly in the restaurant and staffing industries that have extraordinary high turnover, decide whether they will hire or not hire due to the expected cost. We all know that the greatest cost for any business is staffing and labor-related. It is estimated that a new hire cost a business owner approx. $4,000. And if that new hire doesn’t last a week, means that the employer has to basically eat that cost. For a really small businesses this can very be problematic.
What is most surprising is that many business owners, large and small, are totally unaware that they are leaving thousands if not millions of dollars on the tax table by not knowing of the 1996 federal tax credit program, called the Work Opportunity Tax Credit [WOTC]. WOTC was created to incentivize employers to hire and retain workers from target groups – Veterans, Temporary Assistance for Needy Families [TANF] recipients, Supplemental Nutrition Assistance Program [SNAP] (Food Stamp) recipients, residents living in empowerment zones or rural renewal counties), employees receiving certain types of vocation training, ex-felons, Supplemental Security Income recipients, summer youth employees, and seasonal workers. Employers can claim about $1 billion in tax credits each year under the WOTC program. The good news is that there is literally no limit on the number of individuals an employer can hire to qualify to claim the tax credit nor how long the new hire stays with the company.
With our program, we streamlined the traditionally cumbersome, stressful, and time consuming process, where the employer would have to be pressed to have the application completed correctly within 28 days, and in most cases, he doesn’t find out the tax credit of the new hire until AFTER he or she is hired. Our program is real-time, computer-based, and involves a third-party that will handle the paper process for the business owner, which will allow he or she to continue to focus on working on their business, and to better include the credit process in the hiring procedure by knowing what the credit amount, if any, the prospective new hire qualifies for BEFORE they are hired. Our clients also get an extra benefit, we look at ALL Employer-Based Tax Incentives, to include two programs in addition to WOTC – Section 41 R&D Tax Credit and the Startup Tax Credits – and realize their benefits immediately.
Any industry qualifies for Employer-Based Tax Incentives so as they pay U.S taxes such as, but not limited to: manufacturers, software companies, producers of products, architectural, engineering, pharmaceutical, startups , and more.
The tax credit to the employer can be as much as $2400 to $9600 per each new hire. For example, if a restaurant owner hires 10 new employees he or she can potentially earn $24,000 in tax credits, at the low end, which can help to offset any tax shortfall in the current our future tax year, and free up cash. This can be a HUGE relief and benefit to a small business owner. One big reason that so man business owners are unaware of the possible millions of dollars that they are leaving on the table is that they rely completely on their tax professional who may be quite proficient in balancing the businesses’ accounts, but, with all due respect, may not be so when it comes to seeking out and knowing about the vast amounts of tax credits that the business may qualify for. If your business is not completing a form 8850 with each and every new person you consider for employment, you are not taking advantage of this Tax Credit. Simple.
If you want to see how much you can potentially save click here , visit www.arkadbizsolutions.com, or contact Antonio @ 404.889.6617 to schedule a 20 minute no risk no cost assessment to work with your tax professional to see what tax credits you may qualify for and retrieve operating cost that you have overspent – If we can’t find you any savings, there is no cost.