Companies that are not creating jobs often think that there are no tax credit opportunities available for them.  This is not always the case.  Incentives for hiring targeted employees are often available even when headcount is not increasing.  Tax credits can be generated by turnover driven hiring, and some tax credits are available for qualifying incumbent employees.

For example, the Work Opportunity Tax Credit (“WOTC”) applies to companies that hire targeted employees in the following categories:

• Qualified IV-A (TANF) Recipient
•  Qualified Low-income Veteran
•  Qualified Veteran with Service-connected Disability
•  Qualified Ex-felon
•  Vocational Rehabilitation Referral
•  Recipient of SNAP Benefits (food stamps)
•  SSI Recipient (Supplemental Security Income)
•  Long-term Family Assistance Recipient

While WOTC applies to many companies, the process of claiming it can be burdensome because job applicants must be screened for the credit on or before the day a job offer is made, and qualifying new hires must be “certified” by the government before a credit can be claimed.

Outlaw Consulting assists clients with the screening process, the submission and processing of forms, tracking pending certifications, and calculating the tax credit. We can help you effectively and efficiently take advantage of the WOTC opportunity.

There are also a number of tax incentives for employers that have employees that work and live in various zones, such as Empowerment Zones.  These tax incentives can be claimed retroactively.