How Can Employers Maximize Tax Credits and WOTC Benefits?
Understanding the intricacies of tax credits and incentives can significantly impact a business’s financial landscape. If you’re wondering about the potential tax savings for your business or clients, let’s delve into the world of Tax Credits, specifically the Work Opportunity Tax Credits (WOTC) program and Disaster Credits, and how HRD Markets can assist in identifying and maximizing these benefits.
Work Opportunity Tax Credits (WOTC): A Reward for Inclusive Hiring Practices
WOTC is a program designed to reward employers for hiring individuals from specific demographic groups facing barriers to employment. These groups encompass veterans, TANF (Welfare) recipients, SNAP (Food Stamps) recipients, the long-term unemployed, residents of Empowerment Zones, vocational rehab referrals, ex-felons, and SSI/SSDI recipients. Employers can receive substantial tax credits ranging from $2,400 to $9,600 per qualifying employee, depending on the target group.
The recent stimulus bill signed on December 27, 2020, has extended the WOTC program through December 31, 2025. Employers have a 28-day window from an employee’s start date to submit an application to the state workforce agency to claim these tax credits.
Disaster Credits: Navigating Challenges with Financial Support
Disaster Credits aim to support businesses affected by natural disasters, encouraging them to retain employees during recovery periods. The credits vary based on the severity and impact of the disaster. The Disaster Tax Relief and Airport and Airway Extension Act of 2017 cover hurricanes, and subsequent acts have expanded the scope to include earthquakes, tornadoes, wildfires, and other disasters.
To discover if HRD Markets can assist in identifying potential tax savings for you or your clients, getting appointed with us is the first step. We offer expertise in navigating the complexities of these credits and ensuring that businesses maximize the benefits available to them.
For the latest information on available tax credits, visit www.irs.gov. Our dedicated team at HRD Markets is ready to guide you through the tax credit landscape and help your business unlock its full potential.
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