Take advantage of your employee turn-over!
Like most franchises your employee turn-over ratio can be anywhere from 100% to 200%. This is not always a bad thing when it comes to Tax Credits. For all of the hassles in dealing with HR, you might as well benefit from this with the Federal "WOTC" Tax Credit.
What is "WOTC"?
The Work Opportunity Tax Credit (WOTC) promotes the hiring of individuals who qualify as members of target groups, by providing a federal tax credit incentive of up to $9,000 for employers who hire them.The Small Business and Work Opportunity Act of 2007 extend the WOTC Program through August 31, 2011. The WOTC has two purposes:· To promote the hiring of individuals who qualify as a member of a target group, and · To provide a federal tax credit to employers who hire these individuals. An employer may qualify for a tax credit of up to $9,000 if the employee is a member of a designated target group and meets that group's specific requirements.Target Groups that Qualify for the WOTC — Individuals hired from the following nine target groups may qualify an employer for the WOTC:
- Qualified recipients of Temporary Assistance to Needy Families (TANF).
- Qualified veterans receiving Food Stamps or qualified veterans with a service connected disability who:
- Ex-felons hired no later than one year after conviction or release from prison.
- Designated Community Resident – an individual who has attained ages 18 but not 40 on the hiring date who reside in an Empowerment Zone, Renewal Community, or Rural Renewal County.
- Vocational rehabilitation referrals, including Ticket Holders with an individual work plan developed and implemented by an Employment Network.
- Qualified summer youth ages 16 through 17 who reside in an Empowerment Zone, Enterprise Community, or Renewal Community.
- Qualified Food Stamp recipients ages 18 but not 40 on the hiring date.
- Qualified recipients of Supplemental Security Income (SSI).
- Long-term family assistance recipients.
First Capitol Consulting, Inc. (FCCI”) utilizes a 800# call center where a newly hired employee is screened via telephone by our professionals. Once an individual is identified, FCCI will obtain and submit all necessary documentation for certification, which requires 28 days from the date of hire. FCCI will calculate credit amounts and provide applicable income tax schedule to be included in federal income tax returns. FCCI will also provide audit defense, at our cost, for all works performed by FCCI. There are no up-front cost and all fees are done on a contingency basis, we will take a small percentage of the Federal Tax Credits that you USE!
Senior ManagerFirst Capitol Consulting, Inc.3530 Wilshire Blvd., Suite 1460Los Angeles, CA 90010213-382-1115 office213-382-1161 fax