Consulting Business Wealth Enabler Consultant How To Internet Systems

Consulting Business Wealth Enabler Consultant How To Internet Systems Since 1997

By - Philip Harman

Work Opportunity Tax Credits

Work Opportunity Tax Credits

This credit is given to profit employers. There is no fixed limit for employing new hires.

Such businesses can get a credit that reaches to around 40% for the 1st $ 6000 paid by the employer to the employee. If the company hires a person from any particular target group of the WOTC, it can be eligible for $ 9000 as tax credit for over two years.

Requirements for employees:

People who can be hired must be from any one of the following;

Recipients who are qualified for Temporary Assistance to Needy Families i.e. TANF.
Veterans who are qualified.
Veterans who are disabled yet qualified.
Veterans who are unemployed but qualified (new employees who started working between 1st January 2009 and 31st December 2010).
Qualified youth who are disconnected (new employees who started working between 1st January 2009 and 31st December 2010).
Ex-Felons who are qualified.
QSCRs (Qualified Designated Community Resident)
QVRS (recipients of qualified vocational rehabilitation)
Summer youths who are residents of RCs (Renewal Community) or EZs (Empowerment Zones).
Recipients of food stamps who are qualified.
Family assistance for long-term (TANF/AFDC)
Employees of Hurricane Katrina

Other requirements:

Furthermore the other requirements for the employees to be hired are as follows;

He should be new employ.
He should be a member of the target groups mentioned above.
Before hiring he should fill the IRS 8850 form.
He should work for at least 120 hours.

Procedure:

Every new hired employee fills the IRS 8850 form.

Information that is necessary is retrieved by the authority to assess the benefits and credits that are given to the company. From the report of payroll the authority sends a monthly report to the company in which all the credits that the company has got are listed.

TaxCreditsForBusinesses.com is the largest company connecting business owners, CPAs and payroll companies with tax credit processing.  Doing business since 2003 we have been connecting businesses saving our clients millions of dollars in federal, state, and local taxes.

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