Sen. Sheldon Whitehouse, a Democrat from Rhode Island introduced a measure earlier this month intended to encourage business to hire unemployed workers by providing businesses with tax credits for doing so. The Job Creation Tax Credit Act of 2011 (S. 1271) amends provisions in the 2010 HIRE Act. It gives employers who hire workers who were previously unemployed refundable tax credits based on their wages.

The credits would start at of 15% of 2011 wages and drop to 10% in 2012. If passed, the bill would take effect immediately and last until January 1, 2013. Qualified individuals would be those hired during that period who have not been employed for more than 40 hours during the previous two months. The bill includes a clause ensuring workers hired under the bill cannot be used to replace anyone currently employed unless that employee left work voluntarily or was fired for cause.

Sen. Whitehouse has stated that the bill is intended to reduce the cost and risk of hiring new workers during an economically uncertain time and that 'by providing refundable tax credits for new hires, this bill will help businesses hire the workers they need to expand." The bill was referred to the Senate Committee on Finance.

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Different states have different tax credits and incentives, and many have strict rules surrounding compliance and qualifications for these. Below are summaries for just a fraction of what is available in the US.

California
California provides quite a few employment credits for businesses. The Department of Housing and Community Development allows up to two Manufacturing Areas to be asked for by California cities’ governing boards by adhering to preset criteria. Also, the Hiring Credit for Manufacturing Enhancement Area is accessible by taxpayers who are qualified and employ disadvantaged individuals. Any deduction that is permitted by Corporation Tax Law for salaries and wages that the credit is based upon must be reduced by the amount of that credit prior to any reduction surrounding how much credit is allowed for it.

Connecticut
Connecticut’s Hiring Incentive Tax Credit, against state taxes, might be accessible by employers. If it is available to the employer, he or she can obtain a credit of $125 per month for up to one year for each employee working at least 30 hours a week for one month, who has also gotten Temporary Family assistance for more than nine months. An eligible employee can total up to $1500 per year with this credit.

Massachusetts
Massachusetts provides a Full Employment Credit for any employer participating in the Full Employment Program. This credit is worth $100 each month per participating employee, up to $1200. Any unused portions of this credit can be carried for up to five years. The Department of Transitional Assistance must first approve participation in this program.

New York
New York taxpayers that qualify for an investment tax credit can be eligible for employee incentive tax credit for the next two tax years. This is allowed as a credit in the sole situation that the business’ average employee population is at least 101% of the average employee population during the business’ employment base year – this is defined as the year that precedes the year that the tax credit is permitted.

Pre-employ.com can help you. We’ll inform your business of current regulations regarding incentives. We also submit agency forms, calculation credits, file appropriate taxes and maintain records. We ensure that the corporation remains in 100% compliance. Contact Pre-employ.com today to discuss how our Business and Tax Credits Incentives Consulting service can benefit your company.

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Each year, businesses overlook millions of dollars in Tax Credits and Incentives. Furthermore, billions of dollars of local, state and federal tax credits and incentives are unclaimed. Businesses can retain more of their revenue and increase cash flow by taking advantage of tax incentives and credits. Business Tax Credits and Incentives Consulting can help your corporation take full advantage of the programs offered, while building a solid workforce. Consultants can change the way your company conducts business in 2011.

Business and Tax Credits Incentives Consulting can identify opportunities where your corporation can save money and maximize the amount of credits and incentives available. We will inform your corporation of current regulations regarding incentives. Our company will also submit agency forms, calculation credits, file appropriate taxes and maintain records. We will ensure that the corporation remains in 100% compliance.

Our company will review your corporation’s business practices and determine which incentives are applicable to your situation. We will gather information related to eligible corporate tax incentives and document your deductions on your tax forms.

Common corporate tax incentives are provided for your edification:

Federal HIRE Act Program

On March 18, 2010, the Federal HIRE Act program was signed into existence to provide incentives to companies who hired unemployed individuals or part-time workers. The companies receive a Business Tax Credit and a Social Security Exemption.

Work Opportunity Tax Credit (WOTC)

Nearly, 20% of employers are eligible for tax credits of $9,000 or more for hiring employees. Our company can help you receive the tax benefits that you deserve. If your company hires long-term welfare recipients, the company is eligible for WOTC under the Long-Term Family Assistance Program. Corporate tax incentives are available for up to $9,000 per employee, as well as, disabled veterans and individuals in the Designated Community Resident target group. Up to two years of the employee’s wages may be eligible. This program is extended through August 31, 2011.

Federal Empowerment Zone Credits

The Federal Empowerment Zone (FEZ) Wage Tax Credit Program provides up to $3,000 per employee in corporate tax incentives for hiring employees in communities and zones that are economically disadvantaged. The corporation must also be in the zone where the employee resides and qualifies.

Research and Development Credits

Our company can also help your company receive corporate tax incentives for improvements made in research and product development. Tax liability deductions are available to corporations that implemented product and process improvements that were more cost effective or that engaged employee groups in research.

California Enterprise Zone Credits

California provides corporate tax incentives for businesses that hire ex-offenders, disabled persons, Native Americans or other socioeconomic designations. Additional credits may apply for business expenses, leasing, loan interest, equipment purchases and net operating losses.

State and Local Tax Incentive Programs

Corporations may qualify for various tax credits, such as geographic economic stimulus, expansion of jobs, hiring welfare recipients, wage-based incentives, environmental clean-up and training credits.

*For more information on implementing your tax credits and incentives program call 800-300-1821 or send us an email at info@pre-employ.com.

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In today’s struggling economy the federal, state and local governments are giving tax credits and incentives to employers through the Federal HIRE Act program. Employers can take advantage of a Social Security Tax Exemption and a general Business Tax Credit. These programs include the Work Opportunity Tax Credit WOTC, Research and Development Incentives, Federal Enterprise Zone Credits and many more.

Credits as high as $9,000 for up to 20% of employees go unclaimed. Small and large companies can take advantage of this through tax credits and incentives consulting. Consulting companies can help any business find out if they are missing out on large sums of tax credit and incentives. This can make the difference of survival for a company struggling in the down economy.

Congress provides the WOTC to private-sector businesses to help them hire people from twelve target groups who have had difficulty being employed. Earning a steady income will help these people shift from economic dependency to self-sufficiency and become contributing taxpayers. Their employers get the advantage of having their federal income tax liability reduced. This is a good incentive to diversify the workplace.

The Federal Empowerment Zone Credits (FEZ) Wage Tax Credit Program is for businesses that hire people located in select areas or community zones that are considered by the federal government to be disadvantaged. The credits can be up to $3000 per qualifying employee per year. The work site must be in the qualifying zone.

If a company commits to quantifiable strategies for process and product improvement that impacts cost-effectiveness and which broadens the employee groups engaged in the research, they could receive beneficial tax liability deductions through Research and Development Credits.

Finding out about and securing these tax incentives is a very complicated process and most businesses don’t have a knowledgeable employee who can devote the time and effort it will take to get the benefit. A consulting company that is focused on all the tax incentive possibilities and has professionals who can match them to each businesses specific objective can achieve tax incentives in a short time for a lot less expense.

Past-employ.com is one such company. They will review and analyze a company’s goals and find the tax incentives that are consistent with them. They will prepare all the documentation necessary to secure the deductions. Once the deductions are secured, they review the results and make sure the company’s expectations have been met. At http://www.past-employ.com/Tax-Credits-and-Incentives.aspx the Business Tax Credits and Incentives Program is clearly presented. It is a contingency-based program so there is no financial risk for the client. Based on the provided employment data, they will find all the options open including the regulations and submit the agency forms, calculate the credits that are received, track the status of the application, apply the appropriate tax filing and maintain records.

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