Business Tax Credits (WOTC):
Deluxe Hire automates the WOTC screening and application process and guarantees that your business will receive a tax credit, or you will receive a full refund of your filing fee. Deluxe Hire automates the required documentation that you need to complete Form 5884, which you are required to file with your tax return. WOTC credits can be carried forward for up to 20 years.
- WOTC reduces an employer’s cost of doing business.
- Tax credit savings range from hundreds to tens of thousands of dollars in tax savings per qualified new hire.
- WOTC can reduce an employer’s federal income tax liability by as much $2,400 to $9,600 for each qualified new hire it makes in the first year or two of employment.
- There is no limit on the number of individuals an employer can hire to qualify to claim the tax credit.
- Hires can come from nine targeted groups, ranging from Veterans to public assistance recipients and designated community residents.
- Certain tax-exempt organizations can take advantage of WOTC by hiring eligible veterans and receiving a credit against the employer’s share of Social Security taxes.
- Location Based Tax Credits: Existing employees and new hires can also qualify businesses for both retroactive and ongoing federal and state tax credits, based on where the business location is.