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Incentives for hiring, retaining and training your people
Jobs matter. Governments at all levels offer incentives to companies to keep their workforces in place, hire new employees, and train their people on the skills needed for a better future. Whether you're planning on adding jobs to an existing facility, opening a new operation or moving to a new location, RSM can help you explore the full range of credits and incentives available. Key opportunities include:
Job tax credits
Nearly every jurisdiction provides job tax credits to encourage employers to create new jobs or retain existing employees. A strong workforce incentive management process will make it easier for you to identify qualifying employees and hires in the states where you do business, as well as weigh the benefits of expanding into different locations.
The Work Opportunity Tax Credit (WOTC) is a federal income tax for employers that hire individuals from specified target populations, including veterans, ex-felons, summer youth, members of designated assistance programs, and others. We can design a seamless, confidential analysis into your hiring process to ensure you receive the credits you are due.
Empowerment zone credits
Many states and the federal government offer empowerment zone credit opportunities to reward companies that offer jobs in distressed areas. The specific rules vary by jurisdiction and benefits are sometimes tiered, with higher incentives offered for investments in more severely distressed communities. Understanding these credits and how they work together can lead to significant long-term benefits for your business.
Like most businesses, you likely engage in some level of workforce and professional development, but are you taking advantage of the programs available to offset those costs? Many companies are not. We can identify existing and proposed training activities that may qualify for incentives to help you make the strategic decisions that can improve your return on your people investment.
IRS has issued Notice 2018-71 to address questions around claiming the new section 45S employer tax credit for family and medical leave.
A growing workforce requires human resources, payroll and tax to work together. Learn risks and opportunities that come with new employees.
The Work Opportunity Tax Credit (WOTC) offers employers a credit for a portion of the first-year wages of employees based on hours worked that were hired from certain target groups. The credit can be substantial, but how do you address WOTC credits when you acquire another company?
Mistaken ideas about the Work Opportunity Tax Credit keep many employers from realizing tax savings. Read about 5 myths here.