Manufacturer Tax Credits

Employee Retention Tax Credits

You may not think of your company’s hiring or human resources (HR) department as a profit center – and it probably isn’t right now.  But you can change that fairly easily and quickly with these newly-expanded employer incentives that add up to 8X the amount of PPP loans – and these never have to be repaid.

That’s because federal, state and local employment-related tax incentives are both more generous than ever due to the coronavirus pandemic and more easily claimed than ever thanks to software and expert back office support that automates the screening and application processes to secure these tax credits – in concert with your CPA or accountant – that boost your cash flow and after-tax profits.

    • Employee Retention Tax Credits (ERC) reward employers that had to close or reduce shifts due to COVID OR that suffered losses of only 20% of revenues (vs. 50% previously) due to the coronavirus and that re-hired furloughed employees or otherwise kept current employees on their payrolls. These credits have been extended through September 30, 2021 and were expanded from a maximum $5,000 credit per employee in 2020 to up to $21,000 per retained employee in 2021 for a combined potential savings of up to $26,000 per employee. They are also available retroactively to as far back as March 1, 2020 and apply to ALL employees – whether performing services for the employer or not – of employers with a 2019 average of up to 500 employees, a five-fold increase from the average of only 100 employees in the earlier CARES Act.  Even better, employers can now claim ERC tax credits in addition to having received Paycheck Protection Program (PPP) loans.  Under the 2020 CARES Act, PPP loan recipients were previously precluded from eligibility for ERC credits. 
    • The Work Opportunity Tax Credits (WOTC) that reward businesses with tax credits of up to $9,600 per new hire for recruiting from traditionally underemployed populations have been extended for five years under the Consolidated Appropriations Act of 2021.                                                                 
    • If all of this doesn’t turn your HR department into a profit center, R&D tax credits are available to many industries for qualified employee activities – especially in industries focused on upskilling – yet many eligible companies fail to claim them. Yours may be one of them.

Employee Retention Credits for manufacturers

And here’s the best part: Each of these – and all of these – employer incentives can be screened for, and eligibility confirmed, in one simple online Employer Incentive Management System that allows your business to determine before hiring whether a prospective employee is eligible for WOTC or other federal, state or local hiring incentives. This proprietary software screens for hundreds of them and  for the other HR incentives and tax credits outlined above.

For an instant initial estimate of how much these employer incentives can in new cash flow to your business, click the button below.