Tax Incentives Turn HR into a Profit Center
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.
The infrastructure bill approved by the Senate on August 10, 2021 (H.R. 3684) would terminate the Employee Retention Credit early, making wages paid after Sept. 30, 2021 ineligible for the credit (except for wages paid by an eligible recovery startup business). Click the button below for more on this…
- Employee Retention Tax Credits (ERC) that reward employers that suffered losses of only 20% of revenues (vs. 50% previously) due to the coronavirus and that re-hire furloughed employees or otherwise keep current employees on their payrolls have been extended through to December 31, 2021 and expanded from a maximum $5,000 credit per employee in 2020 to up to $28,000 per retained employee in 2021 for a combined potential savings of up to $33,000 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.
To learn how these can all be combined into a tax-leveraged Recruiting Roadmap to help subsidize your recruitment, retention and training/retraining priorities, click the button below…
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 outlined above.
For an instant initial estimate of how much these employer incentives can add up to in new cash flow for your business, click here.