That one always grabs your attention. As the year’s end approaches, I want to remind you of two credits for employers. Although we’ve discussed them before, I’m not convinced that everyone is aware of them.
The first credit is new this year and applies to new employees hired after February 3, 2010, but before the end of this year. The credit amount is 6.2% of their wages up to $6,622 per employee. Not every employee qualifies. You can’t hire relatives, and the employee has to have been unemployed for 60-days prior to you hiring them. Additionally, you can’t fire them, just to hire them back in sixty days (I’m a step ahead of you!). You can review the form that the employee has to sign here: https://coregroupus.com/loc… Lastly, if you keep this employee for a full year, you receive an additional $1,000 credit.
Work Opportunity Credit
This one was put into law last year and applies to fewer people, but is still worth reviewing. Employers receive a credit of up to $2,400 per employee IF you hire the “right” people. The qualified employees are:
- Unemployed Veterans (Double Credit)
- Disconnected Youth
- Families receiving Temporary Assistance for Needy Families (TANF)
- Families receiving Food Stamp assistance
- Receiving Supplemental Security Income
- Resident in Designated Communities (Empowerment Zone, etc.)
I know this is not sexy stuff, but it is well worth double checking your employees to make sure you don’t qualify for this credits. They can add up quickly.
We Are Here To Help
We would love to help you with any of you bookkeeping, payroll or tax needs. Contact our offices in Oklahoma City: 405-720-1244 or Tulsa: 918-477-7650.