TAX CREDITS FOR EMPLOYERS!

Don’t miss the opportunity to qualify for tax credits related to hiring qualified employees.  The Work Opportunity Tax Credit (WOTC) originally expired at the end of 2011 but the recent fiscal cliff act provided business tax extenders for this and certain other credits for 2012 through 2013.  The credit allows employers to claim WOTC for members of a targeted group.Targeted group employee. An employee is a member of a targeted group if he or she is a:• Long-term family assistance recipient,• Qualified recipient of Temporary Assistance for Needy Families (TANF),• Qualified veteran,• Qualified ex-felon,• Designated community resident,• Vocational rehabilitation referral,• Summer youth employee,• SNAP recipient, or• SSI recipient.In general, the credit allowed is 40% of the first $6,000 of qualified wages paid per employee.  However, the credit can be as high as $9,600 per qualified veteran for for-profit employers or up to $6,240 for qualified tax-exempt organizations, but the amount of the credit will also depend on a number of factors, including the length of the veteran’s unemployment before hire, the number of hours the veteran works, and the veteran’s first-year wages.An eligible employer must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their respective state workforce agency within 28 days after the eligible worker begins work.  The current statute does not provide relief for employers who failed to submit this form timely in 2012. If any relief becomes available, we will update this notice!  For 2013, the credit is available and provides great benefit for employers looking to hire.For more information about the Work Opportunity Tax Credit or other business extenders from the fiscal cliff legislation contact your tax advisor. Bryan Bornhoft is a CPA and Partner at HG&K, Ltd., a public accounting  firm located in Minnetonka, MN.  HG&K serves clients in the metro and throughout Minnesota.  Bryan can be reached via e-mail at bbornhoft@hgkcpa.com or his direct line 952 979-1153.  Also, check out www.hgkcpa.com for more information about HG&K, Ltd.