Owning and operating a small business has never been easy. Recently between COVID, supply chain issues, rapidly increasing costs and labor shortages the challenges small business owners face are more daunting than ever.
But there is always hope and opportunity, sometimes from the most unlikely of sources, like the IRS and the Work Opportunity Tax Credit.
What is the Work Opportunity Tax Credit or WOTC? Simply put it is a tax credit that a business can apply for when the hire employees that are part of ten targeted groups, such as unemployed veterans, long term unemployment recipients, supplemental social security (SSI) recipients and supplemental Nutrition Assistance Program (SNAP) recipients. The full list can be viewed at https://www.irs.gov/newsroom/for-national-small-business-week-special-tax-credit-can-help-employers-hire-workers-key-certification-requirement-applies
In order to earn the credit, the employer must first certify the newly hired worker through their state workforce agency within 28 days for their being hired. After certification the employer can claim their WOTC on their year-end federal tax return.
And if one of the challenges your small business is facing is a tax issue with the IRS or New York State the attorneys at Beige Law, PLLC are here to help. The sooner you commit to solving your tax issue the sooner you can get back to running and growing your business.