Few California businesses realize that they can take advantage of work opportunity tax credits provided to them at the state and Federal levels, but those that do realize tremendous tax advantages. If you are unsure whether or not your company might qualify for these hiring tax credit options, be sure to contact a certified public accountant with experience with work opportunity tax credits, also called wotc california, who can take a look at your company and see where you may find the best tax deductions and credits.
The first step your certified public accountant will take is to determine whether or not your company is in a California Enterprise Zone. There are forty-two Enterprise Zones located throughout the state, and they represent areas in the state that are economically disadvantaged. People living in these zones often have a hard time finding work, and so if you have a business where you are located in an Enterprise Zone and are hiring residents of the zone as well, you will qualify for a hiring tax credit, because the state and Federal governments want to encourage businesses to take up residence where they can do a great deal of good in providing jobs to people who need them.
Your company may qualify for a hiring tax credit if you hire people in need of work in the following categories: those who have been laid off or have been threatened with a layoff, Native Americans and Pacific Islanders, qualified disabled veterans, veterans who qualify for food stamps, summer youth hires as well as those age eighteen to forty in the Enterprise Zones. You may also earn a hiring tax credit when you offer work to qualifying ex-felons, people who have recently qualified for SSI, food stamps or temporary assistance for needy families, and qualifying disconnected youth between sixteen and twenty-five years old. If your company can provide work to people within these groups, your company may then qualify for up to $13,000 per employee each year in Enterprise Zone hiring tax credit. Another tax advantage that your business may gain through the hiring tax credit is that you can go back in your tax returns for up to three years to claim these Enterprise Zone hiring tax credit benefits, and if you cannot use all of the work opportunity tax credits in a current year, likely you will be allowed to carry the credits over to the next year.
The earlier you learn about wotc California and hiring tax credit benefits, the sooner your company can reap the rewards. A CPA knowledgeable about work opportunity tax credits can help you with your corporate tax planning and help you save money this tax season.
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Enterprise zone tax credits have been designed as an incentive for business to locate in these troubled neighborhoods and hire those who might not otherwise have such opportunities. Many states offer similar benefits, and the program is not new; urban enterprise zones are to be found in many cities and rural areas across the U.S.
