With the cost of doing business consistently on the rise and as it becomes more difficult to find/retain great employees, companies are turning to staffing agencies to assist them with their employment needs. This is great for staffing agencies and there is no better time to pursue employment-based tax credits than now. There are both federal and state employment-based credits available that can help businesses offset income tax liability. Some of these programs are based on the creation of net new jobs while others are offered to employers for employing individuals from specific target groups. The most popular of these programs is the Federal Work Opportunity Tax Credit (WOTC).
One of the most valuable tax credit programs overlooked by businesses is employment tax credits. Many companies believe they would not benefit from this tax savings strategy due to the background of employees they hire or the complexity of employment incentive programs.
**This case study is an amalgamation of CTI client success stories – based on real-life outcomes – to showcase a balanced, conservative perspective in the interest of not inflating numbers or empty promises.