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There are Billions in Business Tax Credits available from the US Government, are you filing and getting yours?

Wait.... Your telling me that my government will pay my business up to $9,800 for hiring military vets if they work 400 hours in a calendar year?

 

or I can get a kickback check for hiring a college seasonal worker up to $1200?

 

The answer is... Yes

However you also have to file these within 30 days of the employees hire date. Let us show you how. 

Dollar Notes

Knowing Your Tax Credits: Get Your Government Money Now!

 

There are hundreds of millions of dollars available, are you filing and getting yours? Most instances only one (1) out of four (4) companies are even filing and receiving these benefits. We often hear "Why didn't my CPA tell me about these if they are really available?". Well, because they don't know they exist or they just don't get paid to do that typically, that's why. 

 

Schedule a quick call today with a Carpfish Creative Advisor who will quickly determine what type of money you are leaving on the table as a small business owner. These are tax rebates, these are IRS created programs for the federal and state government set aside to better help small/medium business owners. As the world turns more and more to big corporate everyday, knowing these programs give you a powerful tool to compete. 

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Work Opportunity Tax Credit (WOTC)

Huge Credits are Available for Retail, Hospitality, Construction, Transportation, Security and More! 

WOTC is equal to 40% of up to $9,600 of wages paid to, or incurred on behalf of, an individual who:

  • is in their first year of employment;

  • is certified as being a member of a targeted group:

    • Unemployed or disabled veterans (Highest credit)

    • Temporary Assistance for Needy Families (TANF) Recipients

    • Food Stamp (SNAP) Recipients

    • Residents of Empowerment Zones or Rural Renewal Counties

    • Vocational Rehabilitation Referred Individuals

    • Re-Entering Ex-Convicts

    • Supplemental Security Income Recipients

    • Summer Youth Employees from Empowerment Zones

    • Qualified Long-Term Unemployment Recipients

  • performs at least 400 hours of services for that employer.

  • Thus, the maximum tax credit is generally $2,400. 

  • A 25% rate applies to wages for individuals who perform fewer than 400 but at least 120 hours of service for the employer. 

IMPORTANT! 

Most business owners and CPAs don’t know how to or have to file the WOTC paperwork within 28 days of the employee's first payday. WOTC is available for wages paid to certain individuals who begin work on or before December 31, 2025.

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Employee Retention Tax Credit (ERC)

Time is running out to file for the ERC Tax Credit. Carpfish Advisors work with ERC CPAs to help you claim your credit and receive your money quickly. (Expected turnaround time is 8-12 weeks).

For 2020-21, the employee retention credit (ERC) is a quarterly tax credit against the employer’s share of certain payroll taxes. The tax credit is 70% of the first $10,000 in wages per employee in each quarter of 2021 and the last three quarters in 2020. That means this credit is worth up to $7,000 per quarter and up to $28,000 per year, for each employee. In a quick summary:

  • Up to $26,000 per employee

  • Available for 2020 and the first 3 quarters of 2021

  • Qualify with decreased revenue or COVID event (Shipping delays, etc.)

  • No limit on funding

  • ERC is a refundable tax credit (Separate from PPP Loan)

  • ONLY 1 in 5 Small Business are filing for ERC. The Average ERC tax credit at the end of 2022 was $86,000 per small business. 

Who qualifies for the ERC?

There is a wide range of businesses that can meet the ERC eligibility requirements. Some of the industries that can meet the ERC eligibility qualifications include: Construction, Restaurant, Hospitality, Education, Government, Industrial, Not-for-profit, Real estate, Technology. Here is a link to the IRS overview form on the program. 

Do you think you qualify? 

Here is a link to the IRS overview form on the program. 

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TIPs Tax Credit for Servers

TIP Refunds available in: Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington

The Fair Labor Standards Act (FLSA) established several employment standards, such as overtime pay, rules for recordkeeping and child labor, and a minimum wage. Currently, the federal minimum wage is $7.25 per hour. However, the FLSA allows employers to pay their employees less than the standard minimum wage, provided that the employee earns enough in tips to make up the difference. The FLSA states that the minimum cash wage should be at least $2.13 per hour, although states set their own minimum cash wage (many of which pay more than that).

 

For instance, if we set our cash wage at the federal minimum of $2.13 per hour and the federal minimum wage is $7.25, then the tip credit would be $5.12 ($7.25 - $2.13). To calculate overtime tips, start by multiplying the standard minimum wage ($7.25) by 1.5 to represent time and a half, which would give you $10.80 ($7.25 x 1.5).

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