Video instructions and help with filling out and completing When 8850 Form Recipients

Instructions and Help about When 8850 Form Recipients

The Work Opportunity Tax Credit also known as wattsy is a federal income tax credit program available to employers of any size watse incentivizes businesses for hiring and retaining individuals from specific targeted groups who have consistently faced significant barriers to employment people such as ex felons certain veterans and those receiving SNAP benefits and in 2021 a new targeted group was created for the long-term unemployed employers claim about a billion dollars a year in tax credits under the wattsy program on average we find that between 10 and 20 percent of our clients new employees will qualify for the wattsy credit with an average credit of $2,400 per qualified new hire this could result in significant tax savings and there is no limit to the size of the credit you can take take advantage of this credit could significantly offset federal income tax liability for your business and for pass-through entities the credit will flow through to the owners the main challenge in taking the watse credit is the 28-day rule this rule specifies that each application must be completed and submitted within 28 days of the new hire starting date in fact one of the forms must be completed prior to extending an offer of an employment businesses have a very short window to take advantage of this credit so it's crucial to incorporate wattsy screening early in your hiring process in order to facilitate compliance finally don't assume that your business may not qualify to take advantage of the Work Opportunity Tax Credit we've found that many of our clients routinely make qualified new hires whether they know it or not and their business was eligible to take the credit there are three keys to successful watse process screen all new applicants to the term if they qualify have a formal wattsy process in place you can meet the deadline and make the process as easy as possible for the employees once you have a set process in place this becomes not only easy to manage but can add significantly to your bottom line by taking advantage of this federal tax credit opportunity.

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