Did you like how we did? Rate your experience!

Rated 4.5 out of 5 stars by our customers 561

Award-winning PDF software

review-platform review-platform review-platform review-platform review-platform

Video instructions and help with filling out and completing Why 8850 Form Credits

Instructions and Help about Why 8850 Form Credits

Hi, I'm Kelly. I would like to talk about smart payroll services. I'm Sean per Baker with gifts CPAs. We're here to present the work opportunity tax credit, better known as wattsy. So, what is wattsy? Wattsy is a federal tax credit available to employers who hire individuals from eligible target groups with significant barriers to employment. Hiring from these target groups can potentially reduce tax liabilities for employers. In fact, employers hiring these target groups may be eligible to reduce their federal income tax liability by as much as $9,000. Wattsy helps reduce an employer's cost of doing business while also providing opportunities for individuals in need to find and retain good jobs. As an employer, you get to make the decision on who you're hiring. Unlike many other state agencies, you have a list of people that you can hire from. By participating in wattsy, you also contribute to the success and growth of the US economy, benefiting all who participate and increasing America's economic growth and productivity. Now, let's understand how wattsy works. Any private sector business that hires a new employee from an eligible target group may apply for wattsy. Additionally, the tax credit is available to certain tax-exempt organizations that hire new employees from the wattsy veterans target group. This includes veterans, long-term or short-term Temporary Assistance for Needy Families recipients, Supplemental Nutrition Assistance Program recipients, designated community residents, vocational rehabilitation referrals, ex-felons, Supplemental Security income recipients, and summer youth employees. However, it's important to note that relatives and dependents of the employer and former employees, regardless of how long it has been since they last worked for the employer, are not eligible for the tax credit. If you're just finding out about wattsy and have recently hired an employee who qualifies, you cannot fire them...