Why 8850 Form Incentives 2016-2024

Most employers are not aware of the many tax incentive programs available to help companies hire and keep employees. Hiring incentives have been a vital part of our country's economy since the 1940s when the GI Bill was used to incentivize employers to hire the fifteen point seven million veterans returning from World War two and to save our country from an otherwise projected unemployment rate of about 25%. At that time, most hiring incentives were focused on veterans returning to work after periods of service. This continued to be the main focus for hiring incentives until the 1970s and 1980s when the focus was expanded to include ex-felons and welfare recipients. In the late 1990s, job creation became the focus for hiring incentives and the Work Opportunity Tax Credit was created to help millions of Americans find jobs and give businesses tax incentives while reducing the burden on government entitlement programs and saving US taxpayers billions of dollars in the process. The Work Opportunity Tax Credit is a federal tax credit available to employers who hire veterans and individuals from certain target groups who have faced substantial hardships and remained consistently underemployed. Although the tax credit was set to expire in 2015, the PATH Act extended the Work Opportunity Tax Credit. Employers claim billions of dollars each year in tax credits under the Work Opportunity Tax Credit program, and on average, 10 to 20 percent of their new employees will qualify for the Work Opportunity Tax Credit with an average credit of $2,400 per qualified new hire. Historically, the steps necessary to qualify have been time-consuming and burdensome. However, our technology and process relieve employers of 90% of this burden by automating most of the steps involved in pre-screening and certifying candidates before hiring and streamlining the submission of...