The “Great Resignation” May Lead To Tax Savings
It seems that everywhere we turn we hear about the “great resignation” or the “great reset” or the “great renegotiation” or one of many other names that describes the large exodus from the workforce. If you are like most manufacturers, workforce continues to be one of your highest priorities. Companies are searching for solutions in various arenas as they attempt to work through their workforce challenges.
Work Opportunity Tax Credit
Many manufacturing companies are taking a second look at the Work Opportunity Tax Credit (WOTC).
When a manufacturer hires people from certain targeted categories and employs them for at least 120 hours, they can reduce their federal tax liability by $3,000 per eligible employee, on average. In many cases, manufacturers are finding that 25% of their incoming workforce qualifies, generating significant tax credits to offset their federal income tax liability.
As with many tax advantages, there are several regulations to follow to take advantage of WOTC. However, you don’t have to navigate it alone. You can visit CLAconnect.com to learn more and watch our short WOTC video.
Thank you to Jen Rohen and Matt Johnson who contributed to this post.
Allyson works for businesses of all sizes, maintaining a primary focus on business tax and consulting. She provides her clients with creative resolutions for technical tax issues and clearly interprets proposed and existing business tax law. Moreover, her thorough experience with trusts and estates allows her to deftly guide clients through the complicated legislation and the intricate processes involved in compliance, maximization of returns, and sustaining business and family wealth. She first gained knowledge and experience working for several years in a national firm, in a small firm environment, and in solo practice. She was also a partner in a regional legacy firm for 15 years prior to joining CLA. Her extensive tax experience bolsters CLA's talented staff and cultivates client relationships and makes her an invaluable member of the professional and civic communities.
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