Maximizing Your Tax Credit Program |
How confident are you that you are reaching your tax credit potential?
Some statistics from a recent Area Development Magazine and Location Management Services may surprise you:
- 86% of those surveyed aren’t sure they are collecting all available incentives
- 87% believe their incentives process needs improvements
- Today, tax credits available for employers may include as much as:
- $2,400 for each new adult hire
- $1,200 for each new summer youth hire, and
- $9,000 for each new long-term family assistance recipient hired over a two-year period
However, even for companies who are doing some form of tax screening, no program will be truly effective without the support, participation, and compliance of ALL of your staff.
Below are some simple recommendations to improve your organization's credit participation and screening compliance.
- Communicate the financial impact of credits. Program compliance improves when regional and district management understands the positive impact of tax credit management and communicates this to store management.
- Establish and communicate corporate goals.
- Have every interviewed applicant complete the applicable tax credit forms for tax credit programs currently in place. Make sure the IRS Form 8850 is part of your application process.
- Utilize our electronic forms for WOTC and other state and federal tax credits.
- Designate a full or part-time employee at Corporate to assist with tax credit and incentive follow-up.
- Follow-up on and mail any requested documentation as soon as it is received; this will help streamline the process.
- Require a control or confirmation number for managers to have new hires entered into your company’s payroll system.
- Incorporate tax credit compliance results into District Manager and Store Manager reviews. One aspect of their reviews could be how well they are complying with your organizations tax credit procedures. Our experience has been that program compliance numbers improve when management is held accountable for program success.
- Have District Managers review program results reports with Store Managers and incorporate the tax credit process into the District Manager’s store audit checklists.
- Notify your GIS dedicated Account Manager of new store locations and openings to discuss possible modified screening procedures.
- Make sure tax credit training is incorporated into training for all new managers and provide additional and recurring training as needed for current managers.
- Make tax credits a regular topic of discussion at manager meetings.