Work tax credit reduces business income tax
Business owners taking advantage of the Work Opportunity Tax Credit can reduce their federal income tax liability up to $9,600 for hiring individuals from targeted groups.
Targeted groups include qualified job seekers who traditionally have difficulty finding employment, such as veterans, supplemental social security recipients, and ex-felons. In January, President Obama signed into law the American Tax Payer Act of 2012, which authorizes an extension of this tax credit program through Dec. 31, 2013.
The Department of Economic Opportunity Work Opportunity simplified the tax credit application by moving to an online, paperless system. Prior to the new electronic system, employers and consultants were required to mail the original signed copies of the tax credit forms and supporting documentation to the DEO.
The online system saves time and money by not requiring paper copies, and it has increased customer satisfaction by reducing the application processing time, in most cases, from one week to 24 hours.
DEO reports that the automation of the Work Opportunity Tax Credit program saved Florida businesses an estimated $26,469,600 in tax credits during calendar year 2012. During the same period for Manatee County, 1,591 certifications were issued totaling $11,064,000 in savings. The automated, secure, user-friendly process has made it easier for businesses to reduce their taxes while increasing the number of Florida residents gaining employment.
In March 2013, the team that designed and implemented the online system were the recipient of the Davis Productivity Awards. For more information about the Work Opportunity Tax Credit program, other tax credits and incentives, visit FloridaJobs.org.
Mary Helen Kress, President and CEO of Suncoast Workforce, a nonprofit corporation providing workforce services in Manatee and Sarasota counties, writes about workforce, employment and jobs issues affecting Manatee County.