Year End Tax Credit Check-Up
Regardless of the outcome of upcoming efforts to renew WOTC and the tax extenders, it is advised that companies review their tax credit capture processes and procedures to enhance their participation and ensure maximum benefit realization. As a best practice, there are three things that employers should consider as they seek to implement and maintain effective tax credit processing workflows:
Is my tax credit capture program maximizing all available credits?
To this end, it behooves employers to closely review available Key Performance Indicators (KPI):
- Screening Compliance;
- 8850 Form/eSignature Compliance;
- Certification Rate
- Average certificate value
By increasing focus on these performance indicators, employers can benefit from greater tax credit capture without expending further corporate or personnel resources resulting in greatly enhanced return on investment.
Have I bundled my HR processes with my tax credit capture program?
In today’s business climate, HR processes are essential to managing and avoiding risk. By bundling HR processes like I-9 with tax credit capture processes, employers will experience greater tax credit generation while ensuring minimum risk and maximum compliance with mandated hiring workflows.
Have I given my locations and facilities a check-up for location-based tax credits?
Oftentimes employers overlook location-based incentives (“LBI”) opportunities, because of the myriad – and often confusing – plethora of state incentive programs available, and how each may “fit” with an organizations needs and tax position. However, on average, there are eleven location-based tax credit opportunities (per location) that go unleveraged resulting in significant lost opportunity costs in missed tax credits. These opportunities include: investment credits, hiring credits, negotiated incentives and more.
At Equifax Workforce Solutions, we remain diligent in identifying, tracking, and capturing both Federal and State tax credit programs – both nationwide and in specific client localities. If you have questions or would like our team of experts to help you evaluate your potential for all these tax credits, please contact us.