• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Choose a tax credit or employment tax exemption

by on
in Hiring,Human Resources

Q. My company is hiring workers who qualify for the new HIRE Act Social Security tax exemption. Can we claim the work opportunity credit for wages paid to the same workers? E.M.V., Baltimore

A. No. The Work Opportunity Tax Credit (WOTC) isn’t available if you claim the employment tax exemption for hiring previously unemployed workers. But you can elect to bypass the exemption in favor of the WOTC if it suits your needs.

For example, if you pay a worker $10,000 in 2010, you can save $620 in employment tax (6.2% of $10,000), but the WOTC for the same worker is generally $2,400 (40% of the first $6,000 in wages).

Tip: The HIRE ACT permits you to claim the special retention tax credit and the WOTC for the same worker.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/11993/choose-a-tax-credit-or-employment-tax-exemption "

Leave a Comment