As you know, tax credits are the best.
Suppose your business hires a member of a targeted group. In that case, you can claim the potentially lucrative federal Work Opportunity Tax Credit (WOTC) for some of the wages paid to the individual.
Here’s what you need to know to make the WOTC a tax saver for your business.
The credit generally equals 40 percent of qualified first-year wages paid to an eligible employee, up to a maximum wage amount of $6,000. That translates into a maximum credit of $2,400 (40 percent x $6,000).
Of course, some employees don’t work out. The tax code recognizes that and reduces the credit rate to 25 ... Log in to view full article.