On March 1, the Internal Revenue Service issued an important new employee retention guidance that illustrates important credit and retention options available to businesses that hire employees and the employee who is eligible to receive the credit. The guidance (Issued 3/1/2014) provides companies with crucial information about the employee retention credit and explains the complex…
On July 20, 2015, the IRS issued Notice 2015-49, which provides guidance on Section 45S of the Internal Revenue Code. This section allows employers to claim an employer credit equal to up to 25% of the eligible wages paid to their employees during the first two years of employment. The credit can also be claimed…
If you’re an owner employee, the new tax credit incentive designed to keep employees with your business for at least one year may not be as beneficial as you’d hope. The reason? If you have living family members when you hire an employee, the amount of tax credit that applies to you will be less…
U.S. employers with at least 10 full-time employees have a number of options when it comes to rewarding their employees for staying with the firm for a set period of time. One is the pension retention allowance (PRLA). This is a generous employee bonus—one of the top five in U.S. companies. Most PRLA plans are…
Any bonus given to a company’s employees is a transfer from taxpayers to its business partners. To make sure that American workers receive all of their due, the Internal Revenue Service (IRS) requires employers to withhold 30 percent of compensation and pay that amount into the employee’s pay check. As a result of the Earned…
Before discussing anything, let’s see what is ERC, WOTC, and some other terms. Let’s begin. Employee Retention Credit A tax credit of up to $2,100 can be provided for the cost of tuition, course materials and other educational expenses in return for either 100 percent of expenses directly to the employee for tuition, a reasonable…
