After months of negotiations, the massive COVID relief bill was finally passed by Congress and is ready for the President’s signature. Among others, several provisions in the new bill will greatly benefit hourly employers:
- PPP second draw – 100% forgivable loan
- Restaurants can access 3.5x payroll – other businesses remain at 2.5x
- Greater flexibility in accepted uses of PPP loans – including inventory costs
- Expanded Employee Retention Tax Credits (ERTC)
- Business meal deduction expanded to 100% for the next two years
- Enhancements to other critical SBA lending programs
- Five-year extension of Work Opportunity Tax Credit (WOTC)
- Five-year extension of the Empowerment Zone tax credit
- One-year extension of the Indian employment tax credit
Why are the employment tax credit extensions so important?
Before COVID-19, approximately 20%-25% of your new hires were eligible for WOTC. Now, due to COVID-19, 25-35% of your new hires will be eligible for WOTC! WOTC provides significant tax credits to employers who hire individuals that are part of certain target groups. This includes Veterans, SNAP (food assistance), long-term unemployed, and more.
Hiring workers who are in the most need is a win for both the employee and your business. And qualifying for the WOTC is an added bonus. Depending on the WOTC target group, your business will earn up to $9,600 per eligible new hire!
If you are not taking advantage of WOTC, let us show you how we automate the process. The manual paper process can be confusing and overwhelming, so it is important to consult an expert like Efficient Hire for assistance. Rest assured there is no additional work for your Managers or your HR Administrators, we take care of the entire process, and you reduce your income tax liability significantly!
Get in touch with our sales team today to learn more about the COVID relief bill, Work Opportunity Tax Credit Program, or other employment tax credits that have been renewed.