Meeting tax credit deadlines is essential to capturing valuable savings. Two key credits, the Work Opportunity Tax Credit (WOTC) and the Empowerment Zone Employment Credit (EZEC), offer significant benefits to staffing agencies, but come with specific filing requirements and timelines. Both programs are currently extended through December 31, 2025, meaning timely filings can reduce taxable income and strengthen your bottom line.
Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit is a federal incentive for employers who hire job seekers from certain groups who may face employment barriers. These groups include veterans, certain community residents, and long-term unemployment recipients, among others. To qualify for the credit, staffing agencies must apply for a certification confirming that a new hire belongs to one of these groups.
Handling WOTC filings can be challenging, given the strict 28-day window after hiring a qualifying employee. At MJA & Associates, we manage all the certification and documentation requirements to ensure you meet these deadlines and maximize your credit opportunities without added administrative work. Our expertise lets you take full advantage of this credit while minimizing your workload.
Empowerment Zone Employment Credit (EZEC)
The Empowerment Zone Employment Credit encourages businesses to hire and retain employees who live in designated urban and rural areas, supporting economic growth in communities that need it most. This credit provides a wage-based tax benefit for qualified employees who meet specific criteria and work for at least 90 days during the year.
Determining eligibility and meeting requirements for the EZEC can be complicated, especially for agencies managing both part- and full-time employees. With MJA & Associates handling eligibility verification and record-keeping, we ensure you fully benefit from this credit while maintaining compliance with tax regulations. Our team takes care of all documentation and calculations, freeing your staff from complex paperwork.
The Benefits of Partnering with Tax Credit Experts
Navigating tax credit timelines and compliance requirements can be time-intensive and complex for staffing agencies, especially as regulations evolve. Working with MJA & Associates offers several advantages:
· Maximized Savings: We identify all eligible credits for your agency, ensuring you capture the full range of potential savings.
· Accurate, On-Time Filings: Our specialists handle the entire filing process, ensuring compliance and reducing the risk of missed credits.
· Focus on Your Business: By managing all aspects of tax credit filings, we allow your team to concentrate on core business functions rather than administrative tasks.
Let MJA & Associates Handle Your Tax Credit Filings
MJA & Associates offers a streamlined approach to capturing tax credits, tailored to the specific needs of staffing agencies. We keep up-to-date on all tax programs and regulations, ensuring your agency benefits from every opportunity to save. If you want to maximize your tax savings and stay organized—reach out today to get started.
