Leverage Tax Credits and Incentives to Help Lower Your Effective Tax Rate
ADP Tax Credit and Incentive Services
There are numerous job tax credits and other business incentives available to companies today. These credits are crucial to help offset your increasing costs as they can lower your effective tax rate. But, it can be difficult to identify and capture all the available business incentives.
You deal with:
It is difficult to identify all tax credits and incentives for which you are eligible.
The work opportunity tax credit screening process can be difficult for managers and applicants.
Maintaining compliance is complex and time-consuming.
These challenges stand between you and your lowest possible tax rates. To help overcome them, you need to:
ADP offers the industry's most comprehensive tax incentive program for your company based upon company objectives, employee demographics, and geographic locations.
|You need to…
||With ADP Tax Credits, you can get…
|Claim and Keep All Available Credits
Identify all available tax credits and business incentives and then capture and defend them.
Robust identification and eligibility for your specific business circumstances.
- Dedicated practice focused exclusively on maximizing tax credit capture
- Hundreds of specialists
- Database of approximately 3000 incentives
- Proprietary mapping software for geographic zone eligibility
|Increase Eligibility Rates for Employment Tax Credits
Employ inclusive screening practices that can identify tax credit opportunities in multiple categories.
Maximize tax credit capture while streamlining your hiring process.
- Integrates with your current hiring process
- Inclusive, multi-category screening
- Flexible screening options: web, IVR, call center and mail
|Monetize Your Development Efforts
As your business expands, improves or consolidates, you need to monetize available economic development incentives..
Potential to increase the ROI on your projects by identifying and negotiating the best incentive package before you dig.
- Research and incentive value analysis
- Negotiate an incentive package
- Handle administration to help ensure credit capture
Take full advantage of the available tax credits and incentives available for your business to help achieve your lowest tax rate.
More information about ADP Tax Credit and Incentive Services
Employment and Hiring Tax Credits
Are you taking advantage of tax credit opportunities as you hire new employees? If not, you may be missing out on the chance to boost your bottom line.
ADP can efficiently help drive credit tax credit capture through integration with your current hiring process by enabling you to:
- Identify available credits
- Screen employees and process eligibility forms
- Monitor and manage screening compliance and form compliance
- Submit forms to state agencies for tax credit certification
- Calculate credits
- Document eligible expenses and produce a detailed audit trail
Work Opportunity Tax Credits (WOTC)
This program provides an incentive to employers to hire and retain employees based on targeted groups, including social assistance recipients, veterans and qualified youth. Qualifying businesses can receive a tax credit of up to $2,400 per eligible employee during the first year of employment.
Target groups have seen recent expansion, both in the number of categories in the program, as well as the number of Americans within categories that now qualify – including the 45 million receiving food stamps. This will increase the qualification rates for companies and increase credits for employers.
ADP helps you manage your tax compliance risk and capitalize on new credits with our legislative updates.
The Welfare-to-Work category within WOTC provides a credit for eligible employees during the first two years of employment. The credit provides an incentive to employers to hire and retain employees who have received long–term welfare and family assistance for 18 consecutive months, either through Temporary Assistance to Needy Families (TANF) or Aid to Families with Dependent Children (AFDC).
Other State Employment Based Credits can include:
- State Point–of–Hire credits
- Job Creation Credits
ADP's solution for Employment and Wage–based Tax Credits identifies geographic and demographic tax incentives through:
- Location eligibility determination
- Employee eligibility screening
- Form processing
- Calculation of credits
Flexible Screening Options
ADP efficiently works tax credit screening into your existing hiring program. With four types of screening available — web, IVR, call center, and mail — businesses of all types can now effectively screen their new hires to determine tax credit eligibility. ADP has integrations available for many Applicant Tracking Systems which helps to increase the efficiency of screening and data transfer during the screening process, raising screening rates while maintaining compliance with federal filing rules.
ADP leverages technology to streamline the screening process and can present a pre–populated form ready for the employee's signature.
More information on Employment Tax Credits and Work Opportunity Tax Credits (WOTC)
Geographic and State Tax Credits
Billions of dollars in tax savings available
ADP's Tax Credit Services business is the largest and most established practice of its kind, focused exclusively on maximizing tax credit and incentives for clients. Our hundreds of specialists are dedicated to help drive credit and incentive value. They leverage a database of approximately 3000 incentives and employ proprietary mapping software to determine geographic zone eligibility to help maximize your credit value.
Federal Empowerment Zones (EZ) and Renewal Communities (RC) Employment Credits and Tax Benefits
Incentives are available to employers who hire and retain employees residing in a Federal Empowerment Zone or Renewal Community. You may be able to capture tax credits of up to $3,000 per eligible employee in Federal Empowerment Zones and up to $1,500 per eligible employee in Federal Renewal Communities.
Federal Indian Employment Credit
Provides an incentive to employers to hire and retain Native Americans. You may be able to capture tax credits of up to $4,000 per eligible employee.
State Credits & Incentives
Almost every state offers tax credits and incentives to businesses participating in certain economic activities. State tax credits are generally taken against state income tax liability accrued in that state. You may be eligible for tax credits for the following:
- State Enterprise Zones – various tax credits are available to businesses located in state designated enterprise zones – credits can include job creation and investment tax credits.
- State Property Tax Credit – businesses located in state enterprise zones may qualify for property tax exemptions and abatements
- State Investment Tax Credits – credits may be available for certain types and amounts of investments in the state – many of these credits are industry specific
- State training and jobs credits – credits may be available for companies investing in job creation and training
Learn more about Federal & State Tax Incentives and the Georgia Retraining Tax Credit
Economic Development Incentives
Recognize. Maximize. Monetize.
Whether you are locating, expanding, relocating, or consolidating anywhere in the US, ADP can help you increase the return on your investment for those projects by helping you meet strategic goals, negotiating incentives and administering the award package.
ADP is your partner in the economic development process, helping you to:
- Research and incentive value analysis
- Negotiate an incentive package
- Handle administration to ensure credit capture
ADP's Economic Development group has been responsible for numerous successful site location and retention projects involving incentive awards in excess of $2 billion. Our team of experts can provide a complete turn–key program of location selection services and incentives, including identification, negotiation, documentation, reporting and compliance.
If your company is expanding, consolidating or closing facilities, adding equipment, training employees, or adding jobs, ADP can help reduce your costs by up to 25% with negotiated incentive packages. The final incentive package can contain "above the line" savings, such as cash grants, property tax abatements, sales tax exemptions, utility rate reductions, infrastructure grants, subsidized land or buildings, low–cost financing, fee waivers, and wage subsidies.
Negotiating the package determines the value, but it takes a sound administration process to actually turn the agreement into captured credits. ADP is unsurpassed in compliance administration and processing, helping to ensure you receive and retain the awards you deserve. Working with various State Economic Development Authorities on your behalf, ADP can handle every aspect of your incentive programs, from application through administration. We're committed to help your company receive the incentives it deserves.
ADP's tax credit experts have extensive training credit experience and work with our clients to help maximize their potential tax incentives for training. Our comprehensive training incentive program helps ensure that your company receives the optimal grant funds needed to train and upgrade your workforce. At the same time, our training incentive program can simultaneously qualify your company for all available employment and training tax credits at the state and federal levels.
Learn more about Economic Development Incentives
* Estimates based on data compiled by U.S. Department of the Treasury, Office of Tax Analysis