What are Some Tax Credits for Employers?
Litchfield, NH Business Owners Looks for Advice
As a small business owner there are some important tax credits that can save you money, including the Work Opportunity Tax Credit. This credit, worth up to $9,600 per employee, is for veterans, long-term unemployed individuals who have been actively looking for work for 27 weeks or longer, and those receiving assistance from TANF (Temporary Assistance for Needy Families) or SNAP (Supplemental Nutrition Assistance Program). Those small businesses that offer health care to employees may be eligible for the Small Business Health Care Credit, which can cover up to 50% of healthcare premiums paid by the company for employees’ healthcare.
A small business owner in Litchfield was wondering if she was missing out on tax credits available for employers. For advice, she contacted the team at Merrimack Tax Associates.
Employer Tax Credits Available for Small Businesses
Businesses can receive tax credits for employing certain workers under the WOTC (Work Opportunity Tax Credit) and offering healthcare benefits under the SBHCTC (Small Business Health Care Tax Credit). In addition, small businesses may qualify for tax credits for making their facility accessible to people with disabilities. Falling under the DAC (Disabled Access Credit), expenses for accessibility modifications including entrances, restroom modifications and other upgrades, may qualify for a tax credit. This is worth up to 50% of the qualifying expenses of up to $10,250, with a maximum annual credit of $5,000.
To encourage small businesses to continue to innovate, the R&D Tax Credit rewards those that invest in research and development. Expenses incurred when developing new products and services, improving existing ones, or increasing the business’ efficiency may receive a tax credit of up to 14% toward these costs.
The business owner in Litchfield was pleased to hear about all the tax credits that she may already be eligible for. With the help of Merrimack Tax Associates, she will be able to take advantage of these savings going forward, significantly reducing the amount of taxes paid.