Tax Credit & Hiring InCentve News

A Comprehensive Guide to Boosting Your Small Business's Bottom Line with Tax Credits, Part 4

Mon, 18 Dec 2023 18:12:05 GMT

In our exploration of tax credits' transformative potential for small businesses, we've covered federal credits like the Work Opportunity Tax Credit (WOTC) , Research and Development (R&D) Tax Credits , Solar Investment Tax Credit (ITC) , Small Business Health Care Tax Credit, Retirement Plans Startup Costs Tax Credit, and Federal Empowerment Zone Credit.

To learn more about these various credits, read the blog post “A Comprehensive Guide to Boosting Your Bottom Line with Tax Credits, Part 3.”

Here, we’ll wrap up our comprehensive guide with a look at the unique state and local tax credits that are available to small businesses. Note, that for a full list of what is available in your area, we encourage you to check out your state’s official government website.

State and Local Tax Credits

In addition to federal incentives, small businesses can uncover a wealth of opportunities at the state level, where various tax credits and incentives aim to bolster local economies and encourage business growth.

While the specifics can vary widely from state to state, exploring these possibilities is key to maximizing savings and fostering a favorable business environment.

Job Creation Tax Credits

Many states offer credits to businesses that create new jobs within their borders. These credits often depend on factors such as the number of jobs created, the wages offered, and the industry in which the business operates.

Investment Tax Credits

Some states provide credits for investments in specific industries or technologies. These incentives are designed to stimulate economic growth, particularly in sectors that align with the state's economic development goals.

Research and Development Credits

Similar to the federal R&D tax credit , several states offer their versions to encourage innovation and technological advancement within their jurisdictions. Small businesses engaged in qualifying research and development activities may be eligible for these credits.

Energy Efficiency Credits

States often promote energy efficiency initiatives by offering credits to businesses implementing energy-saving measures or using renewable energy sources. This not only supports environmental sustainability but also reduces operating costs for businesses.

Enterprise Zone Credits

Many states designate certain geographic areas as enterprise zones to stimulate economic development. Businesses operating within these zones may qualify for various credits, including tax abatements and job creation incentives.

Training and Education Incentives

Some states encourage businesses to invest in employee training and education by providing tax credits. These incentives aim to enhance workforce skills and contribute to the overall economic development of the state.

Louisiana’s Effort to Enhance Workers Skills Through the Youth Job Credit

In Louisiana, the Youth Job Credit is a perfect example of how the state is taking charge of enhancing the skills of its workforce. This nonrefundable tax credit is designed to motivate businesses to hire eligible youth, providing financial benefits while empowering young individuals to enter the workforce. The program targets specific eligibility criteria, including age, prior unemployment, minimum weekly hours, and qualifying factors such as involvement in assistance programs or experiences with the justice system.

The credit offers varying amounts based on employment status, providing $1,250 for full-time and $750 for part-time positions. This initiative not only addresses immediate employment needs but also aims to empower Louisiana's youth for long-term success.

The introduction of the Louisiana Youth Job Credit marks a significant stride in reducing youth unemployment and positively impacting the state's economy. By encouraging businesses to hire eligible youth, the program not only provides valuable work experience and income but also targets specific groups facing challenges in education, housing instability, or involvement with the justice system.

California New Employment Credit Offers New Hire Tax Savings

The California New Employment Credit (NEC) serves as a strategic state tax credit, aiming to boost economic growth by encouraging businesses to hire employees from specific targeted groups confronting employment challenges. Similar to WOTC, this credit applies to qualified employees belonging to designated categories, including individuals receiving public assistance, veterans, and ex-felons, fostering diversity and inclusivity in the workforce.

The credit is calculated as a percentage of qualified wages paid during the employees' first 5 years, with varying rates based on factors like hours worked and employment status. Businesses must understand the limitations of the NEC, including a cap on the total credit amount per qualified employee and restrictions on subsidized wages through other programs. However, the credit offers flexibility with a carryover provision, allowing businesses to apply for any unused credit in subsequent years.

By participating in the NEC program, businesses not only gain financial benefits but also actively contribute to community development and the overall well-being of targeted groups within the state of California.

When small businesses strategically leverage the plethora of tax credits at their disposal, they can enhance their financial resilience, foster a supportive workplace culture , and navigate the evolving landscape with greater flexibility and stability.

OnCentive Can Help You Unlock Small Business Tax Savings

To uncover the full spectrum of income tax credits and state-specific opportunities, businesses are encouraged to engage the assistance of a consultant to coordinate with state revenue departments, economic development agencies, or specialized consultants familiar with the intricacies of local tax incentives, like OnCentive .

Staying informed about available credits can empower small businesses to make strategic decisions that positively impact their bottom line while contributing to the economic prosperity of the communities they serve.

A Comprehensive Guide to Boosting Your Small Business's Bottom Line with Tax Credits, Part 3

Mon, 11 Dec 2023 20:13:59 GMT

As we journey through the realm of tax credits, we've uncovered the transformative potential they hold for small businesses. In our previous blog post , we explored the Work Opportunity Tax Credit (WOTC) , the Research and Development (R&D) Tax Credit , and the Solar Investment Tax Credit (ITC) . These insights have illuminated the diverse avenues through which businesses can not only foster inclusivity, innovation, and sustainability but also reap substantial financial rewards.

To learn more about these differences, read the blog post “ A Comprehensive Guide to Boosting Your Bottom Line with Tax Credits, Part 2 .”

Now, we’ll dive deeper into the landscape of tax benefits, shedding light on healthcare, retirement, and Federal Empowerment Zone credits. These credits offer not only financial advantages but also opportunities for businesses to contribute meaningfully to employee well-being and community development.

Small Business Health Care Tax Credit

The Affordable Care Act, often referred to as Obamacare, introduces a valuable health insurance tax credit tailored for small businesses.

How Does the Small Business Health Care Tax Credit Work?

The Small Business Health Care Tax Credit serves to incentivize employers to either initiate health insurance coverage for their employees or sustain existing coverages.

The Affordable Care Act's health insurance tax credit represents a progressive step towards fostering a culture of employee well-being within small businesses. By encouraging the provision of health insurance, this credit not only aligns with the broader objectives of healthcare accessibility but also recognizes the pivotal role of businesses in contributing to the overall health and welfare of their workforce.

Qualifying for the Small Business Health Care Tax Credit

This credit offers qualifying businesses and nonprofits the potential to receive a credit of up to 50% (35% for nonprofits) of the costs incurred for their employees' premiums (excluding business owners).

To be eligible, businesses must enroll in a Small Business Health Options Program (SHOP) plan , and meet all of the following requirements:

You have fewer than 25 full-time equivalent (FTE) employees
Your average employee salary is about $56,000 per year or less
You pay at least 50% of your full-time employees' premium costs
You offer SHOP coverage to all of your full-time employees. (You don't have to offer it to dependents or employees working fewer than 30 hours per week to qualify for the tax credit.)

As small businesses navigate the intricate landscape of healthcare benefits, this tax credit serves as a tangible and impactful tool for both employers and employees alike, promoting a healthier, more secure working environment.

Retirement Plans Startup Costs Tax Credit

The Retirement Plans Startup Costs Tax Credit holds significant importance for small businesses as it provides a financial incentive to encourage them to initiate and maintain retirement savings plans for their employees.

How Does the Retirement Plans Startup Costs Tax Credit Work?

Small businesses, often operating with limited resources, may hesitate to establish retirement plans due to associated startup costs. This tax credit alleviates some of the financial burden by allowing eligible employers to claim a credit of up to $5,000 for 3 years to offset the ordinary and necessary costs of starting:

Simplified Employee Pension (SEP) plans
Savings Incentive Match Plan for Employees (SIMPLE)) plans
Qualified plans, including 401(k) plans.

Qualifying for the Retirement Plans Startup Costs Tax Credit

To qualify, employers must meet criteria related to the number of employees, compensation, and the absence of substantially similar plans in the preceding 3 years. The credit amounts to 50% of eligible startup costs, with specific calculations based on factors like the number of non-highly compensated employees (NHCEs).

Eligible costs include setting up and administering the plan, as well as educating employees about it. The credit can be claimed in the first 3 years of the plan, starting from the tax year before its effective date. Notably, employers cannot simultaneously deduct startup costs and claim credit for the same expenses. Additionally, employers incorporating an auto-enrollment feature can qualify for an additional tax credit of $500 per year for a 3-year taxable period.

Benefits for Businesses

By offering this credit, the government aims to promote retirement savings and financial security for employees in the small business sector. Access to retirement plans can enhance the overall compensation package offered by small businesses, making you a competitive choice when attracting and retaining talented employees.

Additionally, it contributes to the broader societal goal of encouraging responsible retirement planning, ensuring that individuals have the means to support themselves in their later years. Overall, the Retirement Plans Startup Costs Tax Credit serves as a valuable tool to foster employee well-being, enhance small business competitiveness, and promote long-term financial stability.

Federal Empowerment Zone Tax Credit

To stimulate economic growth and revitalization in designated distressed communities, the Federal Empowerment Zone Credit (FEZ, also known as Fed EZ) stands as a powerful tool for businesses seeking impactful tax benefits while contributing to community development.

Empowerment Zones (EZ) are specially designated geographic areas that face economic challenges, often characterized by high unemployment and poverty rates. The federal government identifies these zones to encourage investments and job creation, aiming to uplift the community and enhance its overall well-being.

How Does the Federal Empowerment Zone Credit Work?

Businesses operating within Empowerment Zones can qualify for substantial tax credits. The credit is often based on the employment opportunities created, making it a win-win scenario for both businesses and the community. Employers can claim a credit against their federal income tax for each eligible employee who lives and works in these designated zones.

Benefits for Businesses

Substantial Wage Credit: Businesses can claim a significant credit, often up to $3,000 per eligible employee per year, against their federal income tax. This not only reduces tax liabilities but also provides financial incentives for hiring individuals residing in these distressed communities.

Enhanced Deductions: Beyond wage credits, businesses may also benefit from enhanced deductions on qualifying equipment or property located within the Empowerment Zones. This can further optimize the overall tax position of the business.

Qualifying for the Federal Empowerment Zone Credit

To qualify for the Federal Empowerment Zone Credit, businesses must conduct business within the federally designated boundaries, and hire residents of the same empowerment zone. It is essential to understand the unique requirements associated with each designated zone. Ensuring compliance with these criteria opens the door to significant tax advantages while contributing to the renewal and prosperity of the community.

A Dual Impact on Business and Community

The Empowerment Zone Credit presents a unique opportunity for businesses to align their growth objectives with community development goals.

By taking advantage of this credit, businesses not only maximize their tax benefits but also play a vital role in revitalizing distressed areas, fostering a sense of community, and creating lasting positive change. This dual impact makes the Empowerment Zone Credit a strategic choice for businesses committed to both financial success and social responsibility.

For small businesses, these lucrative tax credits provide financial incentives for businesses initiating retirement plans, healthcare plans, or are in Federal Empowerment Zones. These tax credits are a powerful tool for fostering community development and offering substantial tax benefits for businesses operating in designated distressed areas.

In our next post , we will navigate the terrain of state tax credits, shedding light on how businesses can leverage these credits for financial advantages while contributing meaningfully to employee well-being and community development.

OnCentive Can Help You Unlock Small Business Tax Savings

A Comprehensive Guide to Boosting Your Small Business's Bottom Line with Tax Credits, Part 2

Mon, 04 Dec 2023 21:12:56 GMT

Navigating the intricate landscape of tax credits is essential for unlocking substantial savings for your business. In our last blog post, we established the fundamental difference between tax credits and deductions, highlighting the pivotal role they play in shaping your financial strategy.

To learn more about these differences, read the blog post “ A Comprehensive Guide to Boosting Your Bottom Line with Tax Credits, Part 1”

Now that you have this foundational knowledge, let's explore specific tax credits that can be leveraged by your small business.

Work Opportunity Tax Credit (WOTC)

In the realm of federal income tax credits, the Work Opportunity Tax Credit (WOTC) stands tall, designed to empower businesses that prioritize diversity and inclusion. This general business credit encourages employers to foster equitable employment opportunities, particularly within targeted demographic groups.

WOTC extends its support to various demographics, including:

Qualified veterans ,
Temporary Assistance for Needy Families (TANF) recipients,
Supplemental Nutrition Assistance Program (SNAP) recipients,
Vocational rehabilitation referrals,
Long-term unemployed,
Ex-felons,
Summer youth employees,
Supplemental security income recipients, and
Designated community residents living in Empowerment Zones or Rural Renewal Counties.

WOTC serves to directly decrease a business' effective tax liability by permanently reducing income tax. Employers can leverage WOTC by certifying eligible new hires within the initial 28 days of their employment. In cases where the full credit amount couldn't be utilized due to tax liability limitations, employers can opt to carry back 1 year or forward up to 20 years.

To capitalize on these valuable credits, businesses need to submit Form 8850, the Pre-Screening Notice and Certification Request, and the completed supporting qualification form to the appropriate state workforce agency within the initial 28 days of a new employee's start date.

It's noteworthy that the responsibility for managing the WOTC administrative workflow often falls within the purview of a company's HR department rather than its accounting team. This emphasizes the importance of HR teams in unlocking the full potential of WOTC for businesses. The most successful programs engage both the tax or finance teams collaborating as growth strategies are implemented.

Completing an electronic smart survey initiates the eligibility determination process for WOTC. Administered at the federal level but determined by each state's workforce agency (SWA), this program holds the potential for substantial tax credits.

Businesses have the chance to earn between $1,200 and $9,600 for every eligible new hire, making WOTC a powerful tool in fostering diverse talent and reaping financial benefits. Annually, businesses claim over one billion dollars in tax credits under the impactful WOTC program.

Research and Development (R&D) Tax Credits

Elevating the potential for innovation within the business landscape, Research and Development (R&D) Tax Credits emerge as a catalyst for small businesses striving to make breakthroughs in their respective industries.

Designed to fuel experimentation, technological advancement, and the pursuit of novel solutions, R&D Tax Credits present a compelling opportunity for businesses committed to pushing the boundaries of what's possible.

Small businesses engaging in activities that enhance or create new products, processes, or services may find themselves eligible for R&D Tax Credits. This tax credit extends beyond traditional laboratories, encompassing a wide range of industries, from manufacturing and technology to healthcare and beyond.

By leveraging R&D Tax Credits, small businesses not only recoup a portion of their qualified research expenses but also gain a financial edge that propels them toward greater competitiveness and success.

The beauty of R&D Tax Credits lies in their versatility, offering businesses the financial freedom to reinvest in their ventures, enhance their research capabilities, and ultimately contribute to industry-wide progress.

As small businesses navigate the evolving landscape of innovation, R&D Tax Credits stand as a testament to the value placed on creativity, problem-solving, and the relentless pursuit of improvement. For small businesses with a penchant for exploration and a commitment to pioneering solutions, the R&D Tax Credit is a beacon lighting the way to a future defined by ingenuity and advancement.

Solar Investment Tax Credit (ITC)

The U.S. Department of the Treasury and Internal Revenue Service have recently issued guidance on the Investment Tax Credit (ITC) under Section 48 of the Internal Revenue Code, aiming to bolster the investment surge driven by President Biden's Inflation Reduction Act.

Released on November 17, 2023 , the guidance offers crucial clarity for businesses involved in clean energy projects, providing certainty for investment decisions. Deputy Secretary of the Treasury Wally Adeyemo emphasized the importance of this clarity in advancing projects, such as offshore wind and battery storage, as well as supporting small-scale initiatives connecting to the grid.

The proposed rules cover eligibility criteria for various equipment and costs, aligning with the Act's objectives to spur clean energy development, create jobs, and enhance energy security.

This regulatory development aligns with the broader context of sustainability and clean energy solutions. Small businesses can now harness the transformative power of solar technology while enjoying substantial financial benefits through the Solar Investment Tax Credit (ITC) , also referred to as the Solar Tax Credit. This federal incentive proves indispensable for businesses dedicated to environmental responsibility and aspiring to leverage the potential of solar energy.

The Solar ITC provides small businesses with a tax credit equal to a percentage of their qualified expenditures on eligible solar energy property. This includes solar panels, solar water heating equipment, and solar-powered systems integrated into the business infrastructure. As businesses increasingly prioritize eco-friendly practices, the Solar ITC becomes a crucial tool for realizing sustainable energy goals.

For small businesses venturing into solar initiatives, the ITC serves as a catalyst, driving down the cost of solar installations and encouraging a transition to renewable energy sources. The financial relief offered by the tax credit empowers small businesses to embrace solar solutions, reduce their carbon footprint, and contribute to a cleaner, more sustainable future.

These are just a few of the lucrative tax credits your small business can utilize. In our next blog post, we’ll discuss healthcare, retirement, and Federal Empowerment Zone credits that can help your small business boost its bottom line.

OnCentive Can Help You Unlock Small Business Tax Savings

A Comprehensive Guide to Boosting Your Small Business's Bottom Line with Tax Credits, Part 1

Fri, 01 Dec 2023 16:36:21 GMT

Last week, as large retail chains drew crowds seeking Black Friday deals, many small businesses faced the challenge of competing for attention. The impact of such competition can be substantial, but for small retailers there's an alternative solution to help increase revenue and save money this holiday season.

By capturing crucial tax credits, you have the power to increase your company’s bottom line, especially in these challenging economic times. OnCentive recognizes the unique challenges faced by small businesses and our seasoned tax experts are here to provide your organization the support you need to take advantage of these opportunities.

Our expertise has become a beacon of support for small businesses striving to succeed, and we’re sharing the valuable gift of knowledge this holiday season by offering this comprehensive guide.

Not only will you uncover the various tax credits available to your business, but you’ll also learn how partnering with OnCentive can be a game-changer for your business striving for financial resilience.

Navigating Your Business’ Finances: Unraveling the Power of Tax Credits vs. Deductions

In the dynamic world of tax benefits, distinguishing between credits and deductions is the key to unlocking significant savings for your business. Consider this as your compass in the intricate landscape of tax credits.

Imagine your business investing in energy-efficient vehicles or adopting green materials for your buildings. These actions not only contribute to the economy, foster business development, and positively impact the environment, but also open avenues for substantial savings through tax credits.

Understanding Business Tax Deductions vs. Tax Credits

Unlike deductions, which reduce your net taxable income in the latter stages of the tax process, these credits directly reduce the out-of-pocket expense of income tax burden.

Many of these tax credits can be realized in a dollar-for-dollar reduction to your organization’s tax liability. Understanding this disparity is the first step to harnessing the full power of tax laws, and now that you understand the difference, we’ll explore some of the valuable credits your small business can leverage.

In our next blog post , we’ll focus on the Work Opportunity Tax Credit (WOTC) , the Research and Development (R&D) Tax Credit , and the Solar Tax Credit . Stay tuned to discover the intricate landscape of tax opportunities tailored to positively impact your business’s bottom line.

OnCentive Can Help You Unlock Small Business Tax Savings

Empowering Unhoused Veterans Through The Homeless Veterans' Reintegration Program

heather.reid@hrlogics.com (Heather Reid) — Tue, 10 Oct 2023 19:03:22 GMT

The Homeless Veterans' Reintegration Program (HVRP) , a competitive grant program under the Department of Labor, is making a significant impact on the lives of homeless veterans. By providing job training, counseling, and placement services, HVRP aims to expedite the reintegration of homeless veterans into the labor force.

This program addresses the unique needs of homeless veterans, stimulates service delivery systems, and empowers these brave individuals to rebuild their lives through meaningful employment.

VCRP Veteran Communities

HVRP serves three different categories of veteran populations:

Homeless female veterans and veterans with children
Incarcerated veterans
All other veterans experiencing homelessness that meet the criteria of the latest FOA.

The HVRP establishes national priorities for the overall program. Each HVRP grantee contributes to these priorities by placing veterans in these populations into competitive employment at the local level.

HVRP grantees possess an in-depth understanding of the homeless v eteran population they serve. They recognize each veteran has unique circumstances and challenges. By tailoring their services to address these specific needs, HVRP grantees create a supportive environment that fosters success.

Flexible and Engaging Veteran Outreach

Outreach is a critical component of HVRP. Grantees employ a flexible and non-threatening approach to meet veterans where they are. By establishing trust and understanding, they engage homeless veterans and connect them to the program's comprehensive services. Through outreach, HVRP grantees strive to ensure that no veteran is left behind.

Assessing Job Readiness and Veteran Eligibility

To determine eligibility and assess job readiness, HVRP conducts thorough assessments of each veteran. These assessments help identify the specific barriers a veteran may face and enable the development of personalized employment plans. By taking a holistic approach, HVRP ensures veterans receive the right support to overcome challenges and achieve success.

Veteran-Centered Case Management

Veteran-centered case management is at the heart of HVRP appointees. HVRP appointees treat each veteran as an individual with unique strengths and preferences. Case managers work closely with veterans to develop Individual Employment Plans (IEPs) that align with their goals and address any obstacles they may encounter along the way. This personalized support maximizes the chances of successful employment outcomes.

Targeted Job Training and Placement

HVRP recognizes the importance of job-driven training and placement services. Grantees focus on providing training that aligns with specific industries, occupations, and skills in demand within the local job market. Whether through in-house training programs or partnerships with community organizations, HVRP ensures veterans receive additional skills to succeed in the workplace. The program will then help veterans find employment opportunities based on these newly gained skills.

Collaboration for Comprehensive Support

Collaboration is key to the success of HVRP. Grantees work hand in hand with public and private partners at the federal, state, and local levels. These collaborations enable the provision of additional supportive services, such as access to housing, healthcare, and counseling. By creating a comprehensive support system, HVRP addresses the multifaceted challenges faced by homeless veterans and increases their chances of successful reintegration into society.

Placing Veterans into Competitive Employment

The HVRP establishes national priorities, and each grantee contributes to these priorities by placing veterans from underserved populations into competitive employment at the local level. Through this approach, HVRP ensures that homeless veterans have access to meaningful employment opportunities that match their skills and aspirations.

The Homeless Veterans' Reintegration Program is making a remarkable difference in the lives of homeless veterans. By providing job training, counseling, and placement services, HVRP empowers veterans to reintegrate into the labor force and rebuild their lives.

Unlock Tax Savings By Employing Veterans

The federal government also established the Work Opportunity Tax Credit (WOTC) , a hiring incentive program that rewards employers who hire from targeted groups that have historically faced barriers to entering the workforce. This federal incentive program offers tax credits worth up to $9,600 per eligible hire.

You can empower your business to make a difference in these underserved communities while maximizing profitability with OnCentive's WOTC solution . With OnCentive, your business gains a permanent reduction in income tax, directly lowering your effective tax liability. OnCentive's advanced Tax Credit Technology simplifies the process, verifying eligibility, managing documentation, and ensuring maximum credit collection within the crucial 28-day window.

Plus, by partnering with us, you're not just benefiting your business — OnCentive donates 1% of our annual profits generated from WOTC claims to Hire Heroes USA , a nonprofit supporting service members and veterans in their civilian careers.

Schedule a demo to talk to a WOTC Expert and discover how OnCentive can transform your hiring practices, increase your company’s profitability, and make a meaningful impact in the lives of those who need it most.

Louisiana Youth Job Credit: Empowering Youth and Boosting Business

heather.reid@hrlogics.com (Heather Reid) — Mon, 18 Sep 2023 19:56:20 GMT

In an effort to address youth unemployment and provide opportunities for Louisiana's young population, the state has introduced the Louisiana Youth Job Credit. This nonrefundable tax credit aims to incentivize businesses to hire eligible youth, offering financial benefits while empowering young individuals to enter the workforce. Let's delve into the details of this program and explore how it can benefit both businesses and young job seekers.

Eligibility Criteria:

To qualify for the Louisiana Youth Job Credit, youth must meet specific criteria. These include:

Age Requirement: Youth must be between 16 and 23 years old at the start date of their employment.
Prior Unemployment: Youth must have been unemployed before being hired (specific time period not specified).
Minimum Weekly Hours: They should work at least 20 hours per week.
Duration of Employment: Youth must remain employed for a minimum of three consecutive months.
Qualifying Factors: They must meet at least one of the following conditions:
Age 18 or older, no longer in school, and lacking a high school diploma, GED, or equivalent qualification.
Belong to a family receiving benefits from the Family Independence Temporary Assistance Program.
Belong to a family receiving Temporary Assistance for Needy Families (TANF) benefits.
Belong to a family receiving Supplemental Nutrition Assistance Program (SNAP) benefits.
Belong to a family receiving Kinship Care Subsidy Program benefits.
Have a history of incarceration or be on probation/parole.
Be pregnant or a parent.
Be experiencing homelessness.
Have been in, or are currently in, a foster care program.
Be a veteran.
Have a parent who is incarcerated or was released within the past two years.
Reside in public housing or have received housing assistance such as a Section 8 voucher.

Credit Amounts:

The Louisiana Youth Job Credit provides financial benefits to businesses based on the employment status of eligible youth. The credit amounts are as follows:

Full-Time (32 hours or more per week): $1,250
Part-Time (20 to under 32 hours per week): $750

Nonrefundable Credit and Carryforward:

It is important to note that the Louisiana Youth Job Credit is nonrefundable, meaning it cannot be claimed as a direct payment; however, businesses can carry forward any unused credit for up to five years, reducing their tax liabilities in subsequent years.

Empowering Louisiana Youth and Boosting Business:

The introduction of the Louisiana Youth Job Credit is a significant step toward reducing youth unemployment and creating a positive impact on the state's economy. By offering financial incentives to businesses, the program encourages the hiring of eligible youth, providing them with valuable work experience and income. Moreover, it targets specific groups, such as those who have faced challenges in education, experienced housing instability, or had involvement with the justice system.

The benefits of this program extend beyond short-term employment. It allows young individuals to develop essential skills, gain financial independence, and build a foundation for future career success. By investing in Louisiana's youth, businesses contribute to a stronger workforce, fostering economic growth and stability in the state.

Unlock Youth Employment Benefits with OnCentive:

The Louisiana Youth Job Credit serves as a catalyst for positive change, addressing youth unemployment while empowering young individuals to overcome barriers and achieve economic independence. By incentivizing businesses to hire eligible youth, the program creates a win-win situation, benefiting both employers and young job seekers. With the credit's nonrefundable nature and carryforward provision, businesses have the opportunity to make a lasting impact and invest in the future of Louisiana's workforce.

OnCentive makes it easy for businesses to access and secure tax credits. We ensure that you receive all the benefits without the hassle of dealing with complex paperwork and compliance requirements. By partnering with us, you can contribute to the program's goals of reducing youth unemployment and empowering young individuals while enjoying the financial advantages offered by this valuable tax credit. Let OnCentive be your profitability partner on the path to success.

Unlocking Success with the Work Opportunity Tax Credit (WOTC) Program

heather.reid@hrlogics.com (Heather Reid) — Fri, 08 Sep 2023 15:39:10 GMT

The Work Opportunity Tax Credit (WOTC) stands as a federal incentive that empowers employers to make a positive impact on both their workforce and their bottom line. This tax credit is specifically designed to support employers who hire and retain individuals from targeted groups that have long encountered significant employment barriers. For those considering the implementation of a WOTC program within their organization, the keys to success lie in careful planning and adherence to the program's guidelines.

Key Considerations for a Successful WOTC Program:

Identify Eligible Targeted Groups:

Begin by identifying the specific targeted groups for which your organization is eligible to hire and retain employees under the WOTC program. These groups encompass individuals receiving certain forms of public assistance, veterans, ex-felons, and residents of designated areas like Empowerment Zones or Rural Renewal Communities.

2. Develop an Effective Recruitment and Hiring Process:

Craft a recruitment and hiring process tailored to attract and retain individuals from the targeted groups. This could involve collaborating with community organizations, engaging in job training programs, and implementing targeted recruitment and hiring strategies.

3. Train HR Staff and Hiring Managers:

Ensure your HR staff and Hiring Managers are well-versed in the intricacies of the WOTC program, including the proper documentation and certification of eligible employees. It's crucial to note that you have only 28 days from an employee's hire date to file the necessary paperwork for certification. Implementing a robust tracking system for new hires is pivotal to optimizing your WOTC program and its benefits.

4. Adhere to Regulations and Guidelines:

Maintain strict compliance with all relevant regulations and guidelines when claiming the tax credit. This includes meticulous record-keeping, precise timing, and adherence to documentation requirements. Be aware that the IRS may audit your WOTC credit, necessitating proof of WOTC eligibility for the claimed employees.

5. Continuous Monitoring and Adjustment:

Regularly monitor the effectiveness of your WOTC program and be prepared to make necessary adjustments to ensure its continued success. Key aspects of monitoring include compliance reports on a monthly or quarterly basis, tracking any denials from state agencies, establishing an appeal process (within one year of denial), and ongoing training for your HR and hiring teams to ensure proper completion of WOTC paperwork.

Support for Your WOTC Program:

The WOTC program is a valuable tax incentive that can save your company money while expanding your workforce and reducing overhead costs. OnCentive is your dedicated partner in navigating the complexities of tax credits. Unlike other companies that merely dabble in tax credits, OnCentive's exclusive focus is on optimizing tax credits for American employers. Our mission revolves around helping businesses harness the numerous state and federal credits and incentives, enabling them to achieve maximum profitability. With our seasoned leadership team boasting over 150 years of combined tax credit experience, you can trust us to optimize tax credits and incentives for your organization. Our specialists dive deep to identify and confirm your eligibility for all available tax credits and incentives. When you choose OnCentive, you're choosing expertise, integrity, and dedication.

Tackling Backlogs and Embracing E-Filing: The IRS's Journey to Modernize Form 941-X

heather.reid@hrlogics.com (Heather Reid) — Fri, 18 Aug 2023 15:37:43 GMT

On the one-year anniversary of the IRS’s enhanced funding under the Inflation Reduction Act of 2022 , Commissioner Daniel Werfel made a compelling announcement regarding the imminent electronic filing of Form 941-X – the form used for adjusting and correcting previously filed employment tax returns.

Understanding the Backdrop:

The Inflation Reduction Act, signed by President Biden in August 2022, allocated nearly $80 billion in funding to the IRS for a decade. Despite fiscal fluctuations, the IRS has pushed forward with their ambitious Strategic Operating Plan for 2023-2031 . A significant element of this plan is modernizing operations and integrating electronic filing options for a broad range of forms, especially employment tax returns.

In 2022, a report from the Treasury Inspector General for Tax Administration (TIGTA) highlighted the substantial opportunity presented by employment tax returns for growth in business e-filing. Acting on this, TIGTA strongly recommended the IRS to prioritize and roll out all forms for e-filing.

The Lingering Backlog:

COVID-19 left a lasting mark on the IRS's operations. The pandemic saw a tremendous backlog of submitted forms. As of August 2023, the IRS still had 1.8 million unprocessed Forms 941 and 505,000 unprocessed Forms 941-X . The agency has been processing these returns in order of their reception. The catch? Some of the Forms 941-X can't be processed until their corresponding Forms 941 are processed. The primary challenge is that the bulk of these backlogged returns are paper-based, and the Form 941-X currently lacks an e-filing option.

A notable aspect of this backlog is the Employee Retention Credit (ERC) – a tax credit introduced to support employers during the pandemic. The volume of ERC claims and paper processing added to the delays. While the IRS has made progress on the backlog , many businesses are still waiting to receive their much neede d funds.

A Beacon of Modernization:

Reflecting on a year of modernization under the Inflation Reduction Act, Commissioner Werfel acknowledged significant strides in the IRS’s Paperless Processing Initiative. By 2023, around 849,000 forms had been scanned, including 304,000 Forms 941.

The promising news doesn’t end there. A draft of Form 8879-EMP indicates that by 2024, the IRS plans to roll out e-filing for the Form 941-X as a part of its Modernized e-File. Werfel confirmed this during a Q&A session, reiterating the agency’s goal to provide taxpayers an option to handle all IRS interactions electronically by the upcoming filing season. However, for those who prefer paper, the IRS will be prepared. Werfel emphasized, “By 2025, every piece of paper that comes through the IRS’s front door will be digitized,” ensuring efficient storage and faster processing.

In conclusion, the IRS's journey to modernization, especially regarding Form 941-X, paints a picture of an agency working diligently to evolve, adapt, and serve taxpayers better. The focus on electronic filing, combined with addressing the backlog, signals a more streamlined and efficient future for both the IRS and taxpayers.

Navigating the ERC Claim Delays: OnCentive's Swift Solution for Financial Stability

The prolonged delays in processing ERC claims pose significant challenges for eligible employers who depend on these refunds for their financial stability. The waiting period, characterized by months of uncertainty and lack of clear communication from the IRS, has left many businesses in a financial bind.

To provide some relief, OnCentive, a seasoned profitability consultant, has teamed up with several financial institutions to launch a unique funding program. This innovative solution circumvents the typical eight to nine-month wait from the IRS and provides a swift cash infusion to clients within weeks.

For further details on OnCentive’s funding program, visit https://www.oncentive.com/c ovid-19-erc-funding .

New Tax Credit in Colorado Supports Adoption and Employee Well-Being

heather.reid@hrlogics.com (Heather Reid) — Mon, 14 Aug 2023 16:23:18 GMT

New Tax Credit in Colorado Supports Adoption and Employee Well-Being

Colorado is taking a significant step towards supporting working parents and recognizing the importance of adoption in the workplace. Beginning January 1, 2024, a new income tax credit will be available to employers, allowing them to claim 50% of the expenses incurred from voluntarily paying employees during pre-adoption leave and for temporary replacement help. Let’s explore the details of this tax credit, its benefits for both employers and employees, and how it contributes to a family-friendly work environment in Colorado.

Eligibility and Limitations

To qualify for the tax credit, employers must have a written policy that offers pre-adoption leave. The maximum amount of pre-adoption leave for which an employer can claim the credit is 12 weeks per employee. It's important to note that the credit is limited to pre-adoption leave for employees who have been employed for at least one year and earned less than $80,000 in the preceding year. Additionally, the credit does not cover any compensation provided to an employee in addition to their regular wages.

Benefits for Employers

Implementing a pre-adoption leave policy and utilizing the tax credit brings numerous benefits for employers in Colorado. Firstly, it demonstrates a commitment to supporting their employees' personal lives and work-life balance. This commitment can significantly enhance employee morale, loyalty, and job satisfaction, leading to increased productivity and a more engaged workforce.

Moreover, by offering pre-adoption leave, employers create an environment that attracts and retains top talent. In today's competitive job market, comprehensive benefits, including family-friendly policies, play a crucial role in recruiting and retaining skilled professionals.

The tax credit itself provides a financial incentive for employers. By offsetting 50% of the expenses incurred during pre-adoption leave and temporary replacement help, the credit eases the financial burden associated with supporting employees through the adoption process, ultimately encouraging more employers to adopt similar supportive policies.

Benefits for Employees

The availability of pre-adoption leave can provide significant advantages for employees. Adopting a child is a life-changing event that requires time, energy, and emotional investment. Pre-adoption leave allows employees to fully engage in the adoption process, attend necessary appointments, and provide the care and attention their new child needs.

The pre-adoption leave allows employees to establish a strong bond with their child before returning to work. This bonding time is crucial for the well-being and development of both the child and the parent, fostering a healthy family dynamic and easing the transition into a new chapter of their lives.

Navigating Colorado's Pre-Adoption Leave Tax Credit: An Overview of Benefits and How OnCentive Can Help

The Colorado income tax credit for pre-adoption leave highlights the state's dedication to assisting working parents and fostering a family-friendly work environment. By adopting a policy offering pre-adoption leave and capitalizing on the tax credit, employers can showcase their commitment to employee well-being and attract top talent. For employees, the credit-enabled pre-adoption leave is invaluable, enabling them to wholeheartedly embrace the adoption journey while feeling valued and supported by their employers. As January 1, 2024 approaches, Colorado employers should review policies to meet tax credit eligibility criteria, embracing this chance to bolster adoption and work-life equilibrium, leading to a more inclusive and positive workplace that enhances employee satisfaction, productivity, and overall success.

Through the identification and optimization of relevant tax credits and business incentives, OnCentive specializes in assisting businesses in improving their financial plans. As Colorado firms prepare to accept the new pre-adoption leave tax credit, OnCentive may offer its expertise to make sure that these businesses properly comprehend the qualifying requirements, traverse the required paperwork and procedures, and make the most of this credit's advantages. Employers may confidently create and implement written rules that satisfy the criteria for the tax credit while also establishing a family-friendly culture that draws and keeps top talent by working with OnCentive.

August 2023 ERC Claims Update on IRS Backlog of Unprocessed 941-X Forms

heather.reid@hrlogics.com (Heather Reid) — Fri, 04 Aug 2023 20:24:04 GMT

On Jul 27, 2023 The Ways and Means Committee held an Oversight Sub Hearing on the Employee Retention Tax Credit (ERC). During the hearing, members of Congress and witnesses discussed ongoing issues, including the ERC backlog, delays in processing, ambiguous guidelines, and fraud allegations.

Just two days earlier, IRS Commissioner Danny Werfel assured tax professionals in Atlanta at a special roundtable session that the IRS had successfully cleared the backlog of valid ERC claims. Committee Chairman Jason Smith, however, raised concerns during the hearing, noting that nearly half a million forms still remained to be processed according to the IRS website.

The Internal Revenue Service (IRS) reported that there are still 506,000 unprocessed Form 941-Xs (Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund) as of July 26, 2023. Many businesses, waiting for essential pandemic relief funds, have become increasingly frustrated with the delays.

Witness Pat Cleary, President and CEO of the National Association of Professional Employer Organizations (NAPEO), expressed his concerns, stating:

“Their own website a week ago said that it was almost 500,000 in the backlog, so they clearly didn’t clear that out in a week. You know that’s the first problem that we’re seeing occur with this. And you see again, last week that it ticked back up by another few 100,000, so it’s almost at half a million. Whatever the problem is, there’s something out of whack with the count. And you know, and I agree we wish the Commissioner well, as I said, we’ve had a really good relationship with the IRS. But for his credibility, I think first shot out of the box, he needs to be credible and truthful in terms of describing what the backlog is.”

Some of these delays can be attributed to the manner in which to process these relief tax credits. “The problems at the IRS were present from the very beginning. For starters, the IRS forced all businesses to apply on paper and mail in the application. That has led to long delays. The IRS told my staff in May that 20% of claims have sat unresolved for more than four months, and we have heard from other businesses who say they have been waiting years. For small businesses who filed legitimate claims, this has become a major source of frustration with the IRS,” said Chairman Smith.

Oversight Subcommittee Chairman David Schweikert (AZ-01) also confirmed these sentiments by stating, “One of the challenges is the backlog of ERTC claims that the IRS still needs to process. Form 941-X, the form by which employers must file their ERTC claims, is a paper form. The employers had to file many ERTC claims retroactively. As a result of processing these claims by the IRS has been shown to create a massive backlog of unprocessed claims. Some employers have been waiting months if not years for the credits that still have not actually been processed. This delay has created immense hardship for employers, particularly small businesses who desperately need the help in retaining their employees during the height of the COVID-19 pandemic.”

The extended delays in processing ERC claims have hit employers hard, especially those relying on these refunds for their financial stability. The situation, marked by months of uncertainty and compounded by a lack of clear communication from the IRS, has escalated into a severe pain point for businesses.

Understanding the gravity of the situation, OnCentive , a recognized leader in profitability consulting, has acted swiftly. Collaborating with various financial institutions, they've launched a funding program specifically targeting this issue. This innovative solution circumvents the typical eight to nine-month wait from the IRS and provides a swift cash infusion to clients within weeks.

For further details on OnCentive’s funding program, visit https://www.oncentive.com/covid-19-erc-funding .

OnCentive and Hire Heroes USA Launch Employer Education Module

Mon, 24 Jul 2023 14:03:26 GMT

OnCentive, the nation’s leading tax credit consultancy, together with Hire Heroes USA, a nonprofit organization committed to veteran career placement, unveiled a new employer training module at the Second Annual "Salute to Our Heroes" charity event yesterday.

The educational initiative aims to equip employers with resources to aid them in understanding the significant advantages of hiring veterans. It also explains the financial incentives available through the Work Opportunity Tax Credit (WOTC) program.

WOTC, a federal hiring incentive, rewards employers who hire individuals from several eligibility groups, including veterans. The program provides potential tax credits between $1,200 to $9,600 per qualified new hire, making it financially advantageous for companies to recruit and hire veterans.

The launch of this collaborative module marks a significant step in OnCentive's commitment to social responsibility and Hire Heroes USA's mission to assist military veterans transitioning into the civilian workforce.

"We're incredibly proud to partner with Hire Heroes USA on this essential initiative," said Shannon Scott, CEO of OnCentive. "We believe strongly in the value that veterans bring to the workplace, and we're committed to helping other companies realize this potential."

The newly introduced employer training module is available on the Hire Heroes USA platform. It seeks to broaden employers' perspectives about the unique skills and experiences that veterans bring to the workplace while providing them with the tools to leverage the WOTC program effectively.

"We are thrilled to announce the launch of this new employer education module in partnership with OnCentive," said Hire Heroes USA CEO Andrew Sandoe. “By equipping employers with the knowledge and resources they need to understand the advantages of hiring veterans, including the Work Opportunity Tax Credit program, we are paving the way for increased employment opportunities for our nation's heroes."

The collaboration between OnCentive and Hire Heroes USA is a testament to the power of partnership, providing a tangible benefit to employers, veterans, and the broader community.

For Media Inquiries:

London Brown

Communications Manager

lbrown@hireheroesusa.org

About Hire Heroes USA

Hire Heroes USA empowers US military members, veterans, and spouses to succeed in the civilian workforce. Our organization offers personalized one-on-one coaching, professionally revised resumes, mentoring, workshops, a job board, career fairs and more, to tens of thousands of job-seeking veterans and military spouses annually. Hire Heroes USA prioritizes transparency, earning a 4-star rating from Charity Navigator and the GuideStar Platinum Seal. Funded exclusively through public donations, federal and private grants, we provide our services at no cost to clients. For more information about our organization, visit hireheroesusa.org.

Promoting Economic Growth and Job Creation: Illinois' Tax Credits for Construction

Mon, 17 Jul 2023 19:32:43 GMT

In a bid to boost economic development, incentivize capital investments, and foster the creation of high-quality construction jobs, the state of Illinois has recently implemented an amendment to its premier incentive programs. Known as the BCJA (Blue Collar Jobs Act Tax Credit), this legislation introduces tax credits specifically designed to support construction projects and the wages paid to construction workers. The legislation makes $20 million in tax credits available per year for eligible companies. Let's delve deeper into the details of this amendment and understand its significance for eligible companies and communities across Illinois.

Eligibility Criteria and Application Process

Under the BCJA, certain criteria must be met for companies to be eligible for the tax credits. These criteria include being located in an Enterprise Zone (EZ) or a River Edge Redevelopment Zone (RERZ), holding a designation as a High Impact Business (HIB), or having an agreement under the Economic Development for a Growing Economy (EDGE) Program. These designations are typically awarded to companies operating in areas targeted for economic development or those that have a significant positive impact on the local economy.

Furthermore, to qualify for the tax credits, companies must have completed construction projects starting from 2021, which marks the effective date of the legislation. Companies meeting these requirements are eligible to apply for the tax credits, providing them with an opportunity to benefit from the incentive program.

Tax Credits and Incentives

The tax credits offered under the BCJA are calculated based on a percentage of the income tax attributable to the construction workers employed on eligible projects. The exact percentage depends on the project's location. For projects located in underserved areas , eligible companies can receive tax credits equal to 75 percent of the income tax attributable to construction workers. On the other hand, projects located in other areas qualify for a tax credit of 50 percent.

These tax credits serve as a direct economic benefit to eligible companies. By reducing their tax liability, businesses can retain more capital for further investment, expansion, or other business needs. This provides a powerful incentive for companies to undertake construction projects, particularly in areas targeted for economic growth or in need of revitalization.

Driving Economic Growth and Job Creation

The overarching goal of the Blue Collar Jobs Act Tax Credit is to drive economic growth in communities across Illinois and create well-paying construction jobs. By offering tax credits specifically tied to construction worker wages, the legislation encourages major capital investments and incentivizes companies to embark on projects that contribute to local economies.

The tax credits not only benefit businesses but also have a ripple effect on the surrounding communities. Increased construction activity stimulates local economies, creating a demand for various goods and services, and generating employment opportunities beyond the construction sector. As a result, the BCJA has the potential to spur economic development, improve infrastructure, and enhance the overall quality of life in Illinois.

OnCentive Can Help Your Business Capture Illinois Tax Credits for Construction

The BCJA amendment in Illinois demonstrates the state's commitment to promoting economic growth and job creation through targeted incentives for construction projects. By providing tax credits attributable to the wages paid to construction workers, the legislation encourages companies to invest in communities across Illinois. Moreover, by focusing on underserved areas and offering higher tax credits, the BCJA aims to ensure that economic development is inclusive and benefits those regions in most need of revitalization. Through this initiative, Illinois paves the way for sustainable growth, thriving communities, and the creation of good-paying construction jobs that uplift both businesses and individuals alike.

In line with this progressive initiative, OnCentive, stands ready to assist businesses in maximizing the advantages offered by the BCJA amendment. Our expertise lies in navigating the complexities of incentive programs, including the BCJA, ensuring that companies not only comply with the regulations but also harness the full potential of available tax credits. By partnering with OnCentive, businesses can unlock new growth opportunities, contribute to community advancement, and create well-paying construction jobs that uplift both the corporate landscape and individuals seeking sustainable employment.

June 2023 ERC Claims Update: Progress Made on IRS Backlog of Unprocessed 941-X Forms

heather.reid@hrlogics.com (Heather Reid) — Thu, 08 Jun 2023 21:32:30 GMT

As of May 31, 2023, the Internal Revenue Service (IRS) revealed a backlog of approximately 740,000 unprocessed Form 941-Xs (Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund). This form serves as a lifeline for the many employers that were impacted by the COVID-19 crisis, allowing them to claim critical tax credits such as the Employee Retention Tax Credit (ERC) . Although this number signifies a downward trend from nearly one million unprocessed forms in April , many business owners still find themselves entangled in the frustrating web of IRS delays to receive their much-needed pandemic relief funds.

Further compounding this situation is the existing backlog of unprocessed Forms 941. As of June 1, 2023, the IRS is grappling with 2.0 million unprocessed Forms 941 (Employer’s Quarterly Federal Tax Return), impeding the processing of related 941-Xs.

In a recent video press conference, Senator Kirsten Gillibrand (D-NY) demanded the IRS to address the escalating backlog of unprocessed employment tax forms . Her advocacy stems from the distress calls she has been receiving from businesses in her state, waiting anxiously for their ERC tax refunds for claims filed in March 2021 for wages paid in 2020.

Senator Gillibrand emphatically stated , “At the height of the pandemic, thousands of small businesses did the right thing and kept their employees on payroll. They were promised reimbursement, but years after the fact, they still haven’t received it. I am calling on the IRS to speed up its processing to fix this problem as soon as possible and get our hard-working small business owners the refunds they deserve.”

Taking a further step, Gillibrand penned a letter to IRS Commissioner Daniel Werfel, requesting a detailed state by state breakdown of the current ERC backlog and the agency's plans and timeline to resolve this pressing issue.

Although IRS Commissioner Daniel Werfel did not directly respond to Gillibrand’s letter as of June 7, 2023, he voiced his concerns regarding the backlog during an April 27, 2023 Ways and Means Committee hearing . Werfel disclosed that during the filing season, the IRS managed to process about 20,000 ERC credit claims per week. However, with the filing season at its end, he reassured that the IRS was primed to recalibrate staffing and expected to more than double the processing rate to 40,000 to 50,000 processed claims per week. The Commissioner assured the Committee that addressing the unprocessed 941-Xs was a top priority, and they were actively seeking solutions to improve efficiency and set more aggressive targets to manage the backlog.

The IRS has outlined a 10-year funding plan focused on increasing digitization, which includes the scanning of forms like the Form 941 to streamline processing. As of June 2023, the Form 941-X must be filed in paper format. It remains uncertain whether future IRS funding initiatives will incorporate an electronic filing option for Form 941-X.

To provide some relief, OnCentive , a seasoned profitability consultant, has teamed up with several financial institutions to launch a unique funding program . This innovative solution circumvents the typical eight to nine-month wait from the IRS and provides a swift cash infusion to clients within weeks.

For further details on OnCentive’s funding program, visit https://www.oncentive.com/covid-19-erc-funding .

The urgency to address the delays in processing ERC claims cannot be overstated. Employers eligible for these refunds need them promptly to effectively manage their financial strategies and maintain business operations. It is crucial for the IRS to clarify the reasons behind these delays and provide a timeline for resolving the backlog. Meanwhile, solutions like OnCentive's funding program offer a practical stop-gap, helping businesses weather this challenging period.

OnCentive Amplifies Support for Veterans with Second-Annual 'Salute to Our Heroes' Fundraising Event

heather.reid@hrlogics.com (Heather Reid) — Mon, 15 May 2023 16:02:59 GMT

Nation’s Leading Tax Credit Consultancy Aims to Surpass Last Year’s $100,000 Donation Mark, Unveils Collaborative Employer Education Program with Hire Heroes USA

OnCentive , the nation’s lead tax credit consultancy, is excited to announce the second-annual “Salute to Our Heroes'' fundraiser on Thursday, June 22, 2023 from 6:00-10:00 pm. This charitable event directly supports Hire Heroes USA , a distinguished nonprofit committed to empowering US military members, veterans and spouses to succeed in the civilian workforce.

Held at the historic downtown Birmingham, Alabama venue, The Florentine , the second-annual fundraiser will include dinner, drinks, music, and a silent auction with all proceeds from this event benefiting Hire Heroes USA.

Doors open at 6 pm with a social hour allowing guests the opportunity to enjoy cocktails while exploring an array of intriguing auction items. Attendees will hear inspiring talks from veterans who have benefited from Hire Heroes USA's complimentary career services and a keynote address from OnCentive's visionary CEO, Shannon Scott. The night will commence with a silent auction, where guests can bid on numerous items such as exclusive vacation packages, celebrity memorabilia, and autographed sports collectibles.

The event is expected to draw a crowd of over 200 philanthropists, industry leaders, and community members, and is open to the public. Tickets are $50 and can be purchased on OnCentive’s website .

This event coincides with the launch of OnCentive’s and Hire Heroes USA’s employer education program. The collaborative program offers a wealth of resources for employers, emphasizing the significant advantages of hiring veterans and explaining the financial incentives available through the Work Opportunity Tax Credit (WOTC) program.

"Hire Heroes USA is excited to partner again with OnCentive to not only empower more transitioning service members and veterans through its donation pledge but also to expand the resources we provide our partnered employers through education," said Elizabeth Reyes, Director of Corporate Partnerships at Hire Heroes USA. "We are grateful for their support and partnership, and we look forward to making a meaningful impact together for military families."

Last year, OnCentive's inaugural “Salute to Our Heroes'' event succeeded in raising an impressive $100,000 for Hire Heroes USA . Funds from the event enabled Hire Heroes USA to expand and extend a comprehensive suite of free career services such as personalized coaching, resume building, mentoring, workshops, job boards, career fairs, and more to veterans and military spouses.

Sponsorship opportunities and silent auction donations are still available for those wishing to support this impactful veteran-focused nonprofit. For more information, please reach out to press@oncentive.com .

About OnCentive:

OnCentive is a national consulting firm that helps businesses maximize government incentives and tax credits to increase their profitability. Leveraging their leadership's 150+ years of combined credit expertise and their state-of-the-art custom technology, OnCentive captured $3 billion in government incentives for clients, with $0 returned to the IRS.

About Hire Heroes USA:‍

Hire Heroes USA empowers U.S. military members, veterans and spouses to succeed in the civilian workforce. Hire Heroes USA prioritizes transparency, earning a four-star rating from Charity Navigator and the Guide Star Platinum Seal. Funded primarily through public donations and private grants, Hire Heroes USA provides its services at no cost to its clients. In 2021, Hire Heroes USA helped 12,594 veterans and military spouses secure meaningful employment, with an average salary of $62,680.

Media Contact:

Vanessa Tyndall

Executive Vice President of Marketing

press@oncentive.com

Unlocking Opportunities: DOL Announces $44 Million in Job Training & Services Grants for Rural Communities

heather.reid@hrlogics.com (Heather Reid) — Thu, 04 May 2023 13:54:04 GMT

The U.S. Department of Labor (DOL) recently announced a substantial $44 million in funding dedicated to the Workforce Opportunity for Rural Communities (WORC) initiative. This program is designed to help workers in Appalachia, the lower Mississippi Delta, and the Northern Border Regions secure good jobs and achieve economic prosperity. The WORC initiative offers grants ranging from $150,000 to $1.5 million, aiming to create pathways to high-quality careers for residents in these rural areas. In this blog post, we'll explore the objectives and benefits of the WORC initiative and discuss how OnCentive can support organizations in their grant application process.

Addressing Economic Distress and Creating Opportunities

The WORC initiative seeks to address persistent economic distress in rural areas by creating opportunities for residents to obtain high-quality careers, helping them remain and thrive in their communities. By aligning with existing economic and workforce development plans, the initiative supports local and regional workforces' employment and training needs through community partnerships.

Administered by the DOL Employment and Training Administration in partnership with the Appalachian Regional Commission , Delta Regional Authority and Northern Border Regional Commission , each WORC grant will fund projects providing career training and supportive services to people in these regions. This project aims to help residents secure quality jobs in stable, high-demand occupations.

Apply Now and Make a Difference

Organizations interested in applying for the WORC initiative grants must submit their applications by June 13, 2023 . More information about the application process and eligibility criteria can be found on Grants.gov .

OnCentive: Your Partner in the Grant Application Process

At OnCentive, we understand that the grant application process can be complex and time-consuming. We're here to help your organization successfully navigate this process, increasing your chances of securing the necessary funding for your project. Our services include:

Identifying the right grant opportunities: Our team of experts will help you find the most suitable WORC initiative grants for your organization and project.

Grant writing and application support: We'll work closely with you to develop a strong, well-written grant application that accurately represents your project and its potential impact on the community.

Compliance and reporting assistance: Once your project is funded, our team will help you maintain compliance with grant requirements, ensuring your organization continues to receive the necessary funding and support.

Ongoing project management and evaluation: We'll work with you throughout the project's lifecycle, providing support and guidance to help you achieve your goals and make a lasting impact on your community.

The WORC initiative presents a unique opportunity for organizations in Appalachia, the lower Mississippi Delta, and the Northern Border Regions to secure funding and create meaningful change in their communities. With OnCentive's support, you can successfully navigate the grant application process and maximize your chances of securing the funding needed to make a lasting impact on the lives of rural residents. Don't miss out on this chance to help your community thrive – contact OnCentive today for expert assistance with your WORC grant application.

IRS Releases 2023 Draft Form 941-X Used For Claiming COVID-19 Employee Retention Credit Amidst Growing Backlog

heather.reid@hrlogics.com (Heather Reid) — Wed, 26 Apr 2023 16:21:56 GMT

Just days before the release of the April 2023 draft version of Form 941-X (Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund) , the Internal Revenue Service (IRS) announced a staggering backlog of nearly one million unprocessed Forms 941-X . This form is crucial for employers who need to adjust their previously filed Form 941 to account for employment taxes and tax credits, such as the COVID-19 Employee Retention Credit (ERC) .

In an effort to tackle this backlog, the IRS has been diligently working to process Forms 941, since the corresponding 941-X forms cannot be completed until the 941 forms have been processed. As of April 19, 2023, the IRS reported that only 148,000 Forms 941 remain unprocessed , signaling a potential shift in focus towards the 941-X backlog in the near future.

The most recent version of Form 941-X was released in April 2022, with the April 2023 draft containing only minor modifications. To address potential concerns, the IRS has included a note on the cover page of the draft, stating that they will release a new draft if any unexpected issues arise that necessitate changes to the form.

As part of the Inflation Reduction Act of 2022 , the legislation allocated nearly $80 billion over a 10-year period to the IRS with some of those funds dedicated to modernizing and digitizing their paper form processing system. At present, Forms 941-X can only be submitted in paper format, but IRS Commissioner Daniel Werfel has committed to implementing increased digital scanning capabilities during the upcoming filing season in order to alleviate the paper form backlog.

In preparation for potential COVID-19 Employee Retention Credits related to unprocessed Form 941-X returns, the IRS has trained staff at its Cincinnati and Ogden facilities to handle these specific cases. Employers still have the opportunity to file for the COVID-19 ERC, and those seeking assistance with claiming the ERC are encouraged to reach out to the experts at OnCentive .

If you are one of the nearly million employers waiting for the IRS to process your Form 941-X, there is some relief through OnCentive's funding program . This program bypasses the typical eight to nine-month wait from the IRS and provides immediate cash infusion to clients within weeks.

For more information on OnCentive’s funding program, please visit https://www.oncentive.com/covid-19-erc-funding .

Experienced IRS Attorney Joins OnCentive as Special Counsel For Tax Compliance

heather.reid@hrlogics.com (Heather Reid) — Tue, 25 Apr 2023 15:12:11 GMT

Former IRS Senior Attorney Garrett Gregory Joins OnCentive Team to Reinforce Commitment to Tax Compliance Excellence

OnCentive , the nation’s lead tax credit consultancy, is pleased to announce the appointment of Garrett Gregory as Special Counsel For Tax Compliance. Serving as Senior Attorney at the Office of Chief Counsel (IRS) for thirteen years, Gregory brings a wealth of tax compliance knowledge to OnCentive, furthering the firm’s commitment to providing the most compliant tax credit solutions and services to the market.

"Before accepting a role with OnCentive, I reviewed their policies and procedures regarding COVID-19 Employee Retention Credit (ERC) , IRS inquiries, and audit oversight and found that our standards on compliance and service aligned,” said Gregory. “I am excited to join a consultancy that is committed to maintaining the highest standards in the industry and delivering exceptional service. I look forward to working closely with the OnCentive team and contributing my expertise to enhance their compliance and ERC operations, drive innovation, foster a compliance-first culture, and support our clients in achieving their goals."

Serving as a senior attorney with the Office of Chief Counsel (IRS) in both Washington, D.C. and Dallas, Texas, Gregory played a crucial role in providing support to field attorneys and revenue agents, drafting U.S. Treasury Regulations, and litigating cases in U.S. Tax Court. His extensive background in IRS operations, international tax treatment, and S Corporations uniquely positions him to contribute significantly to OnCentive's commitment to compliance and exceptional client services.

"We are thrilled to welcome Garrett Gregory to the OnCentive team," said OnCentive CEO, Shannon Scott. "Garrett's vast experience and deep understanding of tax law will be instrumental in ensuring our continued commitment to providing the highest standard of compliance and exceptional service to our clients. His appointment reflects our dedication to maintaining a compliance-first culture and reinforces our position as a leading provider of tax credit services and solutions. We look forward to the valuable contributions Garrett will make to our organization as we continue to innovate and grow."

In his new role at OnCentive, Garrett Gregory will focus on three key areas: enhancing ERC best practice guidance by working closely with OnCentive Operational teams, leading monthly ERC operations meetings and providing ongoing support; collaborating with the internal resolution team to address IRS inquiries and facilitate communication with clients; and acting as a representative for OnCentive during IRS audits to support customer taxpayers and their CPAs, ensuring the best possible outcomes with his expertise.

“The unprecedented response to ERC has strained IRS resources, creating an increased backlog of unprocessed claims and erroneously denied credits,” said Gregory. “Leading OnCentive’s exclusive audit protection program, I will assist our team with communicating on employers’ behalf with the IRS and guiding clients through the ERC process from beginning to end.”

Garrett Gregory holds a Bachelor of Sciences (Business-Insurance) degree from Pennsylvania State University, Juris Doctor from South Texas College of Law, and a Master of Laws in taxation from Boston University College of Law. Mr. Gregory has held positions at Pricewaterhouse Coopers, the Office of Chief Counsel (IRS), and most recently co-founded the Gregory Law Group, PLLC, where he continues to serve as a member.

OnCentive will be hosting a live webinar with Gregory on Wednesday, May 10th at 1:00pm CDT, “Live Q&A with Former IRS Attorney Garret Gregory: Mastering the Employee Retention Credit.” During this exclusive live webinar, attendees will have the unique opportunity to submit questions during registration ensuring that Gregory addresses your most pressing ERC concerns. To register for this upcoming webinar, please visit: https://attendee.gotowebinar.com/register/4768388846320803416

About OnCentive:

OnCentive is the nation’s leading profitability and compliance consulting firm. Leveraging their leaderships’ 150 years of combined credit expertise and their state-of-the-art custom technology, OnCentive helps businesses maximize government incentives and tax credits. OnCentive has helped their clients capture over $3 billion in government incentives & recovery programs, like the Covid-19 Employee Retention Credits , as well as other federal and state incentive credits like the Work Opportunity Tax Credit , Research and Development Tax Credit , Disaster Employee Retention Credit , and many others. 

Media Contact:

Vanessa Tyndall

OnCentive EVP of Marketing

press@oncentive.com

Link to press release: https://www.einpresswire.com/article/629970087/experienced-irs-attorney-joins-oncentive-as-special-counsel-for-tax-compliance

Shannon Scott Named One of the 10 Most Inspiring Business Leaders Making a Difference

Thu, 20 Apr 2023 03:29:47 GMT

We are thrilled to announce that our very own Shannon Scott, CEO of OnCentive, has been featured as one of "The 10 Most Inspiring Business Leaders Making a Difference" in the latest edition of CIO Views Magazine!

Shannon's unwavering commitment to helping businesses maximize their tax credits and incentives has made a significant impact on our clients' growth and success. Under his leadership, OnCentive has established itself as a trusted partner in the industry.

Please join us in congratulating Shannon on this well-deserved recognition! Your hard work, dedication, and innovative approach to business truly inspire all of us at OnCentive and beyond.

Link to the Web Article: https://bit.ly/3LacQJQ

Link to the Digital Magazine: https://bit.ly/3KQ44PM

Five Federal Tax Credits You Should Know About on Tax Day

heather.reid@hrlogics.com (Heather Reid) — Tue, 18 Apr 2023 16:01:50 GMT

Today is Tax Day, and many business owners may be facing a significant tax bill. While it's natural to always seek ways to minimize expenses and increase profits, it's important to explore various programs that can help reduce your tax liability. One of the most underutilized methods to achieve this is by taking advantage of tax credits offered by the federal government. Here are five tax credits that your business can benefit from:

R&D Tax Credit - up to $250,000 per year : The Research and Development Tax Credit is designed to incentivize businesses to invest in research and development activities. If your business spends money on activities such as creating new products or processes, improving existing products or processes, or conducting research to develop new technologies, you may be eligible for this tax credit.

WOTC - up to $9,600 per new hire : The Work Opportunity Tax Credit is a federal tax credit that provides incentives to businesses that hire employees from certain target groups who have faced significant barriers to employment. This includes veterans, individuals with disabilities, and those who have been unemployed for an extended period.

Solar Tax Credits - up to 30% of solar investment: If your business has installed solar panels or other renewable energy systems, you may be eligible for a tax credit. The federal government offers a solar investment tax credit (ITC) that can be used to offset the cost of installing these systems.

COVID-19 ERC - up to $26,000 per employee: The Coronavirus Aid, Relief, and Economic Security (CARES) Act created the Employee Retention Credit (ERC) to help businesses that were negatively impacted by the COVID-19 pandemic. The ERC provides a refundable tax credit to businesses that retained employees during the pandemic.

Disaster ERC - up to $2,400 per employee: The Disaster Employee Retention Credit is similar to the COVID-19 ERC, but it is specifically designed to help businesses that were impacted by natural disasters. If your business was affected by a hurricane, wildfire, or other natural disaster, you may be eligible for this tax credit.

Taking advantage of these tax credits can help your business save money and reinvest those savings back into your business. However, it's important to note that each tax credit has specific eligibility requirements and limitations, so it's best to consult with a tax credit expert such as OnCentive to determine which tax credits your business may qualify for.

Announcing Page Wiseman as Chief Operating Officer for OnCentive

heather.reid@hrlogics.com (Heather Reid) — Mon, 17 Apr 2023 18:51:05 GMT

Experienced Tax Credit Executive Joins Leadership Team to Expand Operational Growth

OnCentive, the nation’s leading profitability and compliance consulting firm, announces the appointment of Page Wiseman as its new Chief Operating Officer. Wiseman will be responsible for overseeing the operational functions of the tax credit consultancy’s multiple divisions and driving growth through innovative business strategies.

"I am thrilled to accept the role of OnCentive’s Chief Operating Officer and lead the most technologically-advanced operational team in the industry." said Wiseman. "With my extensive experience with the Work Opportunity Tax Credit Program and a deep passion for helping employers maximize their federal and state tax credits, I am eager to lead our team towards even greater success in delivering value to our clients."

Wiseman brings over seventeen years of experience in Tax Credit Program Administration, Tax Management, Unemployment Cost Control, and Claims Operations. Her specialization in hiring incentives and the Work Opportunity Tax Credit (WOTC) Program has led her to achieve exceptional results in tax savings for clients. In her previous role, she led the WOTC division to generate $5 million in annual revenue with a small team of eight employees.

"Page's wealth of experience and tax credit expertise make her the perfect fit for this critical role in our organization," said OnCentive's CEO and Cofounder, Shannon Scott. "Her passion for operational management and driving maximum profitability for clients is incredibly valuable. We look forward to her contributions in driving growth and innovation at OnCentive."

Wiseman's extensive experience in operational functions, logistics, and deliverables at an executive leadership level has enabled her to provide valuable insight and assistance for strategic planning, sales, and total company operational oversight. She holds a SHRM certification, a PHR certification, and a green belt in Lean Six Sigma Operational Strategy. Wiseman holds a degree in Entrepreneurship and Small Business Management with a minor in Computer Science from the Culverhouse College of Business at the University of Alabama.

About OnCentive:

Link to press release: https://www.einpresswire.com/article/628392550/announcing-page-wiseman-as-chief-operating-officer-for-oncentive

Entrepreneur Magazine: Stop Throwing Away Money: 5 Tax Incentives Your Business Is Missing Out On

Thu, 13 Apr 2023 18:31:23 GMT

Often business leaders are too time-strapped and focused on the issues right in front of them to investigate out-of-the-box business strategies. This is why many small businesses and startups miss out on the lucrative tax credits and incentive opportunities that large corporations use to offset their tax liabilities.

In an effort to stimulate the economy and encourage hiring, the U.S. government offers tax breaks for businesses related to employment, growth, training and other activities that employers consider the day-to-day operations of a business. Identifying which incentives are available at the federal, state and local levels can be arduous. And many times, entrepreneurs blindly hope their CPA or accountant handles this for their company, but only a handful of CPAs offer these specialized credits to their clients.

If you want to avoid leaving money on the table, here are five tax credits your company needs to take advantage of.

Click here to read the entire article on Entrepreneur.com.

Update on IRS’s Backlog of Unprocessed ERC Claims

heather.reid@hrlogics.com (Heather Reid) — Thu, 13 Apr 2023 14:22:24 GMT

On March 23, 2023, a group of fifteen Republican members of the House Ways and Means Committee sent a letter to the new IRS Commissioner, Daniel Werfel, expressing their concern about the chronic delays in processing employee retention tax credit (ERC) claims. This letter requested information on various aspects of the delay and its impacts on businesses, but as of April 12, 2023, the meeting with the IRS has yet to occur.

Since late 2021, the only available method for filing an ERC claim with the IRS has been via Form 941-X , the Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund. Unfortunately, this form can only be filed through mailing or faxing, and there is no option for filing electronically. This means that the IRS must manually review each form after processing the original Forms 941.

The backlog of unprocessed ERC claims has been growing since the fall of 2022 , and as of April 5, 2023, the IRS has a backlog of approximately 929,000 unprocessed Forms 941-X . The reason for this rapid increase is uncertain, but the IRS website indicates that trained staff at two sites (Cincinnati and Ogden) are working on the inventory of Forms 941-X.

The delay in processing ERC claims is a significant concern for eligible employers who rely on these refunds to help with their finances. It is frustrating to wait for months without any communication from the IRS on when to expect the funds. As a true profitability consultant, OnCentive understands this frustration and has developed a funding program in partnership with several financial institutions. This program bypasses the typical eight to nine-month wait from the IRS and provides immediate cash infusion to clients within weeks.

For more information on OnCentive’s funding program, please visit https://www.oncentive.com/covid-19-erc-funding .

The delay in processing ERC claims is a significant issue that needs to be addressed promptly. Eligible employers require timely refunds to help them navigate their finances and maintain their operations. The IRS needs to provide clarity on the reasons for the delay and a timeline for resolving the backlog.

In the meantime, solutions such as OnCentive's funding program can help ease the burden for businesses affected by the delay.

OnCentive’s Response to the IRS’s Bulletins on Third Parties Improperly Processing Employee Retention Credit Claims

heather.reid@hrlogics.com (Heather Reid) — Wed, 29 Mar 2023 05:10:52 GMT

In a recent bulletin, the Internal Revenue Service (IRS) renewed a warning on Employee Retention Credit claims stating that false claims generate compliance risk for people and businesses claiming the credit improperly. This notice reinforces previous IRS bulletins from the Fall of 2022 that cautioned employers to be wary of third parties advising them to improperly claim the Employee Retention Credit (ERC) when their businesses do not meet eligibility requirements or are incorrectly calculating their claim. OnCentive supports this stance and the IRS’s dedication to educating employers on this important issue.

When the Inflation Reduction Act of 2022 was passed in August, the IRS received billions of dollars for Enforcement and Operations Support. The agency now has the resources to take a very close look at tax filings for discrepancies and fraud, specifically related to COVID programs like the ERC.

Further, there has been a significant increase in new entrants to the tax credit service industry, seemingly driven by the economics available through the ERC program. The IRS noted in its bulletin that taxpayers are always responsible for the information reported on their tax returns and that penalties and interest will be applicable for inappropriate claims under this program. Accordingly, it is critical that taxpayers claiming benefits assess the capabilities of the service provider they choose and properly document their eligibility under the program.

Integrity is OnCentive’s operational cornerstone. Every ERC claim we process is qualified, documented, and calculated within the letter of the law. With a growing number of fly-by-night “pop-up” ERC shops using aggressive tactics to obtain clients, it is imperative business owners do their due diligence in vetting ERC consultants to help process their claim.

When evaluating an ERC company, employers should be on the lookout for these red flags:

Hourly rates in addition to contingency fees. Under no circumstance should a client be charged for communication as this is an expected and needed part of the qualification process.
Requesting payment to evaluate your eligibility. While you will need to provide company documents, information, and personnel time to assist your ERC processor with determining your business’s ERC eligibility, you should not have to pay for this service.
Requiring a portion of a “success fee” before filing your credit. Success is achieved at the finish line, and a PDF explaining your calculation is not the ERC finish line. A true success fee is collected at the time your company has received payment of the successfully claimed credit.
Companies without a history in tax credits. It’s important to evaluate the credit expertise your provider offers. Without a track record of success, how confident can you be with a company’s ability to maximize your credit while keeping you in compliance?
ERC-Only Pop-Up Shops. The CARES Act created a lot of pop-up ERC consultancy shops. But how is a solely ERC-focused company going to survive post-ERC? The truth is they won't survive, and they don’t intend to. These companies will not be around to provide support in the event your organization needs backup materials or answers to future questions.
Providers that don’t offer clients protection. The pandemic caused enough sleepless nights for business owners. You should not lose any additional sleep over whether or not your ERC company has your company’s best interests at heart.
Inability to provide references or case studies. A qualified partner with experience in ERC should have no problem providing you with references and case studies from similar industries.

The Difference in Working with a Credible ERC Partner, like OnCentive.

When determining ERC eligibility and correctly calculating claims, other ERC third parties may take shortcuts, opening your business up to risk. If your business does not in fact qualify for the ERC, you might be unaware until years down the road when faced with an audit.

To determine clients’ eligibility, OnCentive collects detailed information including an impact questionnaire, copies of previously filed payroll tax forms, PPP forgiveness documentation, and much more. Our Qualifications Team ensures each client goes through a thorough evaluation to determine if the business qualifies for the ERC.

Led by the premier credit experts in the country with our leadership team having 150+ years in the tax credit industry, OnCentive’s core competencies are tax credits and recovery programs. With $3 billion in incentives captured and $0 returned to the IRS, you can trust you are in good hands with OnCentive.

It is vital for business owners pursuing ERC or other credits to choose a partner with deep knowledge in all credits offered to businesses because claiming each recovery program independently without considering the impact of the other measures can lead to a significantly reduced benefit to your business.

What Businesses Are Eligible for ERC?

Originally introduced by the CARES Act, the Employee Retention Credit (ERC) was authorized by Congress to reward businesses that kept employees on payroll during the pandemic. This credit provides cash infusion to eligible businesses, up to $26,000 per W-2 employee.

For 2020, the ERC is available for businesses who employed less than 100 average full-time employees in 2019 and for 2021, the ERC is available for businesses who employed under 500 average full-time employees in 2019.

If your business experienced one of the following, you may qualify:

Experienced a reduction in revenue (50% in 2020; 20% in 2021)

2. Suspension (partially or fully) of normal business due to a government order

OnCentive reviews EVERY client to see if they meet the gross receipts test based on a significant decline in gross receipts to qualify for any quarter of 2020 or 2021. Additionally, OnCentive researches federal, state, county, & city government mandates to determine if/when the business was partially or fully suspended. For partial suspension, OnCentive ensures the suspension caused "more than a nominal effect" to the business's operations.

For those clients who cite supply chain disruptions, we request & review documentation provided by the client to substantiate these disruptions. These documents can include emails/notices from suppliers stating shortages due to forced closures, port closure documentation, and many others. We research these disruptions to ensure they were caused by a governmental order and not just a closure by choice.

While many ERC mills bend rules to push their clients towards qualifying for all quarters, OnCentive does not take the stance that all clients qualify for all quarters. After evaluation, we regularly determine client's do not meet the qualifying criteria for one or all quarters. Use caution when working with a third party that takes stances like “all businesses qualify” or “qualify for all quarters.”

How Important are Credit Calculations?

Many “pop-up” ERC vendors do not understand the nuances of correctly calculating your ERC claim. There are many factors one must consider when determining qualified wages. Improperly claiming the ERC could result in business owners being required to repay the credit along with penalties and interest.

OnCentive’s Calculations Team thoroughly calculates the amount of credit the client is eligible for in their qualified quarters. The team follows IRS aggregation & relative rules, properly accounts for any PPP funds or wage-related credits to avoid "double dipping,” and makes sure no credit per employee exceeds the maximum amount allowed.

OnCentive provides detailed calculation sheets showing how the credit amount was determined including employee names, where PPP & any wage-related credits were deducted (if applicable), and other all calculation parameters required by law were maintained.

How Does My Business Claim the Credit?

ERC mills will promise large sums of cash to your business but will charge up-front fees or outrageous hourly rates. Additionally, they will not offer audit protection as they do not want the risk involved with having their name on an erroneous claim.

OnCentive charges nothing up-front and works on success-based fees. We wait alongside our clients so they owe us nothing until they receive their funds from the IRS.

Once the entire ERC process is completed, each client is provided a finalized credit packet including qualifications & calculations. Copies of any applicable government mandates are also included. The "packet" also includes completed 941-Xs to claim the credit. The 941-Xs are signed by the client via secure Dochub and mailed to the IRS via certified mail so as to provide tracking as to when the IRS physically receives the amended forms.

Additionally, OnCentive’s 100% audit protection guarantee sets us apart from other tax credit companies and CPA firms. In the unlikely event that your credit is ever contested, the OnCentive team will defend our work and will fully refund any credits that are disallowed.

Hire Heroes USA and OnCentive Announce Support for Proposed Military Spouse Hiring Act

Tue, 14 Mar 2023 16:31:17 GMT

Partners Advocate for Legislation to Empower and Increase Employment Opportunities for Military Spouses

ALPHARETTA, GA. - Hire Heroes USA and OnCentive are proud to announce their support for the Military Spouse Hiring Act , proposed by Senator Tim Kaine. It has recently been reintroduced with bipartisan support to amend the tax code to incentivize businesses to hire military spouses. This important legislation would expand the Work Opportunity Tax Credit (WOTC) to military spouses, which currently offers employers up to $9,600 in tax credits for eligible new hires.

Military spouses face unique challenges when it comes to finding and maintaining employment. As they move from base to base, they often face frequent disruptions to their careers and difficulty finding new job opportunities. Notably, they have an unemployment rate that remains steady at 22%, which is 4-6 times higher than their civilian counterparts.

The Military Spouse Hiring Act aims to address this issue by providing employers with an incentive to hire military spouses by reducing tax liabilities for organizations hiring these individuals. According to studies conducted by the Department of Defense , military spouses are highly educated; however, they earn 25% percent less than civilians in comparable roles. Implementing this measure will help alleviate financial burdens on military families, resulting in substantial positive ripple effects for both the families and the surrounding communities.

"We are excited to support the Military Spouse Hiring Act and its aim to incentivize employers’ hiring practices while also addressing the high unemployment rate among military spouses,” said Kelly Grivner-Kelly, Hire Heroes USA Serving Spouses Program Manager. “We believe that this legislation will provide much-needed support to military spouses as they navigate the challenges of finding meaningful employment."

Hire Heroes USA is a nonprofit organization dedicated to providing job search assistance to transitioning military members and their spouses. OnCentive is a tax credit consultancy that specializes in helping businesses take advantage of tax credits and hiring incentives for targeted groups, including veterans.

The joint support of Hire Heroes USA and OnCentive for the Military Spouse Hiring Act will include a comprehensive awareness campaign aimed at educating employers and the military community about the benefits of hiring military spouses and the tax incentives available through the Work Opportunity Tax Credit.

For more information about the Military Spouse Hiring Act and the joint support campaign, please contact Hire Heroes USA Communications Manager London Brown.

For Media Inquiries:

London Brown

Communications Manager

lbrown@hireheroesusa.org

About Hire Heroes USA

Hire Heroes USA is a nonprofit organization that empowers US military members, veterans and spouses to succeed in the civilian workforce. Our organization offers personalized one-on-one coaching, professionally revised resumes, mentoring, workshops, a job board, career fairs and more, to tens of thousands of job-seeking veterans and military spouses annually. All Hire Heroes USA services are offered online or over the phone. Funded exclusively through public donations and private grants, we provide our services at no cost to clients.

Since Hire Heroes USA’s founding, more than 75,000 Hire Heroes USA clients have found success in their job search. Hire Heroes USA prioritizes transparency, earning a 4-star rating from Charity Navigator and the GuideStar Platinum Seal. For more information about our organization, visit hireheroesusa.org.

About OnCentive

From Soldiers to Commanders-in-Chief: A Look at US Presidents with Military Experience

Mon, 20 Feb 2023 16:25:02 GMT

Presidents Day is a federal holiday in the United States that is observed on the third Monday in February. Originally established to honor George Washington, the first President of the United States, it now recognizes all of the men who have held the highest office in the country. Of the 46 individuals who have served as President of the United States (as of 2021), 30% (or 14 Presidents) have served in the military. This includes those who served on active duty in various branches of the military, as well as those who served in the National Guard or state militias.

Here is a list of all US Presidents who have served in the military, along with their branch of service and rank:

George Washington - Continental Army, General
James Monroe - Continental Army, Major
Andrew Jackson - US Army, Major General
William Henry Harrison - US Army, Major General
John Tyler - Virginia Militia, Captain; US Army, Colonel
Zachary Taylor - US Army, Major General
Franklin Pierce - US Army, Brigadier General
Abraham Lincoln - Illinois Militia, Captain
Ulysses S. Grant - US Army, General
Rutherford B. Hayes - US Army, Major General
James A. Garfield - US Army, Major General
Chester A. Arthur - New York Militia, Brigadier General
Benjamin Harrison - US Army, Brigadier General
William McKinley - US Army, Major
Theodore Roosevelt - US Army, Colonel
Harry S. Truman - Missouri National Guard, Colonel; US Army, Colonel
Dwight D. Eisenhower - US Army, General of the Army
John F. Kennedy - US Navy, Lieutenant
Lyndon B. Johnson - US Navy, Commander
Richard Nixon - US Navy, Lieutenant Commander
Gerald Ford - US Navy, Lieutenant Commander
Jimmy Carter - US Navy, Lieutenant
Ronald Reagan - US Army Air Forces, Captain
George H.W. Bush - US Navy, Lieutenant Junior Grade
George W. Bush - Texas Air National Guard, Lieutenant; US Air Force, Captain

Military experience can provide a unique set of leadership skills that can be particularly valuable for individuals who aspire to become presidents or business leaders. In the military, leaders are often required to make difficult decisions quickly and with limited information, which requires a high degree of strategic thinking and adaptability. Military leaders are also trained to remain calm under pressure and to lead their team through challenging situations. These skills can be invaluable for presidents and business leaders who must navigate complex and rapidly changing environments.

Additionally, military experience can instill strong values and ethics in leaders. In the military, leaders are trained to operate with a high degree of integrity and to prioritize the safety and well-being of their team members. These values can translate into effective leadership in other settings, where leaders must make decisions that are in the best interest of their stakeholders, whether it be employees, customers, or the broader public. Ultimately, military experience can provide a valuable foundation for developing the leadership skills necessary to succeed as a president or business leader.

If you’re an employer looking to hire someone with leadership, decisiveness, strong values, and ethics, consider hiring someone with military experience to join your organization.

OnCentive Named as One of the Most Innovative Companies of the Year 2023

Tue, 07 Feb 2023 21:12:14 GMT

Digital First Magazine Names OnCentive as One of the Most Innovative Companies of the Year 2023

February 7, 2023 (Delaware) - Over 3,000 state & federal incentive programs are offered by the US government to reward business owners for basic business functions like retaining employees, job creation, innovating internal processes, and more. Too often, the large organizations get benefitted the most who need it the least from these government programs simply because they have the resources, personnel, and expertise to do so. Most small and midsize businesses are neither aware of these incentive programs nor have the resources.

Located in Birmingham, Alabama, OnCentive is one of the innovative start-ups helping small and midsize businesses maximize their profitability through business incentives and tax credits. The company pairs its expertise with state-of-the-art credit technology to identify tax credits and incentive opportunities for clients. So far, OnCentive has secured over $3 billion in tax credits and incentives, with $0 returned to the IRS.

Founded by Experts with a Passion for Profitability

The journey of OnCentive began when Co-Founders, Shannon Scott and Frank Brown, identified the need for a service-first approach to tax credits in the incentives industry. Shannon is considered one of the premier experts in the credit industry and often consults the House Ways and Means and Senate Finance Committees on business incentives and tax credit programs. Frank has been involved in the tax credit industry for 30 years, specializing in tax credit and incentive work, and after 8 years in private practice started TaxBreak in 1997, a tax credit consulting firm.

“Our mission is to help American employers take advantage of the thousands of state and federal credits and incentives and help clients achieve maximum profitability,” reveals Shannon Scott (CEO & Co-founder, OnCentive). While many companies dabble in tax credits, OnCentive’s sole focus is tax credits.

Key Offerings

OnCentive helps employers capture government incentives & recovery programs, like the Covid-19 Employee Retention Credits, the Work Opportunity Tax Credit, Research and Development Tax Credit, Disaster Employee Retention Credit, State & Geographic Incentives, and many others.

Seasoned Team

OnCentive is led by a team of CPAs, tax attorneys, and credit experts with 150+ years of combined tax experience who resonate with the company’s dedication to helping American employers grow their bottom line.

Client Satisfaction is the Top Priority

According to Shannon, client satisfaction and maximizing profitability to grow their business is OnCentive’s number one goal. Therefore, OnCentive’s team works towards maximizing their clients’ profitability so that they can put their hard-earned money back in their hands to grow their business. Following mentioned are some of the recent client testimonials vouching for OnCentive.

Arc of Tuscaloosa said, “The OnCentive team helped our non-profit raise hourly wages to attract and retain employees through a challenging labor market. The services we provide our clients are critical to the community. Thanks to OnCentive, we are able to remain competitive as an employer. Their team is great to work with and, without a doubt, will help you maximize the amount your organization can recover.”

Likewise, Don Benoit, Owner of D&T Crawfish, shared, “If it wasn’t for their expertise and understanding of the qualification criteria, we would have never attempted to apply for this credit. Do yourself a favor and let them walk your company through this simple process to gain a big reward!”

Strong Industry Partnerships, the Key to Success

For OnCentive, having a strong partnership and partner management program has been the key to its continued success. The company also looks for innovative ways to penetrate the marketplace to increase brand awareness and knowledge of tax credits and business incentives to make them accessible to businesses of all sizes in all industries.

Exciting Projects to Watch Out for in 2023

OnCentive’s CEO & Co-founder, Shannon Scott, shares that Trak Capital, their investment company, has recently acquired and launched additional companies to build out a complimentary suite of HR technology brands that focus on profitability and compliance. The suite of brands includes tax credits and business incentives, ACA compliance, unemployment claims management, and I-9 verification. Trak Capital is constantly looking for new solutions to fill gaps in the profitability and compliance space.

Therefore, in early 2023, Shannon and his team are planning to make an exciting announcement that will unify these technologies for businesses of all sizes in all industries.

For More Info: https://lnkd.in/gEihnYZg

Maximizing Benefits with Heroes: The Power of Hiring Veterans in the Workplace

heather.reid@hrlogics.com (Heather Reid) — Fri, 03 Feb 2023 19:35:36 GMT

Hiring a veteran can greatly benefit your organization in several ways. Not only do veterans bring a unique set of skills, experience, and values to the workplace, but they also bring strong leadership abilities, adaptability, and a solid work ethic.

First and foremost, veterans are known for their exceptional leadership skills. Military service requires individuals to take on leadership roles and make quick, decisive decisions under challenging circumstances, skills that translate well to the civilian workplace. This can be especially valuable in a business setting, where effective leadership is crucial for success.

Additionally, veterans have a proven track record of adaptability and flexibility. They are trained to adapt to new environments, technologies, and cultures, making them ideal for a constantly changing business world. They are also skilled at working well in teams and as part of a larger organization.

Beyond their skills and experience, veterans also bring a strong sense of responsibility and commitment to the workplace. They are reliable and dedicated to completing tasks to the best of their ability, and they understand the importance of following rules and procedures.

But the benefits of hiring a veteran don't stop there. According to the Society for Human Resource Management (SHRM) , companies that have a diverse workforce, including veterans, tend to have higher levels of innovation and improved financial performance. In other words, hiring a veteran can bring tangible business benefits in addition to the intangible benefits they bring to your team.

Additionally, the Work Opportunity Tax Credit (WOTC) provides businesses with financial incentives for hiring eligible veterans, including those who are long-term unemployed and have service-connected disabilities. Employers can receive up to $9,600 in tax credits per new hire, providing a significant benefit to companies that take advantage of this program. In addition, tax-exempt organizations may also be eligible for WOTC. This credit serves as a way for businesses to give back to those who have served our country and support their successful transition into the civilian workforce.

There are organizations like Hire Heroes USA that helps connect employers with veterans looking for meaningful employment. Hire Heroes USA provides free career services to service members, veterans and military spouses who are seeking jobs in the civilian workforce. The organization provides personalized one-on-one coaching resume services, mentoring, workshops, a job board, career fairs, and more. In 2021, Hire Heroes USA helped place 12,594 veterans and military spouses with an average salary of $62,680. OnCentive and Hire Heroes USA established a partnership last year to empower employers to hire veterans. OnCentive has committed to an ongoing donation to Hire Heroes USA equal to 1% of annual profits generated from OnCentive clients claiming the Work Opportunity Tax Credit.

The reasons to consider hiring a veteran are numerous and compelling. From their leadership skills and adaptability to their strong work ethic and sense of responsibility, veterans can be valuable assets to any organization. Don't miss out on the opportunity to bring the unique skills and experiences of a veteran to your team.

High Turnover Industries Can Benefit From Hiring Incentives

heather.reid@hrlogics.com (Heather Reid) — Fri, 06 Jan 2023 16:39:28 GMT

High turnover industries often face the challenge of continuously hiring and training new employees, which can be costly and time-consuming. However, there are several federal and state hiring incentives available that can help offset these costs and encourage businesses to hire and retain certain types of employees.

One such incentive is the Federal Work Opportunity Tax Credit (WOTC) , which provides a tax credit to businesses that hire individuals from certain target groups, including veterans, temporary assistance for needy families (TANF) recipients, and ex-felons, among others. This credit can be worth up to $9,600 per eligible new hire and can be claimed for the first year of employment.

In addition to the WOTC, there are also various state-level hiring incentives available, such as credits for hiring employees from disadvantaged backgrounds or those living in high-unemployment areas. These credits can vary in amount and eligibility requirements, but can provide a significant financial benefit to businesses that take advantage of them.

While it can be a challenge for businesses in high-turnover industries to stay up-to-date on the various hiring incentives available, the financial benefits of doing so can be significant. By thoroughly evaluating their eligibility for all available credits and incentives, businesses can offset the costs of hiring and training new employees, helping to reduce turnover and improve retention rates.

Here are some of the high turnover industries that can benefit from tax credits and hiring incentives:

Retail
Hospitality
Customer Service
Call Centers
Manufacturing
Staffing

So, if you're in a high-turnover industry and looking for ways to reduce your hiring costs, don't overlook the potential benefits of federal and state hiring incentives. With careful evaluation and compliance, these credits can provide a valuable financial boost to your business.

Contact the experts at OnCentive to learn more or receive a complimentary eligibility assessment.

OnCentive Announces Sabrina Champagne as President of State Tax Credits

heather.reid@hrlogics.com (Heather Reid) — Tue, 20 Dec 2022 21:23:04 GMT

Leading Tax Credit Consultancy Expands Portfolio of Geographic Based Incentives

December 20, 2022 (Birmingham, AL) - OnCentive , the nation’s leading profitability and compliance consulting firm, is pleased to announce the appointment of Sabrina Champagne as President of State Tax Credits and Negotiated Incentives. Champagne joins OnCentive’s Leadership Team, reporting directly to Shannon Scott, OnCentive CEO.

Champagne brings a wealth of geographic based incentives to OnCentive’s expanding tax credit portfolio. She has spent the past two decades engaged in various aspects of economic development including providing federal and state tax credit advice to a number of leading Fortune 500 companies which yielded millions of dollars in annual savings.

“We are thrilled to have Sabrina join OnCentive with her wealth of tax credit knowledge,” said Shannon Scott, CEO of OnCentive. “She is adding another crack to the glass ceiling as the first female president of state tax credits. Her expertise will help drive industry-leading profitability solutions to companies across the nation.”

At OnCentive, Champagne is responsible for establishing an extensive geographical based incentive program, overseeing the company’s state tax credit team, and building key relationships with government representatives.

Through Champagne’s tenured tax credit career, she has facilitated numerous negotiation package deals to offset costs associated with corporate expansion and training activities. She has also worked with the Ministry in Canada to implement the Targeted Wage Subsidy program for a large US retail corporation.

“I am excited to lead the charge on geographic incentives to help our clients maximize profitability,” said Sabrina Champagne, OnCentive President of State Tax Credits and Negotiated Incentives. “By using a consultative approach when forming partnerships with clients, we will be able to capture both negotiated and statutory credits to reduce their effective tax rates.”

About OnCentive

Media Contact

Vanessa Tyndall

press@oncentive.com

Acquisition International Reveals the 2022 Winners of the M&A Awards

Mon, 19 Dec 2022 19:16:07 GMT

United Kingdom, 2022 – Acquisition International is proud to announce the winners of the M&A Awards.

As the sixth M&A Awards programme unfolds, we would like to take a moment to reflect upon the achievements of the year gone by. We can appreciate how far we’ve all come and, for the future ahead, we can count on this experience to guide our way through any new challenge.

This year has been brimming with developments and growth for businesses within the sectors of technology, healthcare, advanced manufacturing, and more. Here we take a closer look at a plethora of companies harnessing their skills, responding to trends, and utilising teams bursting with invigorating passion.

After a difficult period of time, it is astonishing how far these businesses have managed to develop even in the face of adversity. Now it’s time for them to bask in their glory!

Our Awards Coordinator, Holly Blackwood, commented on the magnificent success of the winners in this supplement: “I am very pleased to announce the winners of this awards programme. They have done an outstanding job this year and we look forward to seeing where their success takes them in the future.”

To find out more about these prestigious awards, and the dedicated enterprises that have been selected for them, please visit https://www.acquisition-international.com/awards/ma-awards/ where you can view our winners supplement and full winners list.

ENDS

About SME News

SME News draws on our UK wide network of industry insiders to provide you with the latest news, cutting edge features and latest deals from across the UK SME landscape.

Alongside our quarterly publication we also offer an easy-to-use website, newsletter, and a series of awards programmes, making SME News much more than just a magazine, but instead a vital resource.

Bought to you by AI Global Media, the international provider of corporate news and information, this unique magazine is the perfect resource for the CEOs, leaders and decision makers in the UK based SMEs looking to keep their finger on the pulse and stay ahead of the competition.

About AI Global Media

Since 2010 AI Global Media ( https://www.aiglobalmedialtd.com/ ) has been committed to creating engaging B2B content that informs our readers and allows them to market their business to a global audience. We create content for and about firms across a range of industries.

Today, we have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience. Our flagship brand, Acquisition International, distributes a monthly digital magazine to a global circulation of 108,000, who are treated to a range of features and news pieces on the latest developments in the global corporate market.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Original Source: Acquisition International

M&A Awards 2022: Magazine Issue

OnCentive Launches Newest Tax Credit Technology, ERC Connect

Mon, 28 Nov 2022 19:48:34 GMT

Credit Consultancy Continues to Drive Innovation for Tax Credit Processing

FOR IMMEDIATE RELEASE

November 28, 2022

BIRMINGHAM, ALABAMA — OnCentive, the nation’s leading tax credit consultancy, announced today the launch of their newest tax credit technology, ERC Connect. The all-in-one platform allows OnCentive clients pursuing the Covid-19 Employee Retention Credit (ERC) to streamline the eligibility process, upload all necessary forms and documents within the application, and communicate with the OnCentive team.

“Having helped clients find over $1 billion in ERC credits, we built ERC Connect to streamline the collection of necessary data needed for credit qualification and processing,” said Shannon Scott, OnCentive CEO & Co-Founder. “It is now easier for clients to upload data and view credit updates.”

With ERC Connect, clients have full visibility into where they are in the credit process, can request third party data uploads, and access all information related to their credit in a secure, easy-to-use portal.

The launch of ERC Connect gives OnCentive’s ERC clients:

Complete Transparency: ERC Connect offers clients full visibility of their application, outstanding documentation and information requirements, and insight into where their claim stands within the credit process.

Increased Usability: Using ERC Connect’s user-friendly interface, clients can complete all necessary forms, questionnaires, and document requirements needed to assess and process their Employee Retention Credit claim.

Streamlined Communication: Eliminating the need to go back and forth over email, ERC Connect serves as a centralized communication hub between the client and the OnCentive team.

Ultimate Flexibility: ERC Connect allows clients to assign team members, partners, and trusted advisors to upload required documents on their behalf. This feature is especially beneficial for trusted advisors who need to directly upload secure documents required by the IRS for the credit refund.

“We listened to the challenges our clients were having when providing the information needed to process their credit, which is why we built ERC Connect,” said Chris Wright, OnCentive Chief Product Officer. “Our proprietary platform streamlines processing and provides clients with real-time updates.”

Originally enacted through the CARES Act , Congress passed this legislation to offer relief to businesses who retained employees during the pandemic. The ERC can be worth up to $26,000 per W-2 employee. Despite the substantial relief ERC offers, many employers are not aware of their eligibility.

Led by tax attorneys and CPAs with over 130 years of combined experience, OnCentive’s ERC process is centered on integrity, offering clients honest calculations backed by audit & contested-credit protection. The consultancy prides itself on true profitability partnership; waiting alongside clients for the IRS to issue payments before collecting success fees.

About OnCentive:

OnCentive is the nation’s leading profitability consulting firm. Leveraging their leadership's 130 years of combined credit expertise and their state-of-the-art custom technology, OnCentive captured $3 billion in government incentives for clients, with $0 returned to the IRS.

Media Contact:

Vanessa Tyndall

press@oncentive.com

OnCentive CEO To Speak On Federal Relief Programs for Employers at Natural Disasters Expo in Anaheim, California

Mon, 07 Nov 2022 21:03:24 GMT

OnCentive CEO To Speak On Federal Relief Programs for Employers at Natural Disasters Expo in Anaheim, California

Leading Tax Credit Consultancy to Exhibit and Present About Federal Disaster Recovery Programs

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BIRMINGHAM, ALABAMA, USA, November 7, 2022 / EINPresswire.com / -- The Natural Disasters Expo will host disaster preparation specialists and emergency response professionals at the Anaheim Convention Center on November 9th and 10th, 2022. The expo will present 300 state-of-the-art technology experts and 100 disaster industry-leading speakers. The free event is for disaster preparation specialists to find the newest disaster products, services, and resources. ‍

OnCentive will be exhibiting at booth #895 . Attendees are encouraged to stop by the booth to play games, enter for a chance to win giveaways, and learn about Federal disaster relief programs available to employers impacted by natural disasters and COVID-19. These programs offer relief in the form of tax credits and reward employers for keeping employees on payroll.

OnCentive’s Chief Executive Officer, Shannon Scott , will be speaking alongside influential disaster experts from companies including The Tornado Hunters, NOAA, FEMA, the American Red Cross. Disaster preparation specialists will be educated on ways to prepare for natural disasters, protect from them, and clean up after a disaster.

“I am thrilled that I was invited to speak at the Natural Disasters Expo on tax credit relief programs that the Federal government puts in place to help businesses impacted by disasters,” stated Shannon Scott, OnCentive CEO & Cofounder. “Employers affected by natural disasters or the pandemic are forced to make tough decisions to stay afloat, which often means reducing overhead and evaluating whether to retain employees. It is vital to be informed about Federal disaster relief programs, like the Employee Retention Credit, which offers financial incentives for companies who keep employees on payroll.”

Scott will be speaking at Theater 8 at 2:00 PM on Thursday, November 10th, 2022. Among the many tax credits Scott will be presenting, he will be highlighting disaster recovery programs such as Employee Retention Credit (ERC). This is a federal tax credit designed to motivate employers to retain employees after natural disasters and the COVID-19 pandemic.

The disaster relief ERC is worth up to $2,400 per qualified employee and offsets your business’s federal income tax liability. The COVID-19 ERC is a refundable payroll tax credit and is worth up to $26,000 per W-2 employee. Eligible businesses may qualify for these lucrative credits for continuing to pay their employees during the time-frame that the business was impacted by the disaster.

Shannon Scott and the OnCentive team are excited to meet attendees during this two day event. OnCentive simplifies the process of identifying and qualifying for business incentives and tax credits; maximizing your business’s profitability, and putting your hard earned money back in your hands so you can recover and grow your business.

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About OnCentive:

OnCentive is the nation’s leading profitability consulting firm. Leveraging their leadership's 100 years of combined credit expertise and their state-of-the-art custom technology, OnCentive captured $3 billion in government incentives for clients, with $0 returned to the IRS.

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Media Contact:

Vanessa Tyndall

press@oncentive.com

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REV Birmingham: WHY ARE BUSINESSES CHOOSING TO MOVE TO BIRMINGHAM? ONCENTIVE HAS NO REGRETS!

Thu, 27 Oct 2022 20:55:38 GMT

Businesses are on the move to Birmingham! Meet Shannon Scott, the CEO of OnCentive and Trak Capital , who recently moved his company from Gadsden to Birmingham, Alabama this past year. OnCentive helps small and mid-size businesses by investing extra capital into their organization. The team at OnCentive consults with clients on federal programs that they are potentially eligible to receive and qualify for business incentives and tax credits.

To learn more about OnCentive and why they chose to move to Birmingham, check out the interview below! Or click here to explore more options.

Click here for the original article in REV Birmingham.

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REV Birmingham

How the Employee Retention Credit Can Help the Construction Industry

Thu, 27 Oct 2022 20:25:41 GMT

As the COVID-19 pandemic spread across the United States, the economy was damaged severely leading many businesses to shut down temporarily or even close down permanently. However, the federal government provided some relief to this crisis through the CARES Act which allowed billions of dollars in economic stimulus to be released through avenues such as the Employee Retention Credit (ERC) and the Paycheck Protection Program (PPP).

The ERC allows eligible employers a refundable payroll tax credit, up to $26,000 per W-2 employee, for continuing to keep Americans on payroll during the pandemic. Employers, desperate due to the circumstances caused by the pandemic, started taking out SBA-guaranteed PPP loans in 2020 but did not focus on ERC funding at all. Thanks to subsequent legislation, ERC was made available not only to businesses that were impacted by the pandemic, but also those who received PPP loans, leading more companies to be eligible for ERC.

Many companies within the construction industry have taken advantage of the ERC program which rewarded them for keeping employees on payroll during the pandemic. Construction companies that have benefited from this program and have received hundreds of thousands to millions of dollars in refundable payroll tax credits. While many have reaped the benefits of the ERC, many construction companies still have not because they think they don’t qualify due to never shutting down or not seeing a decrease in revenue. However, there are many factors that can make your construction business eligible for the ERC including:

Social distancing mandates decreased the number of workers on a job site
Curfew caused hours of operation to be shorter, leading to longer projects
Supply chain issues led to material shortages from suppliers of important goods
Government orders caused projects to slow down or become suspended due to mandates

For example, due to the pandemic creating supply chain interruptions, a restoration services company in Alabama received a refund of $949,000. A welding company in Louisiana, who did not have a decline in gross receipts, received a refund of $148,000 thanks to the ERC program.

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5 Reasons Why Construction Companies Should Take Advantage of ERC:

Most Construction Companies are Eligible for ERC: There are two ways to be deemed eligible to receive the ERC: 1) Significant decline in gross receipts (50% in 2020; 20% in 2021), OR 2) Full or partial business suspension due to a government order. While many are aware of the first test, many businesses don’t understand eligibility under the second. Most construction companies qualify for ERC due to a business disruption caused by government mandates.
Up to 26,000 per Employee: In 2020, the maximum ERC credit was $5,000 per employee. Under the Consolidated Appropriations Act (CAA) of 2021, the maximum credit increased to $7,000 per employee per quarter for the first three quarters (2021 ERC maximum credit of $21,000). During the rollout of the ERC and Paycheck Protection Program (PPP) under the CARES Act, businesses had to elect which one of these programs to utilize. PPP was the general selection for a lot of businesses because it was easier to sign up for a small business administration-backed loan than to figure out the details of the ERC tax credit and eligibility. Further legislation implemented and expanded eligibility requirements making it possible for employers to take advantage of both programs, making it an even greater opportunity for construction businesses.
ERC Continues: The Infrastructure Investment and Jobs Act (IIJA) of 2021 moved ERC’s expiration date, repealing this program for the fourth quarter of 2021. However, construction companies are still allowed to submit their tax filings for the previous covered periods in 2020 and 2021.
A Cash Refund: The ERC is calculated based on qualified wages paid per employee quarterly, not from the business payroll tax but from quarter payroll taxes based on how many full-time W-2 employees the company had during its period of eligibility. By filing a 941-X, employers can apply the credit to previously paid payroll taxes which essentially makes the ERC a cash refund from the IRS.
It’s Easy When Working With a Trusted Advisor: When ERC eligibility requirements have been met, the credit can be claimed on previously filed payroll tax forms. ERC specialists, like OnCentive , can evaluate whether the company is eligible for the credit, calculate qualified wages, and prepare and file for the credit on your company’s behalf. OnCentive even works with a trusted funding partner so you can receive your ERC funds within weeks versus waiting the typical six to nine months on your refund from the IRS.

The ERC is just one of many business incentives designed to help with the long-term effects of Covid-19. Many construction companies have utilized their ERC funds to invest or expand their business, employ more American workers, or simply to just stay afloat. Talk to a tax credit expert at OnCentive to learn more about ERC and additional tax credits including the Work Opportunity Tax Credit (WOTC) and Research and Development (R&D) tax credit.

Dispelling ERC Myths: Why Businesses Need to Pursue the Employee Retention Credit

Wed, 05 Oct 2022 21:25:03 GMT

Many businesses and nonprofits are unaware or are misinformed about their eligibility for the Employee Retention Tax Credit (ERC) . Made available through the CARES Act , Congress created the ERC to provide financial relief to employers who retained employees during the Covid-19 pandemic.

If your organization is deemed eligible, it could receive up to $26,000 per W-2 employee. As a payroll tax credit, the ERC can act as a cash infusion to your bottom line allowing you to reinvest in your people and your business.

OnCentive , the nation’s leading tax credit consultancy, helps organizations navigate the complexities of the ERC. Below are some case studies to demonstrate how impactful the ERC can be for your business:

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Construction Company

● 131 Employees

● OnCentive secured over $2.2 Million in refundable (cash) credits

Charter School

● 61 Employees

● OnCentive secured over $1.1 Million in refundable (cash) credits

Staffing Firm

● 4 Employees

● OnCentive secured over $98,000 in refundable (cash) credits

So how does your organization begin to pursue ERC? A business can prove ERC eligibility in one of two ways:

1) Experienced a decline in gross receipts.

2) Experienced a pandemic-caused business interruption due to a government order.

While those qualifying criteria may seem clear-cut, they are not. Unfortunately, changes to the legislation and misinformation from ill-informed advisors have made it confusing for business leaders to know if their businesses are eligible and how to qualify. Let's set the record straight to dispel the most common ERC myths:

ERC Myth #1 : I took PPP, so I am ineligible for ERC.

ERC Truth: PPP recipients may also qualify to receive ERC.‍

When the CARES Act was first enacted, employers had to decide between taking the PPP or ERC. After the Consolidated Appropriations Acts was signed into law in December 2020, employers had the opportunity to take advantage of both PPP and ERC. Whether you have taken first and/or second rounds of PPP, your business may still qualify for ERC. In fact, many of OnCentive’s clients have done so. However, you cannot count wages paid by PPP towards ERC wage calculations. That is why it is important to work with an expert like OnCentive to back-out and calculate qualified wages correctly to keep you and your business in compliance.

ERC Myth #2 : I remained profitable/did not experience a decline in gross receipts during the pandemic, so I am ineligible for ERC.

ERC Truth: You can qualify for ERC without a decline in gross receipts.

Qualifying an organization based on business interruptions like shutdown orders, supply chain issues, and business suspensions are where your business needs the knowledge of OnCentive’s ERC experts. Their team conducts a full investigation into the impact the pandemic had on your business operations due to federal, state, or local government orders.

ERC Myth #3 : I was not affected by a shutdown order, so I am ineligible for ERC.

ERC Truth: Just because your business’ headquarters didn't close its doors due to a local order, doesn't mean it escaped the impact of national mandates.

Often times, businesses felt the impact of the pandemic through the effect mandates had on their supply chain. OnCentive will work with your business to pinpoint how supply shortages and how shipping ports impacted your ability to operate. Their team of qualification experts will accurately document how supply chain issues impacted your business and calculate qualified wages based on those disruptions.

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ERC Myth #4 : My CPA said I wouldn't qualify. I don't want to waste my time and money.

ERC Truth: CPA’s often look at a business’s decline in gross receipts for eligibility and don’t have the resources to dig into operational impacts.

In fact, many CPA’s and accountants have partnered with OnCentive to qualify and file for their clients because of their leadership’s knowledge and expertise in these credits.

By choosing to work with OnCentive, you can rest easy knowing that if you are not eligible for ERC, you owe them nothing. If they find your business is eligible, they will qualify, calculate, and document impacts for eligibility and file for the credit on your behalf. Since OnCentive works on success-based fees, you owe them nothing until you receive your money from the IRS.

ERC Myth #5 : I don’t have the luxury of waiting a year for the IRS to pay my ERC. I need a cash infusion now.

ERC Truth: You can receive your refundable cash credit almost immediately through OnCentive’s trusted funding partner instead of waiting months to receive it from the IRS.

Schedule a free eligibility assessment with one of the experts at OnCentive today to learn more about the ERC and our funding process.

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Vanessa Tyndall

Executive Vice President of Marketing

OnCentive CEO, Shannon Scott, Among Top 100 Magazine’s Innovators & Entrepreneurs

Tue, 06 Sep 2022 19:30:03 GMT

The leading profitability consultancy OnCentive’s Co-Founder & CEO, Shannon Scott, was selected as one of Top 100 Magazine’s 2022 list of “Top Innovators & Entrepreneurs.” Having built and sold over 15 companies, Scott is a serial entrepreneur, investor, and profitability consultant who is passionate about putting money back in the hands of the small businesses that drive the economy.

“I am extremely honored to be listed as one of the Top 100 Innovators and Entrepreneurs by Top 100 Magazine,” stated Scott. “Throughout my career, I have focused on building organizations that help businesses drive growth through innovative means and technology. I continually look for new ways and build new technologies for small to mid-sized businesses to leverage to increase their profitability and compliance.”

Considered one of the premier experts in the tax credit industry with over 20 years’ experience, Scott often consults the House, Ways and Means and Senate Finance Committee’s on business incentive and tax credit programs.

Scott’s latest venture, OnCentive, pairs his expertise in business incentives with his passion for building cutting edge technologies. Earlier this year, OnCentive launched their industry-leading Profitability Platform which helps businesses automatically capture hiring incentives like the Work Opportunity Tax Credit.

To read more about Shannon Scott in Top 100 Innovators & Entrepreneurs magazine, click here.

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About OnCentive

OnCentive’s leadership's 100 years of combined tax experience, coupled with our risk-free model is why thousands of hard-working business owners trust OnCentive experts to recover more than $2 billion in tax, hiring, and other business incentives. OnCentive simplifies the process of identifying and qualifying for business incentives and tax credits; maximizing your business’s profitability and putting your hard-earned money back in your hands so you can use it to grow your business.

OnCentive Appoints Chief Legal Officer to the Executive Leadership Team

Thu, 25 Aug 2022 19:35:35 GMT

Kathryn Modeer joins OnCentive to Bring Extensive Legal Expertise to the Organization

The nation’s leading compliance & profitability firm, OnCentive, announced today the appointment of Kathryn Modeer to its newly created role of Chief Legal Officer and General Counsel. Reporting directly to CEO Shannon Scott , Modeer will oversee all legal, corporate governance, enterprise risk management, compliance, litigation, regulatory, corporate, as well as outside counsel management.

“From the inception of OnCentive we have always set out to hire the best and brightest team in the industry,” stated Shannon Scott, OnCentive CEO. “Kathryn brings years of experience in corporate law and litigation and I couldn't be more thrilled to have her as our newest addition.”

Modeer is an accomplished litigation attorney with years of experience in mass tort and product liability matters. She was most recently Senior Associate Attorney at Husch Blackwell, a nationwide full-service business and litigation law firm, where she worked with clients ranging from small businesses to major corporations.

Modeer earned a juris doctorate from The Pennsylvania State University Dickinson School of Law in 2014. After law school, she completed a clerkship in the United States District Court for the Southern District of Illinois. Modeer graduated from Auburn University in 2010 with a Bachelors of Science degree in Business Economics.

“I’m honored to join the accomplished executive OnCentive team,” said Modeer. “With inflation at a 40-year high, small and mid-size businesses are experiencing more challenges than ever. OnCentive and its portfolio companies are doing exciting work to assist these businesses with maximizing their profitability and increasing their government compliance.”

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Read the press release here.

About OnCentive

OnCentive is the nation’s leading profitability and compliance consulting firm. Leveraging their leaderships’ 100 years of combined credit expertise and their state-of-the-art custom technology, OnCentive helps businesses maximize government incentives and tax credits. OnCentive has helped their clients capture over $2 billion in government incentives & recovery programs, like the Covid-19 Employee Retention Credits , the Work Opportunity Tax Credit , Research and Development Tax Credit , Disaster Employee Retention Credit , and many others.

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Driving financial wellness for you and your employees

Tue, 16 Aug 2022 21:33:24 GMT

Employers and their employees have been hit by the global pandemic, inflation, and financial uncertainty over the past two years, leaving us all distracted and searching for more money.

At Immediate, we help employees maximize their earned but unpaid wages by enabling access between pay periods. In tandem, Immediate has partnered with OnCentive, who helps employers maximize available tax credits through their deep industry experience and expertise.

Both are free to the employer and have far reaching financial wellness benefits for both the employer and employee.

With Immediate, employees no longer need to turn to high-interest, predatory loans which are crippling Americans with usurious rates of up to 664% APR. Based on a recent survey of users, 75% of employees believe that access to earned wages alleviate financial stress, keeping them more engaged at work. Immediate is proven to reduce turnover by 40% . To better your employees’ financial wellness is to better your bottom line by decreasing turnover. Replacing an employee can cost up to 6 months of their pay .

OnCentive is able to find employers the tax credits regardless of whether they took a PPP loan, had no decline in revenue due to the pandemic, or are non-profit organization. These funds provide valuable resources needed to continue and accelerate business.

Maximize your profitability with OnCentive while retaining your employees with Immediate’s earned wage access. What’s not to love about this partnership? Learn more about Immediate at joinimmediate.com.

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About Immediate:

Immediate partners with employers to provide their employees with wages that have been earned but not paid, whenever they are needed. With seamless time tracking and payroll integrations, same-day and next-day bank transfers, and the ability to put earnings directly on a debit card, Immediate is working to improve financial wellness and eliminate cycles of debt for employees by allowing them to access their hard-earned wages. To learn more, visit http://joinimmediate.com .The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Lindsey Seal

VP of Partnerships at Immediate

OnCentive Announces Employee Retention Credit Funding Partnership to Accelerate Clients’ Payments

Thu, 04 Aug 2022 21:15:47 GMT

OnCentive Clients Can Receive COVID-19 Employee Retention Credit Within Weeks Versus Months

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August 4, 2022 (Birmingham, AL) - The nation’s leading profitability consulting firm, OnCentive , announced today the ability to fund clients’ COVID-19 Employee Retention Credit (ERC), helping businesses secure a much-needed infusion of cash flow without waiting on the Internal Revenue Service.

Through a newly secured funding partner, OnCentive will qualify, calculate, file, and fund clients’ COVID-19 Employee Retention Credits within weeks, forgoing the typical eight-to-nine-month turnaround IRS times.

“We constantly strive to generate new profitability solutions for our clients and partners,” saidShannon Scott, OnCentive’s CEO. “This credit was passed to assist the recovery of small businesses and unfortunately, the delays in processing the payments have stifled some of that recovery. Reducing payment waiting from months to weeks for our clients will be a game changer.”

Originally established by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the ERC assists businesses struggling from the pandemic with a refundable tax credit of up to $26,000 per W-2 employee for 2020 & 2021. Businesses of various sizes and industries can take advantage of this opportunity, but delays caused by various factors led to an unprecedented amount of unprocessed tax returns causing employers to experience delays of 8 months to almost a year in receiving their refunds.

If your business has not claimed the ERC or has been told that you do not meet the requirements, contact OnCentive for a risk-free assessment. The Qualifications Team at OnCentive goes beyond the surface-level metrics and digs into the impact the pandemic had on your business's processes, supply chain, and inner workings to determine & calculate eligibility for ERC and other lucrative tax credits.

“If you haven’t already looked into the ERC for your business, now is the time,” stated Scott. “Many organizations are still feeling impacts from the pandemic and have struggled to recover. Through our new funding partnership, companies can now quickly capitalize on the ERC, without having to play the IRS waiting game, and put those much-needed funds back into their business.”

About OnCentive

Leveraging their leaderships’ 100 years of combined credit expertise and their state-of-the-art custom technology, OnCentive helps businesses maximize government incentives and tax credits. OnCentive has helped their clients capture over $2 billion in government incentives & recovery programs.

OnCentive Appoints Andrew Ryan as Chief Technology Officer

Tue, 02 Aug 2022 19:40:18 GMT

Birmingham’s Fastest Growing Financial Tech Startup Adds To Growing Leadership Team

OnCentive , the nation’s leading profitability and compliance consulting firm, is pleased to announce the appointment of Andrew Ryan as Chief Technology Officer. Ryan joins OnCentive’s Senior Leadership Team, reporting directly to OnCentive’s Chief Executive Officer, Shannon Scott.

Ryan brings a wealth of experience assisting Fortune 500 companies, obtaining market leadership through emerging technologies, data-driven insights, creating high-impact business processes, and performing digital transformations.

“We are thrilled Andrew is joining OnCentive at such a pivotal phase of our growth story,” said Shannon Scott, CEO of OnCentive. “Under his leadership, OnCentive will accelerate its development of industry-leading profitability and compliance tools and solidify our position as the nation’s leading HR technology firm.”

At OnCentive, Ryan is responsible for setting the long-term strategic technology direction, overseeing the company’s growing development team, and spearheading new product development. The growing Birmingham consulting firm recently launched a state-of-the-art Profitability Platform and acquired the leading Affordable Care Act compliance software, SyncStream Solutions , in February.

“I believe my extensive experience throughout the software development life cycle as an Architect, Engineer, Product Manager, Services and Customer Success Executive, and many other roles gives me a unique perspective to support and grow our products and organization,” said Andrew Ryan, OnCentive Chief Technology Officer. “I am excited to lead our development teams and build bleeding-edge technologies to help our clients maximize compliance and profitability.”

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OnCentive Raises $100,000 for Veteran Nonprofit, Hire Heroes USA at Successful Birmingham Fundraiser

Thu, 28 Jul 2022 19:44:17 GMT

Financial Tech Startup Secures Meaningful Donations to Help Employ Veterans and Military Spouses

FOR IMMEDIATE RELEASE

July 28, 2022 (Birmingham, AL) - Last week on Thursday, July 21, OnCentive raised $100,000 at their first annual Salute to Our Heroes charity fundraiser, benefiting veteran nonprofit, Hire Heroes USA . Despite a torrential downpour, veterans, business leaders, political figures, and the local startup community all came out to support the meaningful cause.

The Birmingham financial technology startup raised funds through event ticket sales, sponsorships, donations, and a silent auction. Together through generous supporters and a considerable donation from OnCentive, Shannon Scott, OnCentive & SyncStream CEO, was able to present Hire Heroes USA representatives Andrew Workman, Hire Heroes USA Corporate Partnerships Operations Manager, and Amy Coombs, Hire Heroes USA Corporate Account Manager, with a $100,000 check at the end of the night.

“We are so incredibly grateful to OnCentive for putting this event on and championing our mission. This check will help us continue to make sure we can serve every veteran and military spouse that needs us,” Nadine Bullock-Pottinga, Hire Heroes USA Chief Development Officer stated to Scott in response to the donation. “Hundreds of veterans and military spouses will benefit from this gift. We look forward to doing more together in the future.”

“I am beyond thrilled that we were able to more than double our fundraising goal and present Hire Heroes USA with $100,000 to further the important work securing meaningful employment for our nation’s heroes,” stated Scott. “OnCentive has committed to making Salute to Our Heroes an annual event and will work with Hire Heroes USA throughout the year to support empowering veterans in Birmingham and throughout the country.”

Through the support generated from the event, Hire Heroes USA will be able to expand and extend free career services such as personalized one-on-one coaching resume services, mentoring, workshops, a job board, career fairs, and more to veterans and military spouses. In 2021, Hire Heroes USA helped 12,594 veterans and military spouses secure meaningful employment, with an average salary of $62,680.

About OnCentive

OnCentive is the nation’s leading profitability and compliance consulting firm. Leveraging their leaderships’ 100 years of combined credit expertise and their state-of-the-art custom technology, OnCentive helps businesses maximize government incentives and tax credits. OnCentive has helped their clients capture over $2 billion in government incentives & recovery programs, like the Covid-19 Employee Retention Credits , as well as other federal and state incentive credits like the Work Opportunity Tax Credit , Research and Development Tax Credit , Disaster Employee Retention Credit , and many others.

About Hire Heroes USA

Hire Heroes USA empowers US military members, veterans and spouses to succeed in the civilian workforce. Hire Heroes USA prioritizes transparency, earning a 4-star rating from Charity Navigator and the GuideStar Platinum Seal. Funded primarily through public donations and private grants, Hire Heroes USA provides its services at no cost to its clients. For more information, visit hireheroesusa.org .

Hire Heroes USA representatives Andrew Workman, Hire Heroes USA Corporate Partnerships Operations Manager, and Amy Coombs, Hire Heroes USA Corporate Account Manager with the $100,000 donation check.

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Salute to Our Heroes Event Coordinators Vanessa Tyndall & Jess Spivey with Shannon Scott, OnCentive & SyncStream CEO, and Hire Heroes USA Representatives Amy Coombs & Andrew Workman

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A special thanks to our sponsors who made this event possible!

OnCentive Launches State-of-the-Art Profitability Platform for Processing Tax Credits & Hiring Incentives

Thu, 14 Jul 2022 19:48:40 GMT

For Immediate Release: Birmingham, Alabama

OnCentive, the nation’s leading tax credit consultancy, announces the launch of an industry-leading Profitability Platform for identifying, calculating, and processing tax credit, recovery programs, and hiring incentives. The Profitability Platform launches with hundreds of payroll provider integrations, multi-level users and reporting, and streamlined submissions processing.

With releases planned to add additional Federal and State Credits in the coming months, OnCentive’s profitability software launches with the ability to capture the Work Opportunity Tax Credit (WOTC) . WOTC is a federal incentive program that encourages employers to hire employees from targeted groups who historically faced employment barriers, like the long-term unemployed, veterans, felons, or those who receive SNAP or welfare benefits.

“There has always been a common theme in the WOTC consulting world,” stated Shannon Scott, OnCentive CEO. “The lack of automation has not only led to less-than-ideal compliance and credit yield but has also kept WOTC credits very much impossible for smaller employers to take advantage of. This software solution allows us to service clients of all sizes and complexities. I have never seen a tool this exciting in 20 years of leading companies in this industry. Easy setup, easy processing, and easy integrations.”

With just a few clicks, OnCentive clients can integrate WOTC into their hiring processes, connect to their payroll, track hires through the certification process and across multiple locations, and build custom reporting within the easy-to-use platform. Additionally, OnCentive’s software makes filing simple and efficient by automatically generating accurate end-of-year IRS forms (IRS Form 5884) for clients to provide to their accountant, removing the need to compile on their own or pay their accountant to do so.

Additional benefits for OnCentive clients:

Simple Signup : Connect payroll, add locations, and hiring managers.
Clear Tracking : View new hires’ progress in the WOTC certification process, and how much credit they qualify for at any time.
Increased WOTC Compliance : View incomplete surveys and send applicant alerts within the platform to increase WOTC compliance. ‍
Payroll Integrations : Integration with 150+ payroll providers. Connect payroll one time and never worry about sending it in again. ‍
Custom Reporting : Schedule reports on a weekly or monthly basis to be sent to anyone in their organization. ‍
Process Flexibility : Add our WOTC survey to any Applicant Tracking System or Onboarding system/process. ‍
Complete Applicant Records : Never lose valuable WOTC applicant information again! Applicants now have the “Save and Continue Later” feature. ‍
Mobile Friendly : The Employee Survey is fully mobile friendly and new hires can receive text reminders to fill out the applications.

In addition to providing the newest technology with increased visibility and reporting, OnCentive clients benefit from the consultancy’s full-service WOTC team which will continue to handle all applicant outreach, credit certification to the state office, and document management. The credit consultancy continues to expand its WOTC Operations team, which now boasts over 100 combined years of WOTC processing experience.

About OnCentive :

OnCentive is the nation’s leading profitability consulting firm. Leveraging their leadership's 100 years of combined credit expertise and their state-of-the-art custom technology, OnCentive captured $2 billion in government incentives for clients, with $0 returned to the IRS.

Media Contact :
Lindsay Morton
press@oncentive.com

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OnCentive Names Hunter West as Executive Vice President of Credit & Compliance Sales

Fri, 08 Jul 2022 19:54:11 GMT

OnCentive , a leader in the tax credit industry, and SyncStream , the nation’s premier ACA compliance solution, are pleased to welcome Hunter West as the Executive Vice President of Sales. In his new role, West will be responsible for leading sales activities across both organizations and ensuring customer success to achieve top and bottom-line growth goals.
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West brings twenty-four years of sales leadership experience in HR technology industries, with specific expertise in unemployment claims, Affordable Care Act compliance, benefits administration, and payroll-related technology solutions. Prior to joining OnCentive and SyncStream, Hunter held sales leadership roles at ADP, Thomas and Company, Certree and Businessolver.

“While we certainly recruited Hunter because of his extensive knowledge base in a wide array of HR technologies and solutions, it is his tireless focus on customer education, commitment to ensuring customers receive the best solution for their needs, and empowering leadership style that truly makes him an outstanding asset to the organization,” said Shannon Scott, CEO of OnCentive & SyncStream.

Currently residing in Nashville, Tennessee with his wife and three children, West is excited to bring his many years of experience to OnCentive companies.

“OnCentive represents an incredible opportunity for both fast growth and an emerging market need where SaaS meets expertise,” stated West. “The role is a perfect fit for my experience leading high-producing sales teams, and year-over-year revenue growth.”

West embodies OnCentive’s core value of Impact, serving on the Board of Directors of the Boys and Girls Clubs of Middle Tennessee, as well as the President of the Miller Harris Foundation, a not-for-profit that provides education and assistance to families with asthmatic children. In his free time, he coaches his children’s basketball and baseball teams and cheers on his hometown teams, the Predators & Titans.

SHRM22 – New Equality and Diversity Initiatives That Can Affect Your Company’s Compliance

Tue, 28 Jun 2022 21:31:33 GMT

Every year, over 10,000 Human Resources professionals from all over the world flock to the annual Society of Human Resource Management’s (SHRM) Annual Conference and Expo, and the theme for this year was Cause the Effect. There were over 300 sessions that focused on ways for human resource professionals to improve their workplace with new innovative ideas, empowerment, and compliance. I happened to be one of these attendees and was able to network with hundreds of human resource professionals and attended sessions that were both beneficial to my education, and for clients of both SyncStream Solutions and OnCentive.

Many are still feeling the effects of the last two years of COVID, and numerous employers are facing a similar issue: employment retention. So, employers are having to look at new ways to keep their current employees and attract new talent with rich benefits programs that are cost efficient and ACA complaint. However, employers must be aware of new pitfalls when looking for new employees. They must make sure that they are being inclusive to everyone and even some Applicant Tracking Systems (ATS) aren’t currently compliant for what is coming.

Currently, if you are a federal contractor, but not limited to Public and Private businesses, you will have to be wary as to how you write your open position job postings because the Office of Federal Contract Compliance (OFCCP) and the Equal Employment Opportunity (EEOC) will be closely watching them to ensure that you are treating everyone fairly and respectfully. They want everyone to have equal access to opportunities and resources, which means all barriers and bias will need to be removed from the workplace.

Employers must provide access to advancement opportunities and resources to all employees. This new collaborative effort with the OFCCP and the EEOC will be called “HIRE Initiative.” Its main goal is to create greater access to quality jobs for underrepresented communities.

Here are some policies/practices that may involve systematic discrimination:

Criminal background checks that automatically reject any applicants with a positive background
Word-of-Mouth recruitment practices
Steering applicants to certain jobs based on race or gender
Customer preferences
Big Data using algorithms to sort applications
Historically segregated occupations or industries
Artificial Intelligence (AI)

To learn more about the HIRE Initiative, please visit HIRE Initiative |U.S. Department of Labor (dol.gov) .

With this new initiative also comes company audits of their practices from the OFCCP. The OFCCP has been very active in 2022 by launching a Contractor Portal with contractors needing to certify compliance by June 30th,2022. They have also issued the Pay Equity Audit, Effective Compliance Evaluations and Enforcement, and announced modifications to the Nondiscrimination Obligations of Federal Contractors: Procedures to Resolve Potential Employment Discrimination in March 2022.

Most federal contractors are familiar with their regulatory compliance obligations which includes evaluation of their compensation systems to determine if there are gender, race, or ethnicity-based disparities. The Pay Equity Audit (Directive 2022-01) provides guidance on how the OFCCP will evaluate compliance with the applicable regulations and laws that are currently in place. The Effective Compliance Evaluations & Enforcement (DIR 2022-02) provides guidance on how the OFCCP will evaluate policies and expectations for contractors.

In order to strengthen the effectiveness of its compliance evaluations and promote contractor compliance, the OFCCP will do the following:

Conduct comprehensive compliance evaluations and reduce delay by promoting the timely exchange of information.
Promote a proactive approach to compliance where federal contractors are required to actively self-audit employment systems to identify and resolve problems in their employment practices.
Coordinate multi-establishment compliance review including evaluations of common policies and patterns when an employer has multiple establishments scheduled for review.
Promote regular, open, and transparent communication by all parties during the compliance evaluation to ensure contractors understand the nature of any concerns identified and to facilitate a prompt resolution of violations and completion of reviews.

In conclusion, there are a lot of new initiatives occurring for federal contractors, but don’t assume that these changes won’t affect you. The EEOC is expecting to have some administrative changes occur over the summer and some of these rules may be applied to their compliance reporting. So, stay tuned and be proactive in evaluating your information from job postings, pay disparities, and providing equal opportunities for potential new hires and existing employees.

SyncStream Solutions and OnCentive will keep you updated on any potential changes that may occur to EEOC compliance reporting due to these new initiatives.

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Lasenda Barrois

Partner Manager

Join us for Salute To Our Heroes on July 21

Tue, 21 Jun 2022 15:41:18 GMT

OnCentive, Birmingham’s fastest-growing financial technology startup will be hosting the first-annual, Salute To Our Heroes fundraiser, on July 21, 2022, from 6-11 pm benefiting veteran nonprofit, Hire Heroes USA.

Held at the historic downtown venue, The Theodore, the first-annual fundraiser will include dinner, drinks, live music performed by the Emerald Empire Band, and a silent auction with all proceeds benefiting Hire Heroes USA.

Doors open at 6 pm with a social hour allowing guests time to sip signature cocktails and peruse the many auction items on display. Throughout the night, guests will hear from local veterans who have benefited from Hire Heroes USA's free career services as well as OnCentive’s CEO, Shannon Scott. The night will commence with a silent auction, where guests can bid on numerous items such as guitars, one of kind of paintings, and sports memorabilia.

Over 300 people are expected to attend and the event welcomes anyone from the public to attend. Tickets are $100 and can be purchased on OnCentive’s website .

"Hire Heroes USA is excited to partner with OnCentive to not only empower more transitioning service members and veterans through its donation pledge but also to expand the resources we provide our partnered employers through education," said Elizabeth Reyes, Director of Corporate Partnerships at Hire Heroes USA. "We are grateful for their support and partnership, and we look forward to making a meaningful impact together for military families."

Sponsorship opportunities and silent auction donations are still available. Contact press@oncentive.com for more information.

About OnCentive:

OnCentive is a national consulting firm that helps businesses maximize government incentives and tax credits to increase their profitability. Leveraging their leadership's 100 years of combined credit expertise and their state-of-the-art custom technology, OnCentive captured $2 billion in government incentives for clients, with $0 returned to the IRS.

About Hire Heroes USA:‍

Hire Heroes USA empowers U.S. military members, veterans and spouses to succeed in the civilian workforce. Hire Heroes USA prioritizes transparency, earning a four-star rating from Charity Navigator and the Guide Star Platinum Seal. Funded primarily through public donations and private grants, Hire Heroes USA provides its services at no cost to its clients.In 2021, Hire Heroes USA helped 12,594 veterans and military spouses secure meaningful employment, with an average salary of $62,680.

Media Contact:

Lindsay Morton

Chief Growth Officer, OnCentive

press@oncentive.com

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The Importance of Choosing an ERC Consultant with Integrity

Fri, 27 May 2022 21:22:16 GMT

The tax credit industry made headlines this week due to a large consultancy’s alleged unscrupulous billing practices and toxic work culture.

While not surprised, OnCentive is enraged to learn about deserving businesses that were swindled out of a majority of government aid by false sales promises, confusing contracts, mismanaged files, and outrageous fees.

No matter what a client agrees to in a contract, it is immoral for the majority of the relief a business deserves to be eaten by fees.

To aid our nation's economic recovery from the COVID-19 pandemic, Congress passed the CARES Act, which included the Employee Retention Tax Credit (ERC), to assist the vast majority of small businesses that struggled to survive in the rapidly changing conditions. Functioning similarly to other disaster credits , the Employee Retention Tax Credit rewards business owners who went to heroic lengths to keep their employees on payroll, maintain health coverage, and offer flexible working environments for their teams during the pandemic.

This week’s news underscores the importance of properly vetting the company you chose to capture and process your Employee Retention Tax Credit.

When evaluating an ERC company, here are important red flags to look out for:

‍ Hourly rates in addition to contingency fees : Under no circumstance should a client be charged for communication as this is an expected and needed part of the qualification process.
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Requesting payment to evaluate your eligibility : While you will need to provide company documents, information, and personnel time to assist your ERC processor with determining your business’ ERC eligibility, you should not have to pay for this service.
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Requiring a portion of a “success fee” before filing your credit : Success is achieved at the finish line, and a PDF explaining your calculation is not the ERC finish line. A true success fee is collected at the time your company has received payment of the successfully claimed credit.‍
Companies without a history in tax credits : It’s important to evaluate the credit expertise your provider offers. Without a track record of success, how confident can you be with a company’s ability to maximize your credit while keeping you in compliance?
ERC-Only Pop-Up Shops : The CARES Act created a lot of pop-up ERC consultancy shops. But how is a solely ERC-focused company going to survive post-ERC? The truth is they won't survive and they don’t intend to. These companies will not be around to provide support in the event your organization needs backup materials or future questions.
Providers that don’t offer clients protection : The pandemic caused enough sleepless nights for business owners. You should not lose any additional sleep over whether or not your ERC company has your company’s best interests at heart.
Refusing to file credit on clients’ behalf : If an ERC provider believes in their findings, why won’t they put their name on it?
Inability to provide references or case studies : A qualified partner with experience in ERC should have no problem providing you with references and case studies from similar industries.

At OnCentive, we believe that businesses deserve to receive the maximum credit owed under the law without assuming any financial risk.

Established by two of the nation’s premier tax credits experts , OnCentive’s foundational corporate value is Integrity. The integrity of our work and process is paramount to all other aspects of our business. Our clients and partners trust us to capture the relief they are owed and we do not take that trust for granted.

Integrity at OnCentive means:

‍OnCentive clients assume no financial risk and are evaluated for credits for no upfront cost. If we don't find you credits, you don't owe us a dime.‍

OnCentive operates SOLELY on 100% success fees. No hidden fees . OnCentive operates on clear billing practices & easy to understand contracts.

OnCentive files for and protects clients with 100% audit protection . In the extremely unlikely event that a credit is contested or overturned, OnCentive will defend our work and will fully refund any credits that are disallowed.

OnCentive increases your cashflow; you don’t pay OnCentive until the IRS pays you . IRS wait times are unpredictable. As your profitability partner, we know how important cash flow is to your business. We wait alongside our clients for ERC payments.

OnCentive provides a comprehensive report explaining the credit your company received, the calculations for what was determined, and the proof for the money you get back . We provide the documentation to prove your eligibility, qualification, and credit calculation.

OnCentive provides clients with the expertise needed to navigate clients to a risk-free credit . Our leadership has over 100 years of combined tax experience.

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OnCentive has a proven track record of success . With $2 billion in incentives captured and $0 returned to the IRS, you are in expert hands with OnCentive.

Recognizing OnCentive's Heroes: Meet Sara Morgan

Tue, 24 May 2022 21:54:55 GMT

OnCentive is incredibly grateful for the military service personnel, and their families, who serve and protect our nation. The expertise and skillset that veterans bring is an invaluable asset to all employers, including OnCentive.

OnCentive is proud to employ veterans and active-duty service members. For Military Appreciation Month , we wanted to introduce you to the heroes who served our country and now help OnCentive customers on their journey to increase profitability.

Meet Sara Morgan:

Sara has been serving for over 12 years as an Information Technology Specialist in the Army Reserves. At OnCentive, Sara works as an Incentive Calculations Specialist. We asked Sara to share some of her experience in the military:

‍What skills did you learn in the military that you use in your career today?

To work as a team, work more efficiently, and have a better attention to detail.

How has the transition from the military to civilian life been for you?

After any training it takes a few days to get out of the military mindset and back toa more relaxed and balanced mindset. Over the years, this transitional period has helped me build a strong foundation of resiliency and flexibility.

How do you think your time in the military has affected you?

The Army has helped with my personal growth, having a deeper understanding of respect, and to manage stress. Honestly, it is hard to put into words how much the military has affected me.

Did you make any connections/ friendships with anyone that you still keep in contact with?

Absolutely! I have met some of the best people throughout my time serving. The people I have met have become a second family to me.

Is there anything you wish civilians understood about the military? Any misconceptions that civilians have about the military?

Not every training is physical. Many training events are in a classroom environment. You don’t salute everyone! Saluting is reserved for the officer ranks in an outdoor setting. There are a few exceptions for saluting indoors. Ex: A promotion formation that is being held indoors; the person being promoted must salute the officer promoting them.

What do you think about OnCentive’s partnership with Hire Heroes USA?

I think it is amazing! Many veterans struggle adjusting to civilian life. Going from a very structured life to having the ability to make all their own life decisions and have control over where they work can be very intimidating, especially if the veteran has served from a young age. Hire Heroes USA makes the transition a positive one!

Recognizing OnCentive’s Heroes: Meet Jess Spivey

Tue, 24 May 2022 20:17:59 GMT

Meet Jess Spivey:

Jess served as a Specialist in the Army National Guard for five years. At OnCentive, Jess works as the Director of Payroll/HR, Executive Assistant to the CEO and Officer Manager. We asked Jess to share some of her experience in the military:

What skills did you learn in the military that you use in your career today?

Communication, Teamwork, Conflict Resolution, Integrity, Organization, Dedication

How has the transition from the military to civilian life been for you?

It was a little hard coming back from basic & AIT training and having to readjust to being home. I still wake up early every morning and eat my meals fast like my Drill Sgt is screaming at my neck.

How do you think your time in the military affected you?

It helped me grow as a person. It taught me to always try my hardest even if that means failing on the first try. It also taught me how to have a respectable work ethic in my civilian work career.

Is there anything you wish civilians understood about the military? Any misconceptions that civilians have about the military?

It is a lot different from the civilian world. Basic & AIT alone was a lot harder when I went through compared to how it is nowadays. It takes a lot of strength to get through the training programs that the military makes you complete.

What do you think about OnCentive’s partnership with Hire Heroes USA ?

I love that the company I work for is giving back to such an honorable organization that helps current military members & veterans with the help that they deserve.

Senate Votes Today on COVID Relief Funds for Restaurants and Small Businesses

Thu, 19 May 2022 22:00:57 GMT

Back in April, Senator Ben Cardin (D-MD) and Senator Roger Wicker (R-MS) introduced a bi-partisan bill, the Small Business COVID Relief Act of 2022 (S. 4008), to provide COVID relief for restaurants and other “hard hit” industries. The $48B bill meant to backfill expired programs such as the Restaurant Revitalization Fund (RRF) will take the Senate floor today for a vote.

If passed, $40B would be used to replenish the Restaurant Revitalization Fund and $8B would be used to help several small business groups that are in financial destress. These groups include gyms, minor league sports team, border businesses, live venue service providers, exclave businesses, and providers of transportation services.

Originally established by the American Rescue Plan Act, the Restaurant Revitalization Fund provided funding to help restaurants and other eligible businesses impacted by COVID-19. Unfortunately, the $28.6 billion set aside for this program quickly ran out with only one-third of applied businesses receiving funding.

The Small Business COVID Relief Act of 2022 would provide grants to the other two-thirds of restaurants and other eligible businesses that originally didn’t receive RRF and are in dire need of funds to avoid collapse. With organizations operating on lower margins, rising wages and borrowing costs, tightening credit, and continuing inflation, businesses are in need of this immediate assistance.

Sixty votes are needed to open the floor to debate this bill. If the bill fails to pass today, Majority Leader Schumer can bring S.4008 to the floor again under Senate rules.

Businesses and organizations are advocating for the bill’s passage as the restaurant industry continues to recover from the impacts of COVID. The National Restaurant Association is one organization advocating for the replenishment of RRF. A survey conducted by the National Restaurant Association indicated that 900,000jobs were saved with the first round of RRF funding and replenishment of RRF is forecasted to save 1.6M jobs.

OnCentive is closely tracking legislation and will provide updates when available.

IRS Seeks to Remedy Delays in Employee Retention Credit Processing

Mon, 16 May 2022 20:15:19 GMT

While many employers were relieved when the Employee Retention Credit became available to provide assistance from pandemic impacts, those same employers are now feeling frustrated due to the Internal Revenue Service’s lack of speed to process these credits.

The Employee Retention Credit (ERC) was originally established by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) on March 27, 2020 to assist businesses struggling due to the Covid-19 pandemic. Since its enactment, the ERC has been extended and expanded through subsequent legislation and provides employers with a refundable tax credit of up to $26,000 per employee for 2020 & 2021.

Businesses of various sizes and industries have been able to take advantage of this opportunity, but many are still waiting to receive their funds. New tax laws, impacts of the pandemic, and various other factors led to the IRS’s unprecedented amount of unprocessed tax returns. Unfortunately, this has caused many employers to experience delays of 6 months to almost a year in receiving their refunds.

However, the IRS recently announced that they would be hiring 10,000 new employees between now and September 2023 in order to eliminate the backlog in tax credit filings. Other improvements to decrease wait times include investments in technology, tools, and self-service portals.

The IRS also addressed the backlog in processing amended returns by taking into consideration the additional income tax owed due to retroactively claiming the ERC. Since many employers have not yet received their refund payment, they may be eligible for penalty relief for failing to pay their taxes if they can show reasonable cause and not willful neglect for failure to pay.

OnCentive is closely monitoring IRS’s progress and will continue to provide updates. Despite the IRS delay, OnCentive works on a 100% success-based program , meaning we do not receive compensation for work we have completed on your behalf until you do.

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Lindsay Morton

Chief Growth Officer

OnCentive Partners with Hire Heroes USA, Commits to Annual Giving Initiative

Tue, 03 May 2022 15:51:41 GMT

OnCentive is proud to announce our new partnership with veteran nonprofit Hire Heroes USA.

Hire Heroes USA provides free career services to service members, veterans and military spouses who are seeking jobs in the civilian workforce. The organization provides personalized one-on-one coaching resume services, mentoring, workshops, a job board, career fairs, and more. In 2021, Hire Heroes USA helped 12,594 veterans and military spouses secure meaningful employment, with an average salary of $62,680.

When OnCentive launched its rebranding in December 2021 , we committed to corporate giving initiatives including an ongoing donation equal to 1% of annual profits generated from OnCentive clients claiming the Work Opportunity Tax Credi t, a government incentive available to employers who hire from targeted groups, including veterans. After an exhaustive search, OnCentive chose Hire Heroes USA because of the organization’s impressive record of accomplishment, meaningful services, and the shared belief that veterans' skills and knowledge are just as valuable in the workforce as they are on the battlefield.

“When we relaunched as OnCentive, we revisited the core of our company culture and felt it was vital that we live and work every day by our corporate values of Integrity, Enthusiasm, and Impact,” said Shannon Scott, OnCentive CEO & Co-Founder. “A large part of integrating community impact into the work we already do was committing 1% of our WOTC profits to a veteran's organization. After evaluating the services and work of many nonprofits, we chose Hire Heroes USA because the impact of their work not only benefits their clients, it empowers their families, community, and the employers that gain from their unique skillset.”

OnCentive is committed to partnering with Hire Heroes USA to educate employers on the positive impact hiring veterans has on the individuals and the organizations that employ them. One of the many benefits of hiring a veteran is the ability for the employer to receive a tax credit of up to $9,600 through the Work Opportunity Tax Credit (WOTC) . This hiring incentive program was established by the federal government to incentivize employers to hire from targeted groups who have historically faced barriers to entering the workforce. There are several WOTC categories for veterans that a business can claim. OnCentive helps companies leverage this program by screening new hires and processing the tax credits, increasing their profitability and minimizing their workload.

"Hire Heroes USA is excited to partner with OnCentive to not only empower more transitioning service members and veterans through its donation pledge, but also to expand the resources we provide our partnered employers through education,” said Elizabeth Reyes, Director of Corporate Partnerships at Hire Heroes USA. “We are grateful for their support and partnership, and we look forward to making a meaningful impact together for military families."

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About Hire Heroes USA‍

SyncStream Announces Integrated Work Opportunity Tax Credit Service, Powered by OnCentive

Wed, 27 Apr 2022 15:18:43 GMT

ACA reporting and compliance leader SyncStream Solutions LLC is excited to announce the launch of their integrated Work Opportunity Tax Credit service, powered by their new tax credit parent company, OnCentive.

The Work Opportunity Tax Credit (WOTC) is a federal hiring incentive available to employers, rewarding them for every new hire who falls within one of several eligibility groups . Depending on the qualifications, companies may be eligible to receive between $1,200 to $9,600 per qualified new hire.

The newly launched service will allow OnCentive to screen SyncStream clients’ new employees for WOTC eligibility and manage proper documentation, filing, and certification. OnCentive’s technology integrates directly with State Workforce Agencies, offering higher compliance and faster turnaround time for clients’ credits getting certified.

“Most businesses are unaware of how lucrative capturing the Work Opportunity Tax Credit can be. On average, 30% of new hires fall within one of the Work Opportunity Tax Credit’s targeted groups,” said Shannon Scott, OnCentive & SyncStream CEO. “However, that percentage is much higher in high-turnover industries such as hospitality, food service, construction, manufacturing, staffing, and other blue-collar trades.”

Unlike other tax credits and recovery programs, capturing the Work Opportunity Tax Credit is often a function of a company’s HR department, rather than their accounting department. In order to leverage these credits, a business needs to apply within the first 28 days of a new employee’s start date and receive a certification verifying that the new hire is a member of a targeted group before they can claim the tax credit. After the required certification is secured, taxable employers claim WOTC as a general business credit against their income taxes, and qualified tax-exempt employers claim WOTC against their payroll taxes Social Security tax liability.

By signing up for WOTC services powered by OnCentive, SyncStream clients can capture these underutilized credits and increase their business’ profitability without increasing their team’s workload. SyncStream clients assume no upfront financial risk by signing up for WOTC services due to OnCentive’s 100% success-based fee structure.

“Operating solely on success fees means we are more committed to ensuring the highest compliance to get you the most certified credits possible,” said Lindsay Morton, OnCentive’s Chief Growth Officer. “If we don’t provide you with tax credits, you don’t owe us anything!”

ABOUT SYNCSTREAM:

SyncStream’s tracking solution monitors the ACA status of part-time and seasonal employees in real-time to determine if the business qualifies for applicable large employer status, and which employees qualify for employee-sponsored coverage. The company has successfully fulfilled over 6 million employee forms and served more than 16,000 customers with a 96% customer retention for both federal and state filings.

ABOUT ONCENTIVE:

OnCentive is a consulting firm that helps businesses maximize government incentives and tax credits to increase their profitability. Leveraging their leaderships’ 100 years of combined credit expertise and their state-of-the-art custom technology, OnCentive captured $2 billion in government incentives for clients, with $0 returned to the IRS. OnCentive’s team of credit experts helps businesses affected by the COVID-19 pandemic to qualify and capture millions in Employee Retention Credits , as well as other federal and state incentive credits like the Work Opportunity Tax Credit , Research and Development Tax Credit , Disaster Employee Retention Credit , and many others.

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Which Candidates Qualify Employers for the Work Opportunity Tax Credit?

Mon, 25 Apr 2022 19:59:44 GMT

The Work Opportunity Tax Credit (WOTC) is a federal incentive program that encourages employers to hire employees from certain groups who have historically faced significant barriers to employment. The tax credits, worth up to $9,600 per new hire, can significantly impact an employers' bottom-line.

Businesses may be wondering which candidates qualify and the amount of tax credits they can receive. Below is a breakdown of eligible WOTC target groups and their credit caps:

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Veteran Target Groups

$9,600 - Veterans with a service-connected disability who have been unemployed for at least 6 months in the past year
$4,800 - Veterans with a service-connected disability and hired within 1 year of their discharge/release date
$5,600 - Veterans who have been unemployed for at least 6 months
$2,400 - Veterans receiving Supplemental Nutrition Assistance Program (SNAP) benefits
$2,400 - Veterans who have been unemployed for at least 4 weeks but less than 6 months

Non-Veteran Target Groups

$9,000 - Long-Term Family Assistance recipients who are members of a family that has received TANF benefits for at least 18 consecutive months
$2,400 - Temporary Assistance for Needy Families (TANF) recipients
$2,400 - SNAP recipients
$2,400 - Long-term unemployed
$2,400 - Supplemental Security Income recipients
$2,400 - Vocational rehabilitation referrals
$2,400 - Ex-felons
$2,400 - Designated community residents
$1,200 - Summer Youth program participants who are 16 to 17 years old, work between May 1 and September 15, and live in a designated community area

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Alabama Innovation Spotlight: OnCentive acquires tech company based in New Orleans

Tue, 12 Apr 2022 19:56:20 GMT

By Tyler Patchen - Health and Technology Reporter

April 08, 2022, 02:34pm CDT

A Birmingham tech company has secured an acquisition.

OnCentive, a tech company that guides companies to find tax credits and business incentives, has acquired SyncStream Solutions LLC, a New Orleans-based ACA compliance and reporting platform. The financial details of the deal were not disclosed.

Continue Reading on Alabama Innovation

OnCentive Acquires ACA Compliance Technology, SyncStream Solutions, Inc.

Mon, 11 Apr 2022 21:44:18 GMT

‍ OnCentive , a leader in tax credits and business incentives, today announced that it has completed the acquisition of SyncStream Solutions, LLC, the first-to-market comprehensive ACA compliance and reporting technology platform.

"We are thrilled to announce our acquisition of SyncStream Solutions and welcome their clients, partners, and employees to OnCentive," said OnCentive CEO & Co-Founder Shannon Scott. "Adding SyncStream's robust ACA compliance toolset into OnCentive's expanding portfolio allows us to further increase clients' profitability by increasing their government compliance and mitigating their financial risk."

The SyncStream employees will remain based out of New Orleans, LA, and will have the expanded resources of OnCentive’s Birmingham, AL headquarters and nationally-located sales team. Scott will assume the role of CEO of SyncStream, shifting SyncStream’s interim CEO, Kevin Anhalt, to Chief Revenue Officer to grow strategic partnerships.

“Today's announcement brings to market a powerful combination of technology and expertise to enable organizations of all sizes to effectively seize opportunities and remove barriers to business growth,” said SyncStream’s Kevin Anhalt. “I've personally known OnCentive’s CEO, Shannon Scott, for over 12 years, and have long admired the skills and knowledge he brings to building dynamic, successful companies, and the inclusive, support-focused cultures he promotes. Team SyncStream is excited about working alongside Team OnCentive, to provide our clients with continuity as well as expanded support and expertise, which will get them - and us - to the next level.”

Both companies share the same dedication to compliance and risk mitigation and delivering simplified solutions to an employer's complex problems. The acquisition gives SyncStream’s 4,000 clients access to OnCentive’s state-of-the-art tax credit toolset and 100 years of combined tax credit expertise. The joint capabilities of the two organizations create a technology offering that provides clients the ability to navigate government compliance and capture government hiring incentives with minimal effort.

“OnCentive’s mission is to democratize business incentives by making it easy for business owners of any size to leverage complex government programs that can quickly increase their profitability,” said Lindsay Morton, Chief Growth Officer of OnCentive. “Using the same employee data, we can now help business owners identify and capture lucrative tax credits, track their ACA compliance, and increase their company’s profitability, all without complicated paper processes and time-consuming manual labor.”

Legislative Update: Restaurants & Other Industries May Receive Additional COVID Relief Through Proposed Legislation

Tue, 05 Apr 2022 21:48:36 GMT

Tuesday, April 5, 2022

There is a $55 billion relief package for restaurants, gyms, and other industries that is gathering steam in the House. The package would provide small-business pandemic aid with $42 billion allocated to restaurant relief and $13 billion for other “hard hit” industries. It is meant to backfill expired programs such as the Restaurant Revitalization Fund (RRF).

The Restaurant Revitalization Fund, established by the American Rescue Plan Act , provided funding to help restaurants and other eligible businesses impacted by COVID-19. Unfortunately, the $28.6 billion set aside for this program quickly ran out with only one-third of applied businesses receiving funding.

This new relief package is expected to provide grants to the other two-thirds of restaurants and other eligible businesses that originally applied for RRF. Although the bill does not reopen RRF to new applicants, it does provide an opportunity for those who were previously denied a chance to reapply.

The bill includes language that if there isn’t enough money to provide full grants to eligible businesses, funds would be reduced by an equal percentage, so all approved applicants receive funding. To receive the grant, eligible businesses must still be operating or reopen within 6 months of receiving the funding.

To ensure restaurants and other hard-hit businesses receive this much needed funding, please reach out to your House and Senate representatives with the following message:

“The House is preparing to vote on the Restaurant Relief bill. Many parts of our society, especially small businesses, were not included in past COVID relief, and with the arrival of Omicron in January and February, thousands of restaurants, gyms, and entertainment facilities who endured two years of COVID without government support, are now facing bankruptcy. We urge you to support these firms, who are struggling with conditions they did not create, by passing a one-time financial boost to keep them and their workers running.”

OnCentive is closely tracking legislation and will provide updates, when available.

Alabama Innovation Spotlight: OnCentive plans for key hiring and growth in 2022

Sun, 20 Mar 2022 20:05:45 GMT

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By Tyler Patchen - Health and Technology Reporter

March 04, 2022, 07:36am CST

A Birmingham tech company that has seen significant growth is looking to nearly double its employee count by the second quarter of 2022.

OnCentive, which was founded in 2020 during the pandemic, conducts incentive consulting for companies and corporations. Its technology integrates with hiring systems, and the company can find government incentives for hiring based on demographics or geography. It can also find general incentives for companies.

CEO Shannon Scott launched the company with a co-founder and three other employees. The company now has 30 employees and is hiring two people each week. Scott said the growth has occurred only in the last six months and can be attributed to a strong in-house sales team and new regulations coming out of the U.S. Congress.

“What’s led to this growth in the last six months is a heck of a team ... a great sales team. I can’t lie, Congress has helped. They pass a lot of bills that assist us,” Scott said. “We maintain a lot of contacts in the industry. We have a lot of partners who resell our technologies and services as well.”

Scott said their product is also sold by CPA firms and payroll companies because it generates cash for their clients.

OnCentive targets small- and medium-sized businesses, which has led to growth. The company will look to produce more enterprise technologies next year.

OnCentive recorded a total of $25 million in revenue in its first year and is trending toward $50 million for this year.

The company is in the process of finishing renovations at a new 13,000-square-foot headquarters on First Avenue North. The renovations included tearing down walls to make the office more open, as developers and those with technical skills will be dominating the space.

The company is also aiming to stay and grow in Birmingham and has plans to make larger acquisitions as well.

When the growth took over, it wasn’t Scott’s first success story. Scott has been in tech for over 20 years, starting his first company when he was 19. He sold that startup in 2018.

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Read on Alabama Innovation

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Lindsay Morton

Chief Growth Officer

OnCentive Announces Opening of New Corporate Headquarters in Downtown Birmingham, Alabama

Sat, 19 Mar 2022 20:11:41 GMT

Birmingham, AL, 16th March 2022,

‍ OnCentive, a leader in the tax credit industry, is pleased to announce the opening of a new corporate headquarters at 2127 1st Ave N in downtown Birmingham. Generating over $25 million in revenue in its first year, OnCentive chose to expand into the 13,000 sq. ft newly renovated office to accommodate the company’s expanding product lines and employee count.

“I am incredibly proud of our team’s accomplishments and the momentum we are building,” said Shannon Scott, OnCentive Co-Founder and CEO. “The opening of our downtown headquarters coincides with the next phase of OnCentive’s growth as we continue to build out new technologies to help our clients and partners increase the profitability and compliance of their businesses.”

Though technically a startup company, OnCentive’s founders are veterans in the credit industry, offering clients their leadership’s combined 100 years of experience. The company aims to pair its industry expertise with newly developed technologies to bring tax credits and business incentives to previously under-served markets.

“Birmingham is becoming a hub for tech startups, and we are proud to join this evolving landscape,” said Lindsay Morton, OnCentive Chief Growth Officer. “The new office allows us the space and culture to recruit the top-tier tech talent that our city offers.”

The company has hired over twenty employees in the last three weeks and plans on recruiting more, as well as relocating some of their remote employees.

Even with new product launches on the horizon, OnCentive plans on continuing to serve small & midsized businesses, offering their clients 100% audit protection and success-based fees. Additionally, they partner with Applicant Tracking System, Onboarding, and Payroll companies, as well as CPA and accounting firms to offer value-based solutions for both the partner and their clients.

About OnCentive:

OnCentive is a consulting firm that helps businesses maximize government incentives and tax credits to increase their profitability. Leveraging their leaderships’ 100 years of combined credit expertise and their state-of-the-art custom technology, OnCentive captured 1.5 billion in government incentives for clients, with $0 returned to the IRS. OnCentive’s team of credit experts helps businesses affected by the COVID-19 pandemic to qualify and capture millions in Employee Retention Credits , as well as other federal and state incentive credits like the Work Opportunity Tax Credit , Research and Development Tax Credit , Disaster Employee Retention Credit , and many others.

OnCentive expands into downtown office to be closer to city’s growth

Sat, 19 Mar 2022 16:05:12 GMT

What You Should Know About the R&D Tax Credit

Sat, 19 Mar 2022 15:25:48 GMT

Tax reform, also known as TCJA (Tax Cuts and Jobs Act) put a lot of new changes in place for businesses. One of the major tax benefits is the R&D tax credit which provides reliable opportunities for reducing tax liabilities to save companies hundreds of thousands of dollars.

Due to common misconceptions, however, a lot of companies are not fully benefiting from the R&D credit. Many are not understanding how it applies to their operations. If a business doesn't claim the R&D credit, it is most likely because:

They are confused about documentation
Expenditures
How the credit can be used,
Qualifying activities

If you have clarity about the R&D tax credit, it will help you learn how to identify and claim your credit.

How Do You Know if Your Business is Eligible for the R&D Tax Credit?

The eligibility for the R&D credit is a lot broader than most businesses realize. Eligibility applies not just to product development, but operations and activities, such as software development, quality enhancements, and new manufacturing processes. If you have just started your business, you might be eligible to apply for the R&D tax credit against your payroll tax for the next five years.

Ways in which your organization could qualify for the R&D tax credit:

If you have devoted resources and time to building innovative or new products
If your company has developed software, prototypes, or patents
If you have improved any existing products
If your company has hired scientists, engineers, or designers

You may be able to claim R&D credits, (this rule depends on when your tax return was filed) for the last three open tax years. If your company is showing a loss, you may be able to go back even further. Check with the tax experts at OnCentive to learn how this credit may impact your taxes this year.

What are the Business Incentives with the R&D Tax Credit?

The R&D tax credits are business incentives that reduce your company's tax liability dollar-for-dollar. There is no limitation placed on the number of your expenses, and these business incentives can be claimed every year. If you cannot use the R&D tax credit completely, or immediately, then you unused credit you qualify for can be carried forward for up to twenty years, or back one year. Check with OnCentive as each state has its own rules regarding carryovers, so you will want to learn what your state's guidelines are.

Common Misunderstandings on Why Companies Think They Do Not Quality for R&D Tax Credits

There are common misunderstandings made by companies in assuming they do not qualify for the R&D tax credit:

1. The Company is not Paying Federal Income Tax

Small businesses and start-up companies can be eligible to apply up to $250,000 a year for five years of the federal R&D credit. This credit will nullify the FICA part of their payroll taxes each year.

2. The Business is not Focused on R&D

The R&D tax credit is not just for life sciences or high-tech companies that have dedicated research departments. A lot of companies do not have R&D laboratories, but instead perform R&D in their distilleries, wineries, fields, kitchens, or production floors. If you perform any type of experimentation, you qualify for R&D.

3. Employees are not Scientists or Engineers

The companies that employ a large number of engineers and scientists stand out as candidates for the R&D tax credit. Because the R&D was created as a way to encourage experimentation and research, however, it applies regardless of who performs the activities. No matter the employee's title or job title, if there is experimentation involved, employees and even third-party contractors who engage in the improvement or projects are considered under the R&D tax credit allowance.

Any company that has resolved a technological challenge can be eligible for the R&D tax credit. If you are unsure if your company qualifies, you should contact one of the tax experts at OnCentive.

Where to Learn More About Business Incentives and Tax Credits

OnCentive has more than 100 years of combined tax experience and a risk-free model to help companies claim the business incentives and tax credits they deserve. Talk to one of our tax experts today and learn if your company qualifies for the R&D tax credit, or any other incentives out there to help your business grow.

What you need to know: Paycheck Protection Program (PPP) VS the Employee Retention Tax Credit (ERTC)

Sat, 26 Feb 2022 21:48:48 GMT

With many businesses facing economic hardship during a global pandemic, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides relief. Under this legislation, business owners were given two recovery options: the Paycheck Protection Program (PPP) or the Employee Retention Tax Credit (ERTC). Because the PPP loan can be forgiven, many businesses chose to forgo the ERTC.

The Consolidated Appropriations Act (CAA), passed in December of 2020, allows for small businesses to take advantage of both programs for 2020 and2021. This means businesses that have already claimed the PPP loan can now claim the ERTC too. The CAA also expanded the PPP for round 2 and the ERTC by increasing the credit amount paid to employers.

The Infrastructure Investment and Jobs Act, passed on November 15, 2021, ended fourth quarter eligibility for the ERTC for 2021. The ERTC can be claimed only for 2020 and Quarter 1 through Quarter 3 of 2021.

Let’s look at the PPP and ERTC and how to maximize both. It is important to note that wages used for the PPP loan cannot be used for the ERTC.

PPP :

The Paycheck Protection Program is a forgivable loan helping employers to pay employees.

The loan is calculated using 2.5 months of average monthly payroll costs.Businesses could receive up to $10 million. The CAA allowed employers to receive an additional round of PPP up to $2 million. Borrowers have up to 24 weeks to use 60% of the loan towards payroll costs. If a business can use 40% of the loan towards non-payroll costs, this helps to maximize the ERTC.

ERTC :

The Employee Retention Tax Credit is a refundable payroll tax credit claimed on an employer’s federal employment tax return.

For 2020 (specifically March 13, 2020 through December 31, 2020), an employer can receive a maximum of $5,000 per employee. This is 50% of the first$10,000 of qualifying wages paid per employee. For each quarter of 2021, an employer can receive a maximum of $7,000 per employee. This is 70% of the first$10,000 of qualifying wages paid per employee. For example, if a business qualifies for Q1 through Q3 of 2021, the employer could receive a maximum of$21,000 per employee.

Does your business qualify for ERTC?

There are two tests for qualification: gross receipts or government mandates. If your business does not meet the gross receipts criteria, we will look at government mandates.

1. Gross Receipts

a. In 2020 : Any quarter with less than 50% of gross receipts for the same quarter in 2019. Eligibility continues for each quarter in decline until gross receipts reach greater than 80% of the same quarter of2019.

b. In 2021 : Any quarter with less than 80% of gross receipts for the same quarter in 2019.

2. Government mandates in 2020 and 2021 : Any federal, state, or local mandate that partially of fully suspended business operations.

Even if your business increased its gross receipts during 2020 and 2021, you are still eligible for the credit if a government mandate partially affected your business operations.

Most businesses qualify for the Employee Retention Tax Credit. If you area business owner looking to participate in the ERTC, please sign up with OnCentive today. We encourage you to take this opportunity to reward your business for retaining employees during a global pandemic. OnCentive knows firsthand how important this credit can be to the survival of a business going through an economic recovery period. We have calculated over $120 million in ERTC credits. Our team qualifies businesses and calculates their ERTC credits every single day. We are dedicated to you every step of the way.

If you would like more information on the ERTC and how your business can participate, please call today at 256-680-9107.

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Michelle Minogue

OnCentive National Sales Manager

What Qualifies the Research and Development (R&D) Tax Credit?

Sat, 26 Feb 2022 17:10:51 GMT

As of January 3rd, 2022, the Internal Revenue Service (IRS), announced that there would additional information required for a Research and Development (R&D) tax credit. The IRS stated that there will be a transition period from January 10th, 2022 through January 9th, 2023, where taxpayers will be given a 30 to 45-day grace period to correct a refund claim, if the IRS determines a claim to be deficient of information. The new essential pieces of information are as follows:

1. A list of all the related and supportive business components to the research credit for that claim year.

2. A description of each research activity performed by each business component.

3. Identification of the individual(s) engaged with the research activities by business component, full names and titles, in a list, table, or narrative format.

4. Detailed information of the research each individual pursued to discover by business component, also in list, table, or narrative format.

5. Total amount qualified for the claim year – employee wage expenses, supply expenses, contract research expenses, etc.

A Quick Review of the R&D Tax Credit

The United States Federal Government has offered the R&D tax credit since 1981 as an incentive for companies whose main goal is to research and develop new products. Large companies and corporations have been thriving off this credit since then. However, the small startups or small businesses, either don’t know it exists, don’t believe they could qualify for it, or simply don’t understand its benefit. That where trusting and partnering with an outsourced tax credit specialist comes in to play.

Conclusion

The documentation for an R&D credit is what hurts most of the taxpayers, if they are doing it themselves. The IRS still devotes most of their resourcing to auditing, especially the R&D tax credit. The IRS states that any R&D activities must “be clearly and reasonably documented” in order to comply with qualification tests required by the IRS. The new guidance introduced in January 2022 only increases IRS scrutiny for these R&D credits, that could only help small businesses in the long run.

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Service Nation Partners with OnCentive

Tue, 08 Feb 2022 19:57:40 GMT

FOR IMMEDIATE RELEASE
Birmingham, AL 2/10/2022

OnCentive i s pleased to announce a partnership with Service Nation , the world’s largest contractor alliance in the electrical, HVAC, plumbing, and remodeling industries.

Service Nation’s 5000 member companies will have access to OnCentive’s premier business incentive expertise to help their businesses capture and qualify for lucrative tax credits like the COVID-19 Employment Retention Credit (ERC).

Passed by Congress to aid businesses struggling from the ongoing effects of the pandemic, the Employee Retention Tax Credit (ERC) is a refundable payroll tax credit that encourages businesses to keep employees on their payroll. The credit can be up to worth up to $26,000 per w-2 employee for qualified employees. OnCentive recently worked with a plumbing contractor and qualified them for over $250,000 in credits.

Service Nation chose OnCentive as their ERC partner because of their leadership’s combined 100 years of credit experience, a sole focus on credits and recovery programs, 100% client audit protection, and a business-owner-friendly fee structure. OnCentive’s core competencies are tax credits and recovery programs, and they specifically focus on serving small and mid-size businesses.

“The pandemic hit the service industry hard and it's an honor to be able to put money back in the hands of the hard-working business owners who chose to retain staff during such chaotic times. I am thrilled help Service Nation's members capture thousands in Employment Retention Credit,” said Steven Lewis, OnCentive Service Nation Liason and National Sales Manager.

With no upfront costs or fees, OnCentive helps businesses qualify and file for ERC, while also checking their qualification for other business incentives and tax credits. It is vital for business owners pursuing ERC or other credits to choose a partner with deep knowledge in all credits offered to businesses because claiming each recovery program independently without considering the impact of the other measures can lead to a significantly reduced benefit to your business.

Even if your business took multiple PPP loans, increased its profits during the pandemic, and never shut its doors due to government mandates, your business could potentially still qualify. OnCentive’s ERC experts will review your business and determine qualification for FREE.

OnCentive experts make qualifying for tax credits simple and easy for business owners. The process starts with a 15-minute introductory call with our Service Nation contact, Steven Lewis. You can reach him by email at slewis@oncentive.com or you can schedule an introductory call using this link to Steven's Calendar .

Lindsay Morton

Chief Growth Officer

Cannabis Business Can Qualify COVID-19 Employment Retention Credit

Mon, 07 Feb 2022 22:06:51 GMT

To aid the many businesses facing economic hardship caused by the global pandemic, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided relief, with two recovery programs: the Paycheck Protection Program (PPP), and the Employee Retention Tax Credit (ERC).

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Cannabis businesses were not allowed to participate in the Paycheck Protection Program. Citing IRC Section 280E, the SBA stated that cannabis businesses were disallowed from participating in PPP. IRC Section 280E denies cannabis businesses from deducting otherwise ordinary business expenses from gross income for income tax purposes. However, this doesn’t mean cannabis businesses are disqualified from all recovery programs.

Cannabis businesses can qualify for the COVID-19 Employment Retention Credit, as it is classified as a payroll tax credit, and not an income tax credit. ERC is a refundable tax credit to businesses that retained employees during the pandemic who meet certain qualifications like forced closed closures, a decline in gross receipts from prior years, and other business interruptions. The credit is worth a maximum of $26,000 per w-2 employee. ‍

Is it safe for my cannabis business to apply for ERC?

As a cannabis business, we know anything to do with taxes and federal regulation can be anxiety-inducing, to say the least. You need a partner with credit expertise within the cannabis industry: OnCentive has helped dispensary clients claim hundreds of thousands of dollars in Employment Retention Credit.

Led by the premier tax credit experts in the country, OnCentive offers clients 100% audit protection. In the unlikely event that a credit is contested, OnCentive will defend its work and fully refund any credits disallowed. Their team of tax lawyers and CPAs has over 100 years of combined tax credit experience. With over 1.5 billion in captured credits and $0 returned to the IRS, you can rest easy knowing you and your business are in good hands.

How Can My Cannabis Business apply for ERC?

OnCentive makes it simple for business owners to qualify for the Employment Retention Credit. Unlike competitors and CPAs, OnCentive has no upfront cost or fees and waits for you to receive your check from the IRS to invoice their success fees. Simply put, OnCentive doesn't get paid until you do.

Ready to begin the qualification process now? Start the process with a short 10 minute conversation with an OnCentive expert: (855) 566-0829 or schedule a call.

Research & Development Credit: What is it? Does your business qualify?

Mon, 07 Feb 2022 22:00:04 GMT

What is R&D?

The Research and Development credit, as prescribed in 26 U.S.C. § 41, is for companies that are developing new or improved business components. The impact of the R&D credit reaches far beyond the benefit to the companies who claim it. The overarching achievements of the incentive include economic growth and an increase in productivity. Furthermore, this program incentivizes companies to drive innovation within the United States while supporting U.S. competitiveness on the world stage.

The R&D credit was first introduced in 1981 by the Regan Administration. The goal was to encourage companies to invest in innovation and as a result increase the number of technical jobs in the U.S. Fast forward to 2015, the Protecting American from Tax Hikes (PATH) Act was implemented, and the credit became a permanent part of the tax code. Previously, large corporations with departments dedicated to research were the only ones able to reap the benefits of R&D. The PATH Act opened up opportunities for small to mid-sized businesses as well as start-ups. Additionally, even more, businesses have been able to benefit from their research efforts by way of the new offsets for the alternative minimum tax (AMT) and payroll taxes. Over 30 states adopted similar credits to offset the state tax liability as well. It’s important to note that any company that develops new or improved products, processes, or software has the potential to qualify for the credit regardless of whether the business component was developed successfully or not.

Put simply, the Research and Development Credit is an incentive program rewarding businesses that participate in innovative efforts in almost any industry.

Who qualifies for R & D?

Over the years, the R&D credit has expanded to encompass nearly every industry. More businesses than ever engage in qualifying activities making them eligible to claim the credit. These credits are designed to be a cakewalk for new companies looking to raise venture capital and bring new products and services to market. Qualifying activities expand to operational functions such as quality enhancements and software development.

Examples of Qualifying Activities:

● Allocate recourses to formulating an innovative product or product enhancement

● Hire scientists or engineers

● Develop a prototype, patent, or software

● Conduct testing and hypothesis on new products

● Add equipment to improve processes

● Green Initiatives

● Pay outside consultants or scientists to do any qualifying activities

● New research findings

● Develop or improve software

● Formulate, test, and apply a hypothesis

● Streamline processes in manufacturing

As you may have guessed, traditional scientific work such as developing a new medicine would be considered a qualified activity. However, R&D expands into all of the following industries:

● Apparel

● Food& Beverage

● Cosmetics

● Consumer Products

● Engineering

● Aerospace

● Telecommunication

● Software Development

● Chemical

● Medical Devices

Furthering the benefits of R&D, the credit can be filed retroactively. Companies may be able to claim R&D credits for three prior open tax years. In some circumstances, companies may be able to go back even further.Many states offer more than 3 years to retroactively claim the credit.

The 4 Part Test

1. Qualified (Permitted) Purpose: The activity must serve to improve quality, functionality, performance, reliability, of a product, software, technique, invention, formula, or process that is intended to for use of the taxpayer’s business or held for sale, lease or license.

2. Technical Uncertainty: In the initial stages of the activity there must be uncertainties in terms of the capability and appropriate design of the business component. Can and should the taxpayer develop the component?

3. Process of Experimentation: The process of experimentation serves to eliminate the uncertainty. The taxpayer should demonstrate a systematic plan involving hypothesis, data analysis, modeling, trial, and error, etc.

4. Technical Nature: The activity must depend on the fundamental principles of engineering, biology, chemistry, and computer science.

Misconceptions

The biggest misconception is that companies believe they have to achieve a revolutionary scientific breakthrough. This is not the case at all. Adding emphasis to a previous point, research activities do not even have to be successful. Company’s must simply have a documented attempt.

The second biggest misconception is that the company is not eligible because they aren’t developing any NEW. The credit is geared toward companies that develop, design, and improve processes, products, formulas, software, and techniques. The credit is calculated based on the wages of employees who perform the qualifying work as well as increases in research expenditures.

In layman’s terms, R&D does not have to be new to the industry. It must be new to the company and the activities must meet the criteria of the 4- Part Test.

What does this mean for my business?

There are multiple factors that determine the amount of the R&D tax credit that can be claimed by a business. Although this can be a time-consuming process, the amount of tax savings can make the investigation worthwhile. The R&D credit has the potential to offset income tax, alternative minimum tax, and even payroll tax. Those who haven’t taken advantage previously can retroactively file for up to 3 years. If the company doesn’t currently have taxable income the credit can be carried forward for 20years to offset future tax liability.

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It’s important to note that businesses must properly document their research efforts. To maximize the credit amount, taxpayers and businesses must evaluate and document their research activities continuously. This is crucial for establishing the amount of qualified research expense that can be allocated toward the credit. Examples of documentation include project plans, payroll data, documented chain of communication throughout the activity, the general ledger of expenses, etc. Documentation combined with credible employee testimonials establish a basis for a successful claim

What next?

The Tax Cuts and Job Act combined with the Protecting American from Tax Hikes Act have created more opportunities than ever for businesses industry-wide. Small to large companies now have the ability to minimize their tax burden through claiming the Research & Development Credit. Now is the time to examine the past, present, and future qualifying activities.

The first step toward maximizing your claim for the Research & Development Credit is to contact a professional R&D tax credit consultant.

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Rachel Moorman

VP, National Sales

What You Need to Know About the Disaster Employee Retention Credit

Thu, 03 Feb 2022 20:15:08 GMT

What is a Qualified Disaster?

A qualified disaster is when an area has been declared 'a disaster area' by a federal government agency.

What is the Employee Retention Credit?

The employee retention credits are for employers with worksite location(s) inside a qualified disaster zone. These credits are available if your business became impacted due to the disaster, but you continued to pay your employees during the qualified period following the disaster.

The amount of the credit is determined by the amount of qualified wages paid to eligible employees. The credit is forty percent of qualifying wages up to $6,000 per eligible employee. The maximum credit is $2,400 per qualifying employee.

The employee retention credit will be applied against your federal business income taxes.

What are Qualified Wages?

Qualified wages are the wages paid to an employee working during the time the disaster occurred in which your business was impacted by the disaster. The employees’ worksite location at the time of the disaster must be in an eligible disaster area and the business’s normal operations impacted by the disaster.

The incident period begins at any time on or after your business became inoperable and ends on the earliest date your business returned to significant operations. The maximum allowed qualification period is 150 days after the disaster incident end date.

Qualified wages include the wages you paid without regard to the employee performing services at a different location from their principal place of employment or performing services at their principal place of employment before significant operations begin again. Regardless of whether your business was reimbursed through your insurance, you are still considered qualified for the credit.

Qualified wages under the disaster provision do not include wages that qualify under the employee retention credits found under Section 2301 of the CARES Act.

Impact of Other Relief Provisions and Credits

If you are an eligible employer, your ability to claim employee retention credits will be impacted by other relief provisions and credit:

Employees will not be counted if you are allowed a Work Opportunity Tax Credit under Section 51 of the IRS code for the employee
Wages considered for this credit cannot be counted for the credit for paid Family and Medical Leave under Section 455 of the IRS code
If you received wages where a tax credit was applied under the Families First Coronavirus Response Act Wages on paid family and sick leave, these are also not eligible for the employee retention credit.
Wages used for the Research & Development Credit (Sec. 41)
Wages used for the Indian Employer Credit (Sec. 45A)
Wages used for Empowerment Zone Employer Credit (Sec. 1396)
Wages used for the employer wage credit for employers of active duty military (Sec. 45P)
Wages used for calculation of the credit for businesses offering FMLA policy (Sec. 45P)

If you have questions about how you qualify for employee retention credits, talk to the tax experts at ETaxBreaks.

Who to Talk to About Tax Credits for Your Business

OnCentive is committed to helping your business get back what you are owed. With over twenty years of experience in the tax incentives industry, we can maximize your credit, ensure accuracy and create additional cash flow for your company.

Your Guide to Tax Incentives for Small Businesses

Wed, 02 Feb 2022 20:11:05 GMT

Tax incentives typically mean something good, but you have to understand what they are to get the advantage. Tax incentives are different from tax deductions and as this will explain are better than deductions. Knowing the difference between incentives and deductions will help your business take better advantage of the savings.

Learning the Difference Between Tax Incentives and Tax Deductions

Before you learn about the common tax incentives, you should understand the difference between the incentives and the deductions. An example is businesses receive tax credits when they purchase energy-efficient vehicles or use green materials in their buildings. These types of actions benefit the economy, business development, environment, or have an impact on positive business purposes. The tax incentives for these are offered over a specific time period.

These incentives offer superior savings in tax terms over the tax deductions. The tax incentive gets deducted from your income before your gross income is calculated. Tax deductions are given in the next step of the tax process and reduce your net taxable income.

Understanding the difference between the tax incentive and tax deductions is the first step to taking advantage of these tax laws to benefit your business. These are some of the incentives you may qualify for or be able to take advantage of.

COVID-19 Tax Incentives

During the COVID-19 pandemic, additional tax incentives were created to help businesses through this economic crisis. The ERC or Employee Retention Credit was offered to businesses as an incentive to keep their employees on the payroll. The family and sick leave credits were available to help companies with the cost for those who had to use them.

As a business, you are able to take these credits by deferring your employer payments for Social Security taxes normally withheld from employees on Form 941. These are some of those COVID-19 tax incentives created to help businesses financially.

ERC- Employee Retention Tax Credit

The 2020 CARES Act, resulting from the COVID-19 pandemic was created by the IRS as an incentive for employers to keep their employees on the payroll and not put them on unemployment benefits. The ERC is a fully refundable tax credit per qualified employee up to $5,000. This incentive was applied to wages paid after March 12th, 2020.

In January 2021, the amount of the incentive increased to seventy percent of qualified wages and included the cost of health benefits. The cap on this incentive is set at $7,000 per employee for a quarter. The ARPA (American Rescue Plan Act) has extended this incentive through December 2021.

If your business received a PPP (Paycheck Protection Program) loan, you can still qualify for this incentive, however, not for wages paid through forgiven PPP proceeds. Your group health plan expenses can also be considered qualified wages in certain circumstances.

Tax Incentives for Sick and Family Leave

The FFCRA (2020 Families First Coronavirus Response Act) provides tax incentives to employers that make it possible for employees to receive sick and family leave. The incentives are available to mid-size or small employers with less than 500 employees who have given paid sick time to their employees who've stayed home for a family member's or their own health needs.

As an employer, if you paid these sick or family leave expenses, you can receive tax incentives for part of the cost you've provided to employees. These tax incentives are received by deferring your part of Social Security benefits on your employee's wages.

Work Opportunity Tax Credits

The Work Opportunity Tax Credit, or WOTC, is an ongoing federal income tax credit that was put in place to encourage employers to hire from certain targeted demographic groups, including:

SNAP
TANF
SSI recipients
Ex-felons
Vocational rehabilitation referrals
Individuals with a residence in several high-poverty
Low-income areas across the country
5 separate groups of military veterans.

This tax credit only requires the applicant to complete two short forms to determine their eligibility, and we take it from there! The WOTC program is federal but administered by each state’s workforce agency (SWA) which makes the final determination to certify or deny the tax credit.

Important : This tax credit only requires the applicant to complete two short forms to determine their eligibility, and we take it from there! The WOTC program is federal but administered by each state’s workforce agency (SWA) which makes the final determination to certify or deny the tax credit.

The WOTC program not only creates a positive impact on the nation's unemployment levels, but also affords business owners the incredible opportunity to earn between $2,400 and $9,600 for each eligible new hire. Every year, employers claim over one billion dollars in tax credits under the WOTC program!

Health Care Tax Incentives for Small Businesses

Obamacare or the Affordable Care Act includes a health insurance tax credit for small businesses. This incentive was a means to encourage employers to offer health insurance for the first time or to maintain coverages already in place. If the plan your business has met the qualifications, you could receive up to fifty percent of the health insurance premiums paid to your employees, but not to you as the owner of the business.

Where to Learn About Other Tax Incentives Available to Small Businesses

OnCentive is committed to making sure your business uses all tax incentives available to help your business thrive. With over twenty years of experience in the industry, we deliver technologies that will enable tax incentives to be applied to your business to maximize your benefits and increase your revenue.
Let us help make your business more prosperous by utilizing all tax incentives available.

Chris Wright

Chief Innovations Officer

OnCentive Launches R&D Tax Credit Division to Capture R&D Tax Credit Opportunities For Small Businesses Owners

Tue, 01 Feb 2022 20:24:29 GMT

FOR IMMEDIATE RELEASE: 9/22/2021
OnCentive
855 923-3735
info@OnCentive com

OnCentive Launches R&D Tax Credit Division to Capture R&D Tax Credit Opportunities For Small Businesses Owners

OnCentive, a leader in the tax credit industry, announced today the launch of a Research & Development Tax Credit Division to help small and medium-sized businesses find and identify one of the largest annual tax credits available to U.S. companies.

“The R&D Tax Credit is much more expansive than most businesses owners realize. If your business is improving their products and processes, you qualify, OnCentive can help you take advantage of this lucrative credit,” said Shannon Scott, co-founder and CEO of OnCentive.

Introduced as a way to incentivize companies to keep high-paying jobs in the US, the Research & Development Tax Credit (R&D Tax Credit) program is a federal benefit that provides companies dollar-for-dollar cash savings for performing activities related to the development, design, or improvement of products, processes, formulas, or software.

The R&D credit originally only applied to a few highly technical companies. When it was made permanent in 2015, the definition of the credit has expanded, allowing a wider range of businesses and industries to qualify for this significant valuable federal tax credit.

"Most companies don’t realize how lucrative these credits can be. We have had great success processing federal hiring, geographic, disaster, and covid credits for our clients, and the R&D credit division is just another arrow in the OnCentive quiver that keep us at the forefront of increasing cash flow for small and midsize businesses across the United States," said Scott.

OnCentive’s tax lawyers and accountants determine if a business qualifies for these credits and provides them with the documentation to claim the tax incentives which can be $30,000 to $400,000 in tax credits . Often the credits come as a cash refund and can be enough to offset an entire tax liability. Unused credits can carry back to the previous year or forward for the next 20 years.

Could My Company be Eligible for the R&D Tax Credit?

Eligibility for the R&D Tax Credit is more extensive than most companies realize. Your business could qualify if it is improving products, processes, or technologies, even internally. Companies that may not consider themselves innovative might be surprised to learn that they may qualify for the R&D Tax Credit.

OnCentive experts can evaluate your business’s R&D eligibility for no cost to you.

Lindsay Morton

Chief Growth Officer

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