Latest news with #WorkOpportunityTaxCredit
Yahoo
15-05-2025
- Business
- Yahoo
New York contractors boost pay, benefits to fight labor shortages
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. New York construction firms are ramping up pay and benefits to stay competitive in a tight labor market, according to a new 2025 study from The Bonadio Group, a New York City-based national accounting and advisory firm. The report, which surveyed more than 200 contractors in New York, revealed construction firms are feeling the squeeze of overall building costs. Many firms reported they have had to pass along higher costs to clients or simply delay projects altogether. Both overall and nonresidential input prices are now 0.8% higher than a year ago and sit more than 40% higher compared to February 2020. Meanwhile, the number of quits jumped by 17,000, marking the second straight month of increases. In response, companies are also investing in workforce development programs, expanding flexible work options and introducing mental health resources to attract and retain talent, said Nancy Cox, construction and real estate industry leader at The Bonadio Group. Still, despite these efforts, Cox said contractors are not fully taking advantage of available tax credits, which could help alleviate some of these cost concerns. Here, Cox talks with Construction Dive about New York construction wages, benefit packages and how to stay competitive. This interview has been edited for clarity and brevity. NANCY COX: Based on the results of our study, we found that wages have increased by 12.4% on average as labor shortages persist in the industry. To stay competitive, companies are also implementing other strategies such as offering performance-based bonuses, profit-sharing retirement plans and training and workforce development programs. For example, about 79% of companies now offer cash bonuses, including performance-based and referral incentives. At the same time, over 90% of construction firms provide retirement plans, most often through profit sharing models that link employee and company success. Much like most other industries, companies are going to have to implement new tools such as artificial intelligence and other operational efficiencies in order to balance wage growth amongst rising costs. Our survey found that companies are expanding their employee benefits, such as flexible work arrangements, financial planning assistance and mental health support and wellness programs. Further, companies are investing in advanced safety monitoring systems and smart personal protective equipment to improve worker safety and satisfaction. One thing we found interesting is that a majority of the respondents are not currently taking advantage of available federal and state employment tax credits such as the Work Opportunity Tax Credit. About 82% of respondents were unaware of available federal and state employment tax credits. WOTC is nuanced, but could provide for substantial credits for hiring veterans and underrepresented groups. Recommended Reading MTA plans to build through budget uncertainty
Yahoo
09-05-2025
- Politics
- Yahoo
Opinion - Military spouses are ready to work — policymakers must help make it possible
As a military spouse who has moved five times in nine years, I know how rare it is to have a stable career. I have managed to stay employed thanks to remote work, a flexible industry and an understanding employer. But I'm the exception. Despite being highly educated and eager to contribute, military spouses as a group remain sidelined. Unemployment in our community is nearly five times the national average, and among those working, two-thirds report being underemployed. That's not just a personal hardship — it is a policy failure. Military life brings a host of unique challenges: frequent relocations, licensing roadblocks, inconsistent access to childcare. These structural barriers aren't new, but they remain largely unresolved. And while some progress has been made, it hasn't gone far enough. One glaring issue is professional licensing. At present, many states now offer some form of license reciprocity for military spouses, but policies vary widely and are inconsistently implemented. Temporary licenses often expire before permanent ones are processed, leaving spouses in professional limbo. This is especially burdensome in fields like healthcare, law and education. Many aren't even aware of their options, and there's no clear oversight to ensure states follow through. Congress and the Department of Defense can help by raising the cap on the department's license reimbursement program, expanding multi-state compacts, and pushing states to standardize procedures. Another key barrier is childcare. At my current duty station, waitlists for on-base care are long, licensed off-base care is almost non-existent, and flexible options are limited. I'm not alone; a recent survey found that 67 percent of military spouses say childcare challenges have directly impacted their ability to work or pursue education. If we want to keep military families resilient and economically secure, solving the childcare gap is not optional. There are steps Congress can take right now. First, pass the bipartisan Military Spouse Hiring Act, which would extend the Work Opportunity Tax Credit to employers who hire military spouses. Second, provide targeted funding for portable career training and Defense child development centers. And third, hold states accountable for streamlining licensure processes. Employers also have a role to play. Programs like the Military Spouse Employment Partnership help match spouses with companies offering portable and remote roles. These roles aren't just convenient — they're essential for a population that often picks up and moves every two to three years. This isn't just a family issue; it's a workforce and national security issue. When military spouses are unemployed, it affects financial security, troop retention and readiness. Service members are more likely to leave the military if their spouse's career can't survive military life. The broader economy also pays the price: Military spouse underemployment and unemployment costs the U.S. nearly $1 billion annually in lost income and productivity. We know what works. What we need is sustained commitment from lawmakers, agencies and employers to make it happen. Today, on Military Spouse Appreciation Day, let's do more than say thank you. Let's remove the barriers that hold spouses back and create real opportunity for a workforce that's more than ready to serve. Nicole Tidei is a corporate communications executive, the wife of a U.S. Navy fighter pilot, and the mother of two. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
09-05-2025
- Politics
- The Hill
Military spouses are ready to work — policymakers must help make it possible
As a military spouse who has moved five times in nine years, I know how rare it is to have a stable career. I have managed to stay employed thanks to remote work, a flexible industry and an understanding employer. But I'm the exception. Despite being highly educated and eager to contribute, military spouses as a group remain sidelined. Unemployment in our community is nearly five times the national average, and among those working, two-thirds report being underemployed. That's not just a personal hardship — it is a policy failure. Military life brings a host of unique challenges: frequent relocations, licensing roadblocks, inconsistent access to childcare. These structural barriers aren't new, but they remain largely unresolved. And while some progress has been made, it hasn't gone far enough. One glaring issue is professional licensing. At present, many states now offer some form of license reciprocity for military spouses, but policies vary widely and are inconsistently implemented. Temporary licenses often expire before permanent ones are processed, leaving spouses in professional limbo. This is especially burdensome in fields like healthcare, law and education. Many aren't even aware of their options, and there's no clear oversight to ensure states follow through. Congress and the Department of Defense can help by raising the cap on the department's license reimbursement program, expanding multi-state compacts, and pushing states to standardize procedures. Another key barrier is childcare. At my current duty station, waitlists for on-base care are long, licensed off-base care is almost non-existent, and flexible options are limited. I'm not alone; a recent survey found that 67 percent of military spouses say childcare challenges have directly impacted their ability to work or pursue education. If we want to keep military families resilient and economically secure, solving the childcare gap is not optional. There are steps Congress can take right now. First, pass the bipartisan Military Spouse Hiring Act, which would extend the Work Opportunity Tax Credit to employers who hire military spouses. Second, provide targeted funding for portable career training and Defense child development centers. And third, hold states accountable for streamlining licensure processes. Employers also have a role to play. Programs like the Military Spouse Employment Partnership help match spouses with companies offering portable and remote roles. These roles aren't just convenient — they're essential for a population that often picks up and moves every two to three years. This isn't just a family issue; it's a workforce and national security issue. When military spouses are unemployed, it affects financial security, troop retention and readiness. Service members are more likely to leave the military if their spouse's career can't survive military life. The broader economy also pays the price: Military spouse underemployment and unemployment costs the U.S. nearly $1 billion annually in lost income and productivity. We know what works. What we need is sustained commitment from lawmakers, agencies and employers to make it happen. Today, on Military Spouse Appreciation Day, let's do more than say thank you. Let's remove the barriers that hold spouses back and create real opportunity for a workforce that's more than ready to serve. Nicole Tidei is a corporate communications executive, the wife of a U.S. Navy fighter pilot, and the mother of two.
CBS News
30-04-2025
- Business
- CBS News
How does the IRS work opportunity tax credit work?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. If you're a business owner, taking advantage of the Work Opportunity Tax Credit could result in saving thousands of dollars on your taxes. Getty Images/iStockphoto If you're a business owner, you're likely on the lookout for ways to save money, especially in today's uncertain economic environment. But what if hiring the right person for the job could also earn you a tax break with the Internal Revenue Service (IRS)? That's what the Work Opportunity Tax Credit (WOTC) is designed to do. It rewards companies for hiring people who've had a difficult time finding employment, like veterans, people who have been long-term unemployed and those receiving government assistance. Established by Congress as part of the Small Business Job Protection Act of 1996, this employer-friendly tax credit creates a win-win scenario: Employers receive tax savings while those who are facing employment barriers gain valuable opportunities to enter or re-enter the workforce and achieve financial independence. And, this federal tax credit can be quite valuable as a business owner, as it can knock thousands off your tax bill for each eligible employee that's brought on board. But while the Work Opportunity Tax Credit has been around for years, many employers still don't know about it or assume it's too complicated to take advantage of. This credit is worth a closer look, though — especially if you're already hiring. Find out how to get help with your IRS tax debt now. How does the IRS Work Opportunity Tax Credit Work? The Work Opportunity Tax Credit is a federal income tax credit available to employers who hire candidates from certain target groups who have consistently faced significant barriers to employment. The credit, which directly reduces an employer's tax liability on a dollar-for-dollar basis, making it more valuable than a tax deduction, is authorized under the Internal Revenue Code and administered jointly by the IRS and the U.S. Department of Labor (DOL). The amount of the credit varies based on the number of hours worked and the employee's wages during their first year of employment. For most eligible hires, employers can claim a tax credit equal to 40% of the qualified employee's first-year wages, up to the maximum credit amount for that target group, if the employee works at least 400 hours during their first year. If the employee works between 120 and 399 hours, employers can claim 25% of the first-year wages. That generally equates to a credit of up to $2,400 per qualifying employee, according to the U.S. Department of Labor. However, the credit amount can go as high as $9,600 for certain veterans and up to $6,000 for individuals who receive long-term government assistance. To claim the credit, employers must complete these key steps: Pre-screen applicants: Before or on the date of the job offer, the employer must have the applicant fill out IRS Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Credit). Submit paperwork: The employer must then submit Form 8850 to the appropriate state workforce agency (SWA) within 28 days of the new employee's start date. Receive certification: If the SWA certifies that the employee belongs to one of the WOTC target groups, the employer may claim the credit by filing IRS Form 5884 when submitting their federal tax return. Explore the tax relief options available to you today. What are the benefits of the Work Opportunity Tax Credit? The most obvious benefit of the WOTC is the reduction in tax liability for business owners. The credit is non-refundable, which means it can directly lower the amount of income tax a business owes for the year, but it won't result in a refund if the credit exceeds the business's tax bill. That said, any unused credit can typically be carried back one year or carried forward for up to 20 years, which makes it even more valuable over time. Another major benefit is that the credit supports inclusive hiring practices. By incentivizing employers to consider job candidates who might otherwise struggle to find work — such as people with disabilities or those with criminal records — the WOTC encourages diversity in the workforce and helps close employment gaps for marginalized groups. The program is also available to both for-profit businesses and certain tax-exempt organizations (such as 501(c)(3) nonprofits), although nonprofits can only claim the credit for hiring qualified veterans, SNAP recipients or those who have been unemployed for a certain period of time. For small businesses in particular, though, taking advantage of the WOTC can be a smart way to offset onboarding costs while building a more inclusive team. Who qualifies for the Work Opportunity Tax Credit? To qualify for the WOTC, an employee must fall into one of the IRS-defined target groups. Some of the most common groups include: Veterans, including those with service-connected disabilities or who have been unemployed for extended periods Recipients of Temporary Assistance for Needy Families (TANF) Recipients of Supplemental Nutrition Assistance Program (SNAP) benefits Designated community residents (those who live in certain economically distressed areas) Ex-felons hired within a year of release or conviction Vocational rehabilitation referrals Summer youth employees living in empowerment zones Supplemental Security Income (SSI) recipients Long-term unemployed individuals To be eligible, the employee must be newly hired (and not someone who has previously worked for the business) and must work at least 120 hours for the employer to qualify for a partial credit. Employees who work 400 hours or more generally allow the employer to claim the maximum available credit. The bottom line The Work Opportunity Tax Credit represents a valuable but often underutilized resource for businesses seeking to reduce tax liability while expanding their workforce. By providing substantial financial incentives for hiring candidates from disadvantaged backgrounds, the program creates positive outcomes for employers, employees and communities alike. For businesses interested in claiming the WOTC, the key is understanding the qualification requirements and the certification process. While there is some administrative work involved in claiming this credit, the potential tax savings make it well worth the effort for many employers.
Yahoo
15-04-2025
- Business
- Yahoo
5 Financial Lessons You Should Learn From Trump's Tax Returns
President Donald Trump's tax returns have revealed strategies that reduced his tax bills but also highlighted risks every taxpayer should avoid. Find Out: Learn More: For individuals and business owners, these records offer critical lessons about leveraging tax laws and managing risk. Here are five key takeaways to guide smarter financial decisions, blending Trump's methods with expert-approved compliance strategies. Trump's tax returns demonstrated the aggressive application of net operating loss (NOL) carryforwards. This is a provision that allows businesses to deduct losses from previous years against current or future income. In 2015, he reported a $105 million loss carried forward, followed by $73 million in 2016, which significantly reduced his taxable income during his presidency, according to Politico. When done right, this strategy offers significant tax relief for small businesses without raising red flags. While small businesses can adopt similar tactics, they must ensure losses are legitimate and well documented to avoid IRS scrutiny. Marcus Sturdivant of The ABC Squared suggested businesses avoid consecutive years of losses, which attract audits. Consulting a professional ensures compliance, especially when navigating complex rules like IRC Sections 704(d) and 465. Be Aware: Trump's tax returns revealed issues with mixing personal expenses with business deductions, a practice that increases audit risks. Trump's private aircraft companies, DT Endeavor I LLC and DJT Aerospace LLC, had similar revenues and expenses in 2016, which removed their tax obligation. The Joint Committee on Taxation questioned the validity of these deductions and whether they were for personal activities, per USA Today. Structuring your business as an LLC or S-corporation creates legal separation, shielding personal assets from liabilities. Sturdivant suggested practical steps, like opening separate bank accounts, using distinct credit cards and labeling receipts with details like 'lunch with client,' to keep matters separate. Clear separation of finances is not just a best practice but a legal necessity. Mixing personal and business accounts complicates audits and increases liability risks. Trump's returns revealed significant use of historic rehabilitation tax credits, which reward property owners for restoring certified historic structures. These credits offset up to 20% of qualified renovation costs. For example, Trump applied credits from the redevelopment of the Old Post Office in Washington, D.C., to reduce liabilities across multiple entities, according to Washingtonian. Even if you're not restoring a historic property, this is a good lesson about taking advantage of tax credits when you qualify. Sturdivant pointed to the Small Business Health Care Tax Credit, which 'helps employers with fewer than 25 employees offset up to 50% of health insurance premiums.' He also emphasized the Work Opportunity Tax Credit, which 'offers up to $9,600 per hire for businesses employing individuals from disadvantaged groups.' These strategies can offer a significant return on investment for small businesses and average earners alike. In 2022, the Trump Organization faced a conviction for tax fraud and was fined $1.6 million, according to PBS News. The company was found guilty of compensating executives with off-the-books perks, including luxury apartments and cars, without reporting them as income. Sturdivant advised staying updated on tax code changes — such as evolving Beneficial Ownership Information (BOI) rules — to avoid penalties. Businesses should benchmark deductions against industry norms. Regular third-party audits catch errors early, ensuring numbers align with filings. Transparent records are the first defense against disputes. Trump's tax returns highlight the risks of walking the fine line between legal tax avoidance and questionable practices. WHDH News in Boston reported that he charged his children market-rate interest on loans to avoid gift taxes, a tactic scrutinized by the Joint Committee on Taxation for potential undervaluation. Sturdivant suggested business owners apply what he calls the 'reasonable person standard' when evaluating tax strategies. 'If you have to ask whether it's ethically shaky, that's a sign,' he explained. Ultimately, taxpayers should do their due diligence to make sure they're maximizing their tax savings within the law. 'Reviewing tax codes thoroughly and consulting multiple professionals is needed to ensure strategies are both legal and defensible. Aggressive tax moves may offer short-term savings but can lead to audits, penalties or reputational damage,' Sturdivant said. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GoBankingRates6 Reasons Your Tax Refund Will Be Higher in 2025 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 5 Types of Vehicles Retirees Should Stay Away From Buying This article originally appeared on 5 Financial Lessons You Should Learn From Trump's Tax Returns Sign in to access your portfolio
