Unlock Potential with Tax Credits

Tax Credit Service

Our tax credit service helps organizations of all sizes identify work opportunity tax credits. A provided Payroll Tax Manager will research, apply for, and recoup credits available for your company based on factors such as:

• The tax jurisdictions where you hire and pay your employees
• The number of people you hire
• The size of your payroll
• The kinds of people you hire

Credits Eligibility

Tax credits are entitlement subsidies: explicit amounts of money, measured dollar-per-dollar, that eligible companies can subtract from their total taxes owed. While criteria and eligibility range by state and industry, common credits are awarded based on overall earnings, size of payroll, employee backgrounds, geographic location, and more. Solving the complicated process, IRIS’s Tax Claim service applies and recoups your work opportunity tax credit.

Credits vs Deductions

Credits vs Deductions Tax Credits reduce the amount of total taxes owed, while deductions lower the amount of taxable income for the year. Similar in concept, the two differ in practice. For example:

• A $1,500 tax credit would lower a company’s tax burden by $1,500 – if a company’s taxes were initially $5,000, tax credits would reduce the total to $3,500.
• A $1,500 tax deduction lowers the total taxable income by $1,500 – in the lowest tax bracket (10%), total owed taxes would be reduced by $150.

Work Opportunity Tax Credit

You could be missing out on thousands of dollars per year.

The Work Opportunity Tax Credit (WOTC) is a federal tax credit program that rewards employers for hiring individuals from targeted groups that face significant barriers to employment. Employers may be eligible for up to $9,600 per employee. Targeted groups include:

• Qualified Veterans
• Ex-Felons
• Designated Community Residents
• Vocational Rehabilitation Referrals
• Summer Youth Employees
• Supplemental Nutrition Assistance Program (SNAP)
• Recipients
• Long-Term Family Assistance Recipients
• Qualified Long-Term Unemployment Recipients