Work Opportunity Tax Credit
WOTC is a federal tax credit that is available to employers that hire specific group of people to include veterans and other individuals. The maximum credit ranges from $1,200 – $9,600. The credits are equivalent to 25% or 40% of new employees first year wages. For example, if employer hires employees that meets the criteria and if he/she works at least 120 hours during the first year. (i.e. Annual wages $27,000/yr) The employer will qualify for 25% of first year wages or $6,750 for hiring that employee. Also, if work at least 400 hours there is a 40% credit of first year wages limited to $9,600.
FBAR
What do you need to know about filing the Foreign Bank of Financial Accounts (FBAR)? Here are some quick facts:
Due date: April 18, 2018
Extensions: FINCEN will grant filers failing to meet the FBAR annual due date of April 18 and automatic extension to October 15 each year
Who must file: US citizens with financial interest or signature authority over 1 or more accounts located outside the US (e.g. India) and aggregate value of all foreign financial accounts exceeded $10K at any time during calendar year
Where to file: BSA E-Filing System – basefiling.fincen.treas.gov
Exceptions to the rule to file: Call our office 847-387-4233
Do you need to file form 8938 – Statement of Specified Foreign Financial Assets ? If you are a specified unmarried individual living in the US and the value of foreign assets are more than $50K on last day of the year or more than $75K any time during the tax year.
If filing status is married and is more than $100K on last day of the year and value fluctuates to more than $150K any time during the tax year.
Classification: Independent Contractor vs. Employees
There are many industries that classify workers as employees because the industry dictates how business is conducted. For example, in home healthcare agency, many workers have second jobs. The worker choose when they are able to work. However, the reality is the case indicates when the services are needed. Employers look a this as not having behavioral control over the worker. Which they actual do have behavioral control. The shifts are set my client/patient or insurance company. The worker must work within this time frame or the employer can not bill insurance company. So the employer will find an CNA that will work at a lower rate to satisfy the case.
Determining if the worker is an independent contractor vs employee review the IRS guidelines in Publication 15A and give us a call. If you can answer yes to any of the questions below, chances are you may be misclassifying your workers.
Check the publication make sure your industry is not misclassifying workers. (e.g. cleaning services)