The “Great Resignation” May Lead To Tax Savings

  • Manufacturing
  • 2/24/2022
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If you are like most manufacturers, workforce continues to be one of your highest priorities. Companies are searching for solutions in various arenas as they attemp...

It seems that everywhere we turn we hear about the “great resignation” or the “great reset” or the “great renegotiation” or one of many other names that describes the large exodus from the workforce.  If you are like most manufacturers, workforce continues to be one of your highest priorities. Companies are searching for solutions in various arenas as they attempt to work through their workforce challenges. 

Work Opportunity Tax Credit

Many manufacturing companies are taking a second look at the Work Opportunity Tax Credit (WOTC).

When a manufacturer hires people from certain targeted categories and employs them for at least 120 hours, they can reduce their federal tax liability by $3,000 per eligible employee, on average. In many cases, manufacturers are finding that 25% of their incoming workforce qualifies, generating significant tax credits to offset their federal income tax liability.

As with many tax advantages, there are several regulations to follow to take advantage of WOTC.  However, you don’t have to navigate it alone. You can visit CLAconnect.com to learn more and watch our short WOTC video.

Thank you to Jen Rohen and Matt Johnson who contributed to this post.

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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