Uncle Sam is willing to give businesses a tax credit if they hire members of certain targeted groups before January 1, 2008. 

For example, the "work opportunity credit" entitles a business to a tax break for hiring former felons and people from economically disadvantaged backgrounds.

With the "welfare-to-work credit," a business can collect a tax break for hiring a long-term recipient of family assistance. There is also a credit for wages paid within designated "empowerment zones."

These tax credits can be worth thousands of dollars to your company. Unlike a tax deduction, which reduces your taxable income, a tax credit reduces your tax bill on a dollar-for-dollar basis. But the employee must be certified before or up through the start date of employment. New hires must be employed for at least 400 hours or 180 days.

Note:  Unless Congress acts to extend it, this credit is only available for eligible employees who begin work no later than December 31, 2007.

Contact us before you hire an employee that qualifies your company for one of these credits. The proper paperwork must be filed and certain deadlines must be met. We can provide the details and help you collect the tax breaks your business deserves.

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