Business is built on tension between driving revenue and improving efficiency. The systems underlying financial success tend to be hidden, sometimes dull, often tedious…and critical. However, there’s some good news can impact the overall financial health of your business above and below the EBITDA line.
Above the EBITDA line items such as reducing merchant services, workers compensation premiums by having a 3rd party do the work and split the savings if and when the find it. .
Below the EBIDTA line includes Engineered cost segregation is a specialized engineered study, that seeks to accelerate depreciation of each building component for both an owned new build or renovation or a build out or renovation for a leased property. For example each component of you commercial property looses value at a different rate; cost segregation allows you to claim deductions based on these accelerated depreciation schedule vs straight line depreciations schedule and reduce your tax burden. The great thing is because of the CARES ACT you may be able to to the look back 5 years and reclaim taxes paid.
Another is hiring incentives. Most employers know the basic math – the more employees hired, the bigger the tax burden. There’s an alternative to that inevitable equation – the Work Opportunity Tax Credit, or WOTC for short. Maybe only 1/3 of companies use WOTC, but claim $1B in savings each year because of it – in short, WOTC rewards employers for hiring the right people!
Employers who hire WOTC qualified candidates (for example, a veteran, a returning citizen, or a person with cognitive impairments, to name a few) can receive between $2,000-$9,600 in tax credits per employee, with no limit on how many employees they can hire. Plus, there’s a simple, free calculator online to help find all the tax breaks you might be missing. Human resources becomes a profit center, your business gets more quality candidates, and our entire community grows.
At the end of the day, the health of your business is the health of your bottom line. Now is the time to build a plan for the year ahead; check your credits, use these resources, and you’ll be well on the way to great success.
Click here for more about cost segregation: Click to estimate your benefit
Click here to read more about the Work Opportunity Tax Credit (WOTC): http://myfreshhr.com/business-tax-reductions/new-hire-tax-credits/
Jim Stowe runs Instigate, a Mt Clemens Michigan based consulting organization as
CHIEF INSTIGATOR of: HR EFFICIENCY ,TAX REDUCTION & COST OPTIMIZATION.
Jim has an extensive background in HR services including over 30 years at companies such as ADP, General Mills and Liberty Mutual among others and holds a Master’s Degree in International Business from Central Michigan University