With Ceridian's Tax Credit Services, a new role for HR:
Revenue generator
From the June 2009 issue of Ceridian Connection.
Midsized companies are experiencing something they never thought they would see: HR as a profit center
"This is a state-of-the-art tax credit administration system," says Web Hill, senior vice president of Ceridian Tax Service. "Our entry into this market is perfectly timed; this solution will make a tangible financial difference for Ceridian customers across the nation. It's exciting to be able to provide HR teams the expertise/ability to generate revenue for their companies -- especially now, when budgets are so tight."
How it works
"This program helps your company take advantage of government incentives that reduce corporate federal and state income tax liability," Hill says. "You benefit when Ceridian's Tax Credit Service generates federal and state income tax credits, because those savings go straight to the bottom line. It's like creating a brand new revenue stream."
Tax credit services can't deliver full value unless they deliver a strong qualification process, are precisely targeted and are extremely responsive to change. "That's why Ceridian entered into a partnership with Associated Consultants, Inc. (ACI), Hill says, "ACI impressed us as being at the forefront of this process. Their expertise and technological strength helps us deliver maximum utilization of tax credits."
About tax credits
Ceridian's Tax Credit Service closely monitors federal and state credit incentive programs -- and IRS requirements -- to help companies take full advantage of available tax credits. The goal is to reduce corporate or personal federal and state income tax liability with support that's personal. Hill says, "We treat you like a colleague, not just a number in a system. You deserve a team that knows you, that's engaged and involved in your success."
One of the tax incentive programs that Ceridian's Tax Credit Service administers is geographic in nature and requires no direct involvement by HR. For instance, any employer who pays wages to an employee in a qualified geographic zone can claim a credit of as much as $3,000 per qualified zone employee each year. Full audit documentation is provided, and many companies find that they can recoup refundable federal income tax dollars going back three or four years. "If we generate more in tax credits than you can use in a given year," Hill says, "you can carry the savings forward for up to 20 years."
Another program administered by Ceridian's Tax Credit Service offers tax incentives for employing individuals who meet specific demographic criteria. In these cases, an employer might be able to reduce taxes up to $2,400 during the first year of employment -- or up to $9,000 over two years per eligible employee. Newly enacted legislation provides additional tax incentives and has expanded the category for veterans. Designed to reflect your organization's specific needs and goals, this aspect of the program provides vertical integration with Ceridian payroll solutions.
Make the most of your opportunities
"Taking full advantage of federal and state credit incentive programs is a complex undertaking," says Alan Newcomb, CEO of ACI, "but this is our sole focus. We use a tax credit system that is regularly updated to reflect the most current tax credit legislation. We've created a powerful proprietary mapping system that is continuously updated to reflect the most current boundary designations, because some programs dictate geographic criteria for business sites and individuals. This precise mapping allows us to accurately identify and document eligible tax credits for federal empowerment zones, federal renewal communities, developable sites, the various programs that target specific individuals, and state job creation programs."
Newcomb explains what he enjoys most about working with midsized organizations. "We can provide fresh insight into both HR and tax departments," he says. "After all, in most companies, we're opening up one of the few opportunities for HR to generate money rather than just spending it -- and that feels great. We're proud of our track record as an industry leader, and pleased that our work with CPAs and tax counsels is well accepted. Representatives from the IRS have told us that they've never seen such concise, professional documentation for support -- and that means a lot. We really stand up to audits. This means we take the worry out of the process for the CPAs."
The business of tax credit incentives is dynamic and complex, but potential value can be significant. Newcomb encourages midsized companies to explore the benefits that might await. "These credits are somewhat unique," he says. "They can actually flow through to individual tax liability for pass-through entities such as Sub-S, LLC, sole proprietorships and partnerships -- or at the corporate level for C corporations. Once you own this tax credit, even if you sell the company, you can carry it forward for 20 years. And the three-year retroactive aspect brings smiles all around -- there's nothing better than receiving a check for your refund -- plus interest!"
If your company is a tax paying entity with federal or state tax liability (such as a C corporation, Sub-S or LLC partnership) and has -- or is hiring -- employees, there's a good chance that Ceridian's Tax Credit Services can help turn your HR department into a profit center.
There's no cost to find out how much revenue you can generate. Contact us today.
Midsized companies are experiencing something they never thought they would see: HR as a profit center
"This is a state-of-the-art tax credit administration system," says Web Hill, senior vice president of Ceridian Tax Service. "Our entry into this market is perfectly timed; this solution will make a tangible financial difference for Ceridian customers across the nation. It's exciting to be able to provide HR teams the expertise/ability to generate revenue for their companies -- especially now, when budgets are so tight."
How it works
"This program helps your company take advantage of government incentives that reduce corporate federal and state income tax liability," Hill says. "You benefit when Ceridian's Tax Credit Service generates federal and state income tax credits, because those savings go straight to the bottom line. It's like creating a brand new revenue stream."
Tax credit services can't deliver full value unless they deliver a strong qualification process, are precisely targeted and are extremely responsive to change. "That's why Ceridian entered into a partnership with Associated Consultants, Inc. (ACI), Hill says, "ACI impressed us as being at the forefront of this process. Their expertise and technological strength helps us deliver maximum utilization of tax credits."
| Many Ceridian customers use tax credit savings to fund payroll automation at their companies, freeing HR to focus on more strategic goals. |
About tax credits
Ceridian's Tax Credit Service closely monitors federal and state credit incentive programs -- and IRS requirements -- to help companies take full advantage of available tax credits. The goal is to reduce corporate or personal federal and state income tax liability with support that's personal. Hill says, "We treat you like a colleague, not just a number in a system. You deserve a team that knows you, that's engaged and involved in your success."
One of the tax incentive programs that Ceridian's Tax Credit Service administers is geographic in nature and requires no direct involvement by HR. For instance, any employer who pays wages to an employee in a qualified geographic zone can claim a credit of as much as $3,000 per qualified zone employee each year. Full audit documentation is provided, and many companies find that they can recoup refundable federal income tax dollars going back three or four years. "If we generate more in tax credits than you can use in a given year," Hill says, "you can carry the savings forward for up to 20 years."
Another program administered by Ceridian's Tax Credit Service offers tax incentives for employing individuals who meet specific demographic criteria. In these cases, an employer might be able to reduce taxes up to $2,400 during the first year of employment -- or up to $9,000 over two years per eligible employee. Newly enacted legislation provides additional tax incentives and has expanded the category for veterans. Designed to reflect your organization's specific needs and goals, this aspect of the program provides vertical integration with Ceridian payroll solutions.
| If you employ just 10 qualified people, you could reap approximately $30,000 in tax credits -- every year. |
Make the most of your opportunities
"Taking full advantage of federal and state credit incentive programs is a complex undertaking," says Alan Newcomb, CEO of ACI, "but this is our sole focus. We use a tax credit system that is regularly updated to reflect the most current tax credit legislation. We've created a powerful proprietary mapping system that is continuously updated to reflect the most current boundary designations, because some programs dictate geographic criteria for business sites and individuals. This precise mapping allows us to accurately identify and document eligible tax credits for federal empowerment zones, federal renewal communities, developable sites, the various programs that target specific individuals, and state job creation programs."
Newcomb explains what he enjoys most about working with midsized organizations. "We can provide fresh insight into both HR and tax departments," he says. "After all, in most companies, we're opening up one of the few opportunities for HR to generate money rather than just spending it -- and that feels great. We're proud of our track record as an industry leader, and pleased that our work with CPAs and tax counsels is well accepted. Representatives from the IRS have told us that they've never seen such concise, professional documentation for support -- and that means a lot. We really stand up to audits. This means we take the worry out of the process for the CPAs."
The business of tax credit incentives is dynamic and complex, but potential value can be significant. Newcomb encourages midsized companies to explore the benefits that might await. "These credits are somewhat unique," he says. "They can actually flow through to individual tax liability for pass-through entities such as Sub-S, LLC, sole proprietorships and partnerships -- or at the corporate level for C corporations. Once you own this tax credit, even if you sell the company, you can carry it forward for 20 years. And the three-year retroactive aspect brings smiles all around -- there's nothing better than receiving a check for your refund -- plus interest!"
If your company is a tax paying entity with federal or state tax liability (such as a C corporation, Sub-S or LLC partnership) and has -- or is hiring -- employees, there's a good chance that Ceridian's Tax Credit Services can help turn your HR department into a profit center.
There's no cost to find out how much revenue you can generate. Contact us today.
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