How would you like a tax credit of up to $3,000 for each new employee you hired in 2012? Even better, how would you like this credit if the only employee you hired was yourself?
Well, thanks to the State of California, a credit of $3,000 for every new full-time employee – salaried or hourly – added to the payroll of a California employer with fewer than 20 full-time employees at the start of 2012 is available to qualifying employers.
Because only $400 million was allocated to the credit in 2009, the credit won’t be available long term. Fortunately, Gedeon Law & CPA has done some research and is pleased to say the credit is still available for employers filing a 2012 California tax return.
To qualify for the credit, you’ll need to meet the following requirements:
- Your business must have had no more than 20 full-time equivalent employees in the previous tax year;
- Your business must increase its number of full-time equivalent employees in the current tax year;
- Your business must have a total of 20 or fewer employees on the last day of the current tax year;
- Your qualified full-time hourly employee is paid wages for not less than an average of 35 hours per week;
- You are a sole proprietor, C Corporation, S Corporation, LLC or Partnership.
At Gedeon Law & CPA, we are well versed in the nuances of the CA New Jobs Credit and have been working with our clients to claim the credit since its introduction in 2009. In fact, to aid our clients with realizing the maximum tax benefit claimed under the credit, we’ve put together spreadsheet that can be used to easily calculate the credit.
Contact us today if you require assistance with applying for the New Jobs credit or have any questions on this credit.