• Employment Credits & Incentives

    Federal, state and local tax credits exist for employers that create
    jobs, retain employees and provide training and other opportunities.

    Employee Retention Credit Calculator

Incentivizing employers for job creation, hiring and training.

People are the most important element of any business, therefore the investments made in human capital—through compensation, training or benefits—must be made wisely. Companies that invest in their workforce may be able to offset these costs with tax incentives.
Federal, state and local governments offer workforce programs that incentivize workplace diversity and facilitate access to jobs for American workers. Employment-related tax credits and incentives are offered to employers who create jobs, hire individuals from targeted groups, retain employees and provide training opportunities.
BDO’s multidisciplinary team helps companies identify, claim and support employment-related tax credits and incentives. We leverage technology-enabled solutions to help employers gather the information needed to calculate and claim credit opportunities while maintaining the privacy of employees.
  • Work Opportunity Tax Credit (WOTC): rewards employers for hiring individuals from certain targeted groups who have faced significant barriers to employment.
  • Job Creation Tax Credits: provide state income tax credits for net, new job creation in most states. Retroactive refunds may be available for companies that have underutilized or missed these benefits.
  • Negotiated Incentives: encourage new job creation in many states and may include cash grants or refunds of state withholding taxes over long-term agreements.
  • Employee Retention Credit: helps and encourages employers whose businesses are negatively affected by COVID-19 to keep employees on their payroll. Various states may also offer job-retention incentives for companies investing in the long-term viability of their manufacturing facilities.
  • Disaster Zone Credit: helps and encourages employers affected by qualified disasters to keep employees on their payroll.
  • Empowerment Zone Credit: rewards companies that offer jobs in distressed areas.
  • Additional Incentives: includes payroll tax rebates, training grants, state job tax credits, meals and entertainment deductions and more.