What are jobs tax credits?

Jobs tax credits provide incentives to private profit-oriented employers hiring employees from certain targeted groups.

 

What kind of tax credits exist?

ENTERPRISE ZONE TAX CREDITS, WORK OPPORTUNITY TAX CREDITS including WELFARE TO WORK credits.

 

Can you administer these programs with your own personnel?

Yes, but compare the advantages of Sun West's services:

EXPERIENCE

Sun West offers over 26 years experience in jobs tax credit administration. This knowledge can not be over-emphasized when evaluating our service.

AFFIRMATIVE & E.E.O.

Sun West is a disinterested third party in the employer/employee relationship. All information obtained by Sun West is strictly confidential, and used exclusively to determine eligibility.

COST EFFECTIVE

Sun West works on these programs daily. Our knowledge of local and national procedures accelerates the certification process. Time saved is money saved.

 

Must we change our hiring procedure?

NO. Sun West is not an employment agency. We do not refer applicants to be hired. Sun West determines eligibility of new employees that you select according to your hiring standards. NO CHANGE IN YOUR HIRING PRACTICE.

      ...but do we hire people from these groups?

YES you do! Our clients in the retail, manufacturing and service industries experience a 20% to 30% + eligibility on state Enterprise Zones and a 4% to 10% eligibility on the Work Opportunity Tax Credit.

 

What is Sun West's fee?

Sun West charges a percentage of the gross wages paid certified employees only. Nor all employees earn the maximum wage amount.

 

Are the savings available to you through the CALIFORNIA ENTERPRISE ZONE program worth your time to investigate?

You be the judge:
For simplicity, assume your new hire is a full-time worker, paid $8.62* per hour. His/her annual salary stays the same over five years
$8.62 x 2080 hour per year = $17,930 eligible wages

Year 1 credit @ 50% = $8,965.
Year 2 credit @ 40% = $7,172.
Year 3 credit @ 30% = $5,379.
Year 4 credit @ 20% = $3,586.
Year 5 credit @ 10% = $1,793.

Total 5 year credit = $26,895

*The credit is based on the lesser of the hourly wage paid or 150% of the minimum wage. The 2007 minimum wage was $7.50; 150% of the minimum wage was $11.25. On January 1, 2008, the California minimum wage was raised to $8.00 per hour; 150% of the minimum wage is $12.00. Minimum wage remains the same in 2009.