The Tax Credit Experts at Sharp Payroll have the knowledge and expertise in what tax credits your business qualifies for based on who and when you hire.

How It Works

The Tax Credit Experts at Sharp payroll go through in depth process to ensure you receive every credit you deserve.

  • We look back to see if there are credits you can obtain retroactively.
  • We develop a process that easily identifies individuals that qualify your business for a tax credit.
  • We do all the work in order to submit the appropriate paperwork to the proper agency on your behalf.
  • We track the process and let you know when the credit is available to you and let you know how to obtain it.
  • If you don’t get credits, you don’t pay!

What Kind of Credits?

Billions of dollars in tax credits are lost every year because businesses don’t have the knowledge or time to take advantage of the available government incentives. The Tax Credit Experts at Sharp Payroll focus on the following credits that are applicable to the largest number of employers:

Employee FICA Tip Credit

Qualifying Business

  • Must have employees that are tipped for serving food or beverages
  • Must have incurred payroll taxes on those tips

Tax Credit

  • Equal to social security and Medicare taxes paid on qualifying tips over the Federal minimum wage
  • Reduces federal income tax
  • IL tipped employees are worth at least 23.7¢ per hour in tax credits!

IL Credit for Wages Paid to Qualified Veterans – Up to $1200!!!

Qualifying Veteran

  • IL resident
  • Member of Armed Forces that served on active duty:
    • Operation Enduring Freedom
    • Operation Iraqi Freedom
    • Desert Storm
  • Honorably discharged
  • Hired on or after 1/1/2007

Employer Requirement

  • Employ qualifying veteran for 185 days during the tax year

Tax Credit

  • 5% of wages up to $600 for veteran hired between 1/1/2007-12/31/2009
  • 10% of wages up to $1200 for veteran hired on or after 1/1/2010
  • Reduces IL state income tax
  • May carry forward up to 5 years

Illinois Small Business Tax Credit

Eligible Small Businesses

  • Eligible if, as of June 30, 2010, you employed 50 or fewer full-time employees (counting all locations).

Eligible Jobs

  • Created between 7/1/12 – 6/30/16.
  • Position pays no less than $10/hour or equivalent with minimum $18,200 annually.
  • Position sustained for at least one year (not necessarily held by the same individual for the year).
  • Hourly or full-time, but not partners or independent contractors.

Tax Credits

  • Certificate after one year
  • $2,500 per eligible job
  • Credit against IL withholding liability

IL Credit for Wages Paid to Ex-Offenders – Up to $600!!!

Qualifying Ex-Felon

  • Incarcerated in an Illinois adult correction center
  • Hired within one year of being released
  • Convicted of a felony other than:
    • A crime of violence
    • Class X felony
    • An offense which probation is not allowed
    • Sex offense
    • Crime of bodily harm
  • Hired on or after 1/1/2007

Employer Requirement

  • Employ qualifying veteran for 185 days during the tax year

Tax Credit

  • 5% of wages up to $600 for ex-offender hired after 1/1/2007
  • Reduces IL state income tax
  • May carry forward up to 5 years

 

Definitions for Qualified Groups

  1. Long-term TANF recipient — member of a family that received Temporary Assistance for Needy Families (TANF) for at least 18 consecutive months ending on the hiring date; or receives TANF payments for any 18 months (whether or not consecutive) beginning after August 5, 1997, and the earliest 18-month period beginning after August 5, 1997, ended during the past 2 years prior to the hiring date; or whose family stopped being eligible for TANF payments because Federal or state law limited the maximum time those payments could be made, and the individual is hired not more than 2 years after such eligibility ended.
  2. Other TANF recipient — member of a family that received TANF payments for any 9 months during the 18-month period ending on the hiring date.
  3. Veteran – member of a family that received assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date; or a disabled veteran entitled to compensation for a service-connected disability and is hired not more than one year after being discharged or released from active duty; or a disabled veteran entitled to compensation for a service-connected disability and was unemployed for a period or periods totaling at least 6 months (whether or not consecutive) in the one-year period ending on the hiring date.
  4. 18-39 year-old SNAP (food stamps) benefits’ recipient — member of a family who is at least age 18 but not yet 40 on the hiring date, and who received SNAP (food stamps) benefits for either the 6-month period ending on the hiring date, or he/she is no longer eligible for such assistance under Section 6(o) of the Food Stamp Act of 1977, but the family received SNAP benefits for at least 3 of the 5-month period ending on the hiring date.
  5. 18-39 year-old designated community resident ∗– and individual who is at least age 18 but not yet 40 on the hiring date and lives within an Empowerment Zone (EZ), Renewal Community (RC), or Rural Renewal County (RRC).
  6. 16-17 year-old summer youth — individual who works for the employer between May 1 and September 15, is at least age 16 but not yet 18 on the hiring date (or if later, on May 1), has never worked for the employer before, and lives in an Empowerment Zone or Renewal Community. ∗∗
  7. Vocational rehabilitation referral — disabled person referred to the employer upon completion of (or while receiving) rehabilitation services approved by the State, an Employment Network under the Ticket-to-Work Program, or the Department of Veterans Affairs.
  8. Ex-felon — individual who was convicted of a felony and who is hired not more than one year after the conviction or release from prison.
  9. SSI recipient – individual who is receiving Supplemental Security Income benefits for any month ending during the past 60-day period ending on the hiring date.
  10. Hurricane Katrina employee – an individual who, on August 28, 2005, had a primary residence in the Gulf Opportunity (GO) Zone (core disaster zone) and, during a 4-year period beginning on this date, is hired to perform services, principally, in the GO Zone. State certification does not apply to this group.

Some employees do not qualify the employer for the WOTC. They include:

  • Relatives and dependents,
  • Majority owners of the employer, or
  • Former employees.