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Paradigm Partners...Collaborates on New Book
What is the Work Opportunity Tax Credit (WOTC)?
Valant & Company's Solid Rules...Can Ensure Success in Life, Business
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Paradigm Partners Newsletter

September, 2009
Greetings
 
Dear :
 
The purpose of our newsletter is to keep you informed and up-to-date on the latest regarding R&D Tax Credits, Cost Segregation, other tax related issues, Business Development and Personal Development.
 
If you find the Newsletter helpful, you may want to forward it to a friend.  Just click below.
 

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Paradigm Partners Collaborates on New Book

A recently released book called "Cost Recovery - Turning Your Accounts Payable Department Into a Profit Center" by Richard B. Lanza reviews the many tax credits and incentives available to most companies to reduce tax liabilities or receive refunds from the IRS for previously paid taxes.
 
The book includes a chapter "Research and Development Tax Credits" that was developed in collaboration with Paradigm Partners.
 
Take a look at the chapter in the book:
 
 
(Be patient, it will take a little time to download and open)
What is the Work Opportunity Tax Credit (WOTC)?
 
The Work Opportunity Tax Credit (WOTC) is a two year federal tax credit that reduces the federal tax liability of private-for-profit employers.
 
Employers can hire from eleven different targeted groups:  
  • Qualified Temporary Assistance to needy Families Recipients (TANF)
  • Qualified Veterans/Disabled Veterans
  • Unemployed Veterans
  • Qualified Ex-felons
  • Qualified Designated Community Residents (DCR) residing in an Empowerment Zone (EZ), Renewal Community (RC), or in a Rural Renewal County (RRC)
  • Qualified Vocational Rehabilitation Agency Referrals
  • Disconnected Youth
  • Qualified Summer Youth (SY)
  • Qualified Food Stamp Recipients (FS)
  • Qualified Supplemental Security Income Recipients (SSI)
  • Qualified Long-Term Family Assistance Recipients (LTFAR)

 Maximum Credit Available

  • $1,200 for each new Summer Youth* hired
  • $2,400 for each new Adult hired
  • $4,800 for each new Disabled Veteran hired
  • $9,000 for each new Long Term Family Assistance Recipient hired over a two year period

*The credit is based on 40% of up to $6,000 in qualified wages during the first year of employment. Summer Youth qualify for 40% of the first $3,000 in wages during the required working period of May 1 through September 15.

Minimum Employment or Retention Period
 
All new employees must work a minimum of 120 hours and individuals hired as Summer Youth employees must work at least 90 days, between May 1 and September 15, before an employer is eligible to claim the tax credit.
 
Recent program changes took place in 2007 that impacted multiple target groups. One such change was the consolidation of the Welfare-To-Work Tax credit program into the WOTC program to become known as Long-Term Family Assistance and a second change was the creation of the new Disabled Veteran target group that went into effect May 25, 2007. 
 
On February 17th as part of the American Recovery and Reinvestment Act (ARRA) of 2009 two new categories were created Unemployed Veterans and Disconnected Youth.
 

The WOTC Program has been reauthorized until August 31, 2011
 
Important Tax Issues
 
You can claim or elect not to claim the work opportunity credit any time within 3 years from the due date of your return on either your original return or an amended return.
 
The credit will reduce tax liability even if the company is subject to AMT.
 
In general, you must reduce your deduction for salaries and wages by the total amount of the credit. This is required even if you cannot take the full credit this year and must carry part of it back or forward. If you capitalized any costs on which you figured the credit, reduce the amount capitalized by the credit attributable to these costs.
 
To learn more, attend one of our FREE CPE webinars on Federal Hiring Credits which includes WOTC, Federal HUD Zone Tax Credits (Empowerment Zone and Renewal Communities) and the Indian Tax Credit.
 
Valant & Company's Solid Rules
Can Ensure Success in Life, Business

Editor's Note: Today we present the fourth installment in a special inspirational series from business performance improvement expert Laurence B. Valant, who specializes in growing profits for accounting firms and general business. Larry has been a frequent contributor to our newsletter, and again today, we feature excerpts from his new book, Stop Breaking These Rules! 100 Hard-Hitting Truths for Business Integrity and Performance. If you want more information or would like to order a copy of the wonderful new book, please visit www.valantco.com.

25 - Leaders are born; they cannot be made or developed.
 
True leadership is the ability to get people to follow you. The ability to lead is given to us at birth, and cannot be learned or feigned.

Natural leadership can be illustrated on a small scale (micro leadership) by childhood play. If we reflect, we can identify those who led us during childhood or perhaps we realize that during childhood play, we led. On a larger scale (macro leadership) leaders such as Jesus, Hitler, and Gandhi inspired legions to follow them. In both the micro and macro illustrations, leadership is the natural, God-given ability to get people to follow you.

Also in both micro and macro leadership, a vision is stated and the followers perceive they can meet their needs by following. The ability to communicate a vision is essential to leadership.

Indeed, we would never have known who Jesus or Hitler or Gandhi were had they not been able to communicate their vision.
 
26 - People willingly follow a leader.

By definition (mine) people follow a leader. Implicit in this statement is the concept that such following is done willingly. It is important to note that this is not about the relative "goodness" nor the "badness" of the leader in terms of values and morality, but rather about the leader's ability to have people follow willingly.

A classic example of true leadership is illustrated perfectly in the British movie The Admirable Crichton starring Kenneth More. In this old movie, a British noble family is traveling on the high seas with its retinue of servants. The ship encounters a storm and sinks, and the noble family and its servants find themselves shipwrecked on an island. Because survival is at stake, roles can and are reversed, and the natural leader takes over. The fact that this leader is the butler and not the lord makes for an entertaining movie, but more importantly demonstrates the point of leadership and followership absolutely.

So while the lord had been born into a position of leadership, when circumstances opened the door for true leadership, the butler emerges as the leader. The butler provided the vision (survival) and the means to execute the vision. Strictly against the mores of British society, the aristocrats willingly aligned their vision (also survival) with that of the true leader and followed him willingly, to their mutual success - they survived!

True leadership is simply the ability to have people follow you, willingly. When someone with natural leadership abilities leads, they are followed. And as in the case of the butler, these abilities were not given by position or taught to him, they were God given! 
 
27 - Rarely is a true leader in the position of leadership.
 
Positions of leadership rarely are filled by true leaders. To begin with, there are very few true leaders, so there is a small pool from which to choose. And rarely are the decision-makers knowledgeable about true leadership. They rely upon qualitative and anecdotal information presented by very expensive search firms and industrial psychologists. All too often, while well intended, these groups miss the mark grievously.

If decision-makers applied this simple definition of leadership - 1) the ability to have people follow 2) the ability to communicate a vision that people will embrace - they would fill leadership positions with true leaders.

It must be noted that true leadership does not guarantee management competence. Organization planning must deal not just with correctly filling the positions of leadership, but also those reporting to the leader. Those who execute the leader's vision must have strong management capabilities with demonstrated track records of successful execution.

When positions of leadership are filled with trueleaders who are supported with competent managers, a powerful organization exists, an organization that can deliver on time and on budget. Such an organization benefits owners, managers, employees, and customers.
I hope you have benefited from our Newsletter.  Do not hesitate to contact me if you have any questions about what you heard or read in this Newsletter. 
 
Sincerely,

Mark Lauber
VP of Marketing
Paradigm Partners
281-558-1700 X-105

www.ParadigmLP.com