Train-the-Trainer and Tax Credits
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Many companies have employees train other employees. For example, some employees may travel to a software vendor's site for training on new software. These employees (that is, the trainers) return to their company and train other employees (that is, the students) on the software. This train-the-trainer event potentially qualifies for the Retraining Tax Credit.
Here are ideas to keep in mind if your client has employees training other employees:
- The software vendor's course cost and your "trainer" employee's time, travel and living expenses may be included in the costs of training.
- Your "trainer" employee's time and costs to prepare for the in-house course may be included in training development costs.
- Your "student" employees' time and costs for the in-house course may be included
- The employee training may include software and other new technologies such as LEAN manufacturing initiatives, Quality, ISO-9000 programs, SQF-2000 activities, and other business process and work flow changes.
Help your clients understand that the Retraining Tax Credit can help pay for their in-house train-the-trainer programs! |
Quality Jobs Tax Credit
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Georgia's Quality Jobs Tax Credit is for companies that add 50 or more new higher-paying jobs in a 12 month period. Unlike the regular Job Tax Credit, which is for overall headcount increase (that is, net new jobs), this tax credit is for specific individuals hired and their individual pay rates.
Here is an overview: - The individual pay rates must be at least 10% higher than the county average (for county averages click here)
- The tax credit ranges from $2,500 to $5,000 per job, depending on the wage level
- It can be taken every year for 5 years -- if a company hires and maintains 50 qualified individuals that meet the $2,500 tax credit level and keeps them for 5 years, the tax credit will be $625,000 (50 jobs x $2,500/job x 5 years)
- The tax credit can be applied to one prior amended year and has a 10 year carry forward
- It can be utilized against Georgia income taxes (up to 100%) or Georgia payroll withholding taxes
- Jobs that don't meet the higher paying job threshold can be counted towards the regular Job Tax Credit
- Form Georgia form IT-QJ must be submitted with the client's state income tax return (to download form click here)
- For details, see DOR regulations (download click here).
Do you have a client or prospect that plans to add jobs in Georgia? Let them know they have some great options as they finalize their plans!  |
About Us------------------------------------------------------------------------- Alpharesults has assembled a team with the specialized knowledge and approach required to obtain Georgia income tax credits. We are not a public accounting firm. Rather, our services complement those of public accounting firms and do not create conflicted loyalties, because our professionals do not perform attestation work or other external audit functions. We focus on small to medium-sized businesses and work exclusively in Georgia with a wide variety of in-state and out-of-state accounting firms. For more information on our services, follow this link. |
