The administration of employment tax credits might easily lead you to conjure up thoughts of a monumental paper shuffle. In many places, that may well be the norm. One thing is for sure: administering tax credits requires knowledge and focus, consumes resources and time, creates an expense, and needs a strategy to succeed. It also requires you to acquire the mindset that you are dealing with a moving target at all times – from federal, state, and local legislation that can add or delete credit opportunities tomorrow, next month or next year, to following the compliance rules of promulgating authorities that require strict adherence to forms and flow.
To say that tax credit administration is a daunting task is an appropriate example of a proverbial understatement. There are currently more than 2,000 federal, state, and local tax credits in effect representing a cumulative value in the billions of dollars. To benefit from these credits, and in particular, employment tax credits, employers must identify the credits for which they may be eligible, apply for them using the correct forms and procedures, and follow up with the appropriate government agencies during the certification or application process until the certification is complete.
