If you own a business and hire employees, you may be eligible for certain tax credits that could lower your tax obligation.
For example, if you provide qualified childcare resources for your workers, you may be able to utilize the Credit for Employer-Provided Childcare Facilities and Services. This credit applies to qualified expenses you paid for childcare resources for your employees.
If you hire workers from high poverty areas, or who have special employment needs, you may be able to claim the Work Opportunity Tax Credit.
You may also be able to take credits for the Social Security and Medicare taxes you pay for employee tips if you operate a food and beverage establishment. If you have an employee called to active duty in the military for more than 30 days, you may be able to get a credit if you continue to pay that employee’s wages.
The cost of providing health insurance coverage for certain employees may qualify you for a credit. And, if you initiate a pension plan such as a 401(k) or SIMPLE plan for your employees, you may be able to get a credit for the costs associated with the startup of the plan.