2

Oct

Hurricane Relief for Employers Signed Into Law

The Disaster Tax Relief and Airport and Airway Extension Act of 2017 has been signed into law. As noted earlier, among many other provisions, a new tax credit has been created to assist employers who “conducted active trade” in the disaster zones of Hurricanes Harvey, Irma, and Maria, and whose “trade or business” was disrupted as a result of hurricane damage.  The credit applies to 40% of wages paid to an employee “whose principal place of employment” lies within the disaster zone.  Wages as defined in the bill includes any and all dollars “paid without regard to whether the employee performs no services, performs services at a different place of employment than such principal place of employment, or performs services at such principal place of employment before significant operations have resumed.”  The credit wage base is $6,000, meaning the maximum credit available is up to $2,400 per employee, with no limit on the number of eligible employees’ wages that can be calculated.

It is important to note that this credit is wholly separate from the Work Opportunity Tax Credit (WOTC) and does not require employee certification or screening and employees do not have to be part of any other targeted group other than working in a designated disaster zone.

The period for eligible wages to be paid are as follows:

  • Harvey - August 23, 2017 to January 1, 2018
  • Irma - September 4, 2017 to January 1, 2018
  • Maria - September 16, 2017 to January 1, 2018

HIREtech is the only firm that has the people, tools, and technology to help you identify, capture, substantiate, and defend these important opportunities. Payroll data is key to ensure documentation for audit purposes, and we have existing relationships with many payroll providers.  These relationships allow us to seamlessly obtain key data to identify and substantiate credit calculations.

HIREtech is proud to be headquartered in the Houston Energy Corridor, with additional offices in Miami.  We are experiencing the devastating effects of hurricanes Harvey and Irma firsthand.  In addition, as a qualifying business ourselves under this new legislation, we understand how important these credits can be to help businesses rebuild.

For more information about how HIREtech can help those affected by hurricanes Harvey, Irma, and Maria rebuild their businesses, please contact us at info@hiretech.com or 844-HIREtec.