Earlier I posted the press release dated August 12, 2010 on the new Illinois Small Business Tax Credit. That post can be found here. Here are a number of important details you need to know in order to claim this credit.
1. The most important detail is that you, as the employer, must register your new hire online, as soon as you hire this individual. Registration takes place at JobsTaxCredit.illinois.gov.
2. The credit is granted on a first-come, first-served basis and will support about 20,000 new jobs. Registering your new employee at JobsTaxCredit.illinois.gov is critical in order to stake your claim before the funds run out.
3. Eligible employers must have fewer than 50 full-time employees as of June 30, 2010.
4. The tax credit is worth $2,500 per new hire; tax credits will be issued beginning July 1, 2011 and will be used to offset the employer’s payroll tax withholding for Illinois taxes.
5. The position for which this credit qualifies must pay no less than $13.75 per hour.
There are other qualifications and Illinois has a very good FAQ document at their website. I would highly recommend reading this document. If you still have questions, feel free to contact us for details.
Steve Trojan, CPA is owner of SMT & Associates, Inc. (www.smt-associates.com), a Crystal Lake IL based tax and accounting firm, and Complete Payroll Inc, (www.completepayrollinc.com) a payroll processing firm. He specializes in tax and accounting issues affecting small business owners.
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