Enterprise-grade solutions with personalized support.
Learn more
We focus on growing businesses because they are the main engine of the US economy.
Learn More
We are a technology and service company that puts people first in everything we do.
Learn More
Enterprise HCM software and services for growing businesses.
Learn More
How CAVU Human Capital Management helped Risinger* pave a path to growth
Learn More
CAVU HCM gives Riverfront the cost-effective, simple payroll solution they need.
Learn More

Tax Credits 

Learn about Work Opportunity Tax Credits with CAVU.

tax-credit-service

CAVU Tax Credit Service

CAVU HCM’s tax credit service helps organizations of all sizes identify work opportunity tax credits. A provided Payroll Tax Manager will research, apply for, and recoup credits available for your company based on factors such as:

  • The tax jurisdictions where you hire and pay your employees
  • The number of people you hire
  • The size of your payroll
  • The kinds of people you hire
Managers often fail to register out-of-state employees

Industry experts share 8 common mistakes managers are making while managing their remote teams.

View PDF guide

Work Opportunity Tax Credits for Everyone

Credits Eligibility
Credits vs Deductions
Work Opportunity Tax Credit

Credits Eligibility

Credits Eligibility

Tax credits are entitlement subsidies: explicit amounts of money, measured dollar-per-dollar, that eligible companies can subtract from their total taxes owed. While criteria and eligibility range by state and industry, common credits are awarded based on overall earnings, size of payroll, employee backgrounds, geographic location, and more. Solving the complicated process, CAVU’s Tax Claim service  applies and recoups your work opportunity tax credit.

credits-eligibility

Credits vs Deductions

Credits vs Deductions

Credits vs Deductions Tax Credits reduce the amount of total taxes owed, while deductions lower the amount of taxable income for the year. Similar in concept, the two differ in practice. For example:

  • A $1,500 tax credit would lower a company’s tax burden by $1,500 - if a company’s taxes were initially $5,000, tax credits would reduce the total to $3,500.
  • A $1,500 tax deduction lowers the total taxable income by $1,500 - in the lowest tax bracket (10%), total owed taxes would be reduced by $150.
employee-onboarding

Work Opportunity Tax Credit

Work Opportunity Tax Credit

A Federal tax credit, the Work Opportunity Tax Credit (WOTC) rewards employers for hiring individuals from certain targeted groups that face significant barriers to employment. Returns vary on a case-by-case basis, with employers eligible for as much as $9,600 per employee. Defined by the Internal Revenue Service, targeted groups include:

  • Qualified Veterans
  • Ex-Felons
  • Designated Community Residents
  • Vocational Rehabilitation Referrals
  • Summer Youth Employees
  • Supplemental Nutrition Assistance Program (SNAP)
  • Recipients
  • Long-Term Family Assistance Recipients
  • Qualified Long-Term Unemployment Recipients
work-opportunity
Explore CAVU further