Tax Credits - Human Capital Management

CAVU Tax Credit Service

CAVU HCM’s tax credit service helps organizations of all sizes identify and collect available local, state, and federal 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

A Professionally Guided Service

Unique to CAVU’s services, each client is assigned a personal Payroll Tax Manager. An expert on your company’s state laws, our team members are prepared to manage every aspect of the tax credit process. CAVU Payroll Tax Managers can be expected to:

Explain the tax credit process with clarity and transparency.
Establish a clear agreement with the client, including all relevant dates, deadlines, and expectations.
Research available credits at the local, state, and federal levels to identify eligible opportunities.
Apply for all eligible tax credits on behalf of the client, including hiring credits as new employees are being onboarded.
Ensure all credits are filed before the appropriate eligibility deadlines.
Respond promptly to all questions and concerns - customers will receive responses in 24 hours, guaranteed.

Tax Credits for Everyone

Credits Eligibility

Credits vs Deductions

Work Opportunity Tax Credit

Employee Retention Credit

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 researches applies and recoups tax credit claims your organization is eligible for.

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.

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

Employee Retention Credit

The Employment Retention Credit rewards eligible employers who retained paid employees after March 12, 2020, and before January 1, 2021. Refundable against certain employment taxes, the credit returns 50% of qualified wages paid during the specified time period; wages can be counted up to $10,000 per employee.

Tax Credits Done for You

Ensure your company maximizes your tax credit eligibility with guidance from CAVU.

CAVU Tax Credit Service

A Professionally Guided Service

Managers often fail to register out-of-state employees

Tax Credits for Everyone

Credits Eligibility

Credits vs Deductions

Work Opportunity Tax Credit

Employee Retention Credit

How you can benefit from Tax Credit Services

Minimize Administrative Stress

Optimize Available Tax Credits

Maximize Yearly Profits