Georgia jobs tax credits available to businesses hiring telecommuters
INSIGHT ARTICLE |
Authored by RSM US LLP
The Georgia Department of Revenue recently promulgated new regulations expanding the state’s job tax credit program to telecommuting employees. The Georgia Jobs Tax Credit generally provides a statewide tax credit for any business that is engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, research and development industries or services for the elderly and persons with disabilities. The tax credits are available to any headquarters of qualifying businesses. In certain circumstances, the credit is available to all businesses operating in designated counties. Designated counties are determined by unemployment rates, per capita income, and poverty levels. These designated counties also allow businesses to elect to utilize the credits against state payroll withholding taxes. Depending on the location of the employer, the credits range from $750 to $4,000. Manufacturers of personal protection equipment may be eligible for additional job tax credits.
In the new regulations, the department extended the jobs tax credit to telecommuting workers. Qualifying businesses can receive the credit for telecommuting employees who were or are hired in 2020 or 2021. The telecommuter must work at least 35 hours a week and be paid at or over the lowest country average wage. The business must also offer health insurance to the employee. Under the regulations, the telecommuting employee must live and work in Georgia.
As the global pandemic continues, more companies are allowing or requiring employees to telecommute. As businesses hire new employees those employees are likely to telecommute. Georgia is the first state to specifically extend its job credit program to telecommuters. Businesses in Georgia that have hired employees who telecommute in 2020 or will hire such employees in 2021 should be aware of these new regulations. It is possible that Georgia extends the time period for these credits past 2021 depending on the economic conditions. Businesses should be aware that other states may provide jobs tax credits to businesses hiring remote workers.
Middle market relief for businesses impacted by the coronavirus has been accelerating with states establishing targeted relief programs or proposing on new incentives. Businesses in every industry should consider State tax planning in response to economic distress. Taxpayers with questions about the Georgia jobs tax credit or other available state credits and incentives opportunities should consult a state and local tax specialist for more information.
Call us at +1 213.873.1700, email us at firstname.lastname@example.org or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by Rob Calafell, Rob Modzelewski, Matthew McDowell and originally appeared on 2021-01-08.
2020 RSM US LLP. All rights reserved.
The information contained herein is general in nature and based on authorities that are subject to change. RSM US LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM US LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Vasquez & Company LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Vasquez & Company LLP can assist you, please call +1 213.873.1700.
Subscribe to receive important updates from our Insights and Resources.