FAQ
What is TaxAdvantage and how can it save me money?
First Capitol's TaxAdvantage is a tax service and software platform that helps business owners reduce their tax liability. Employers can save from $1,500 to $37,000 for each of their employees who qualify for any of the state and federal tax programs we service.
Why haven't I heard of CAEZ, WOTC or any of the other tax credit programs before?
Chances are, you have actually heard about the programs but because of their specialized nature and convoluted language, did not consider or were not able to implement them for your business. For example, the Federal government just expanded the WOTC as part of its economic recovery program, but unless you read the fine print, you wouldn’t know.
The CAEZ has been in existence since 1984. In addition to its specialized nature, there is generally low awareness about the program because eligible areas have changed over time and the government has not done a good job keeping business owners apprised of all the changes.
As for the WOTC, most CPAs and accountants lack resources to such programs or communicate their potential to their clients because of the immense work involved.
The CAEZ has been in existence since 1984. In addition to its specialized nature, there is generally low awareness about the program because eligible areas have changed over time and the government has not done a good job keeping business owners apprised of all the changes.
As for the WOTC, most CPAs and accountants lack resources to such programs or communicate their potential to their clients because of the immense work involved.
How much will it cost me?
FCCI works on a contingency fee so there are no upfront costs. We will
invoice you when and if tax credits have been generated for your
company.
What is a tax deduction, a tax credit and a tax refund?
A tax credit differs from a tax deduction. A tax deduction lowers the amount of income subject to taxation. A tax credit, however, lowers the amount of tax owed directly.
Credits result in a dollar-for-dollar reduction in actual tax liability, which makes them much more valuable than deductions. A tax refund is what you receive when you’ve already paid too much tax and the government returns the amount that you’ve overpaid.
Credits result in a dollar-for-dollar reduction in actual tax liability, which makes them much more valuable than deductions. A tax refund is what you receive when you’ve already paid too much tax and the government returns the amount that you’ve overpaid.
Doesn't my CPA/accountant already implement CAEZ and WOTC savings for me? Why not?
Working with tax incentive programs such as CAEZ and WOTC is a specialized niche within accounting requiring subject-area expertise. Not only that, the CAEZ has geographic constraints to eligibility and most clients of accounting firms do not qualify for the program. Therefore, it is not profitable for general accounting firms to learn the large volumes of material necessary to implement these programs for their clients.
WOTC, unlike the CAEZ, does not have geographic constraints. However, for each qualifying employee, there is only a window of 28 days within which to satisfy the myriad requirements and submit all necessary documents to the IRS. Properly implementing the WOTC requires constant attention and maintenance. General accounting firms do not have the resources necessary to constantly monitor the entire process.
WOTC, unlike the CAEZ, does not have geographic constraints. However, for each qualifying employee, there is only a window of 28 days within which to satisfy the myriad requirements and submit all necessary documents to the IRS. Properly implementing the WOTC requires constant attention and maintenance. General accounting firms do not have the resources necessary to constantly monitor the entire process.
How does it benefit me?
If your business is an S-Corporation, LLC, partnership or sole proprietorship, then you personally may be entitled to tax refunds and future tax savings through these programs. C-Corporations can have their business taxes reduced and refunded.
Is CAEZ and WOTC legitimate programs? Why is the government giving away money?
The California state government created the CAEZ to create job opportunities and
encourage business development by giving qualified businesses tax
breaks. It is in the interest of California to implement this program
because it helps with business retention and allows for faster business
growth leading, in the long run, to greater tax revenue. The program is
mandated in Sections 7070-7089 of the California Government Code, and is
overseen by the Franchise Tax Board and relevant municipal agencies.
The Federal government created the WOTC program to encourage workforce development and encourage the hiring of individuals who face barriers to employment. It was originally mandated in 1996 under Public Law 104-188, and was most recently revised by President Bush's Small Business and Work Opportunity Tax Act of 2007 (P.L. 110-28) and President Obama's American Recovery and Reinvestment Act (P.L. 111-005) in 2009. It is administered by the Internal Revenue Service and various designated local agencies.
The Federal government created the WOTC program to encourage workforce development and encourage the hiring of individuals who face barriers to employment. It was originally mandated in 1996 under Public Law 104-188, and was most recently revised by President Bush's Small Business and Work Opportunity Tax Act of 2007 (P.L. 110-28) and President Obama's American Recovery and Reinvestment Act (P.L. 111-005) in 2009. It is administered by the Internal Revenue Service and various designated local agencies.
How long will it take before I save money?
Federal income tax credits will be provided to you quarterly and state income tax credits will be provided to you annually for submission with your tax returns. These credits are used to reduce or eliminate your tax liability. Any unused credits can be used in the future.
In some cases, you may be eligible to receive a refund on taxes already paid. In such cases, you will receive a refund check, plus interest, in the mail 3-6 months after you submit all required paperwork.
In some cases, you may be eligible to receive a refund on taxes already paid. In such cases, you will receive a refund check, plus interest, in the mail 3-6 months after you submit all required paperwork.
