Congratulations! Your company just secured a lucrative negotiated incentives package. Your benefits might include tax credits for creating jobs, property tax abatements for new investment and grants for training employees. Your job is done, right? Sorry! The journey has just begun…
The most important part of receiving a negotiated incentives benefits package is the incentive compliance process. Job and investment reporting deadlines come very quickly, and a company can face penalties or cancellation of incentive if deadlines are missed.
Below are 5 important steps to follow when completing tax incentives compliance:
- Assign a company contact person or “Champion”. This key contact person will coordinate all information requests, data gathering and submission.
- Review all contracts and agreements. Ask your legal department to assist. Gather all important basic parameters of the project including job creation and investment goals. Understand the clawbacks of the incentive provisions, or penalties for underperformance.
- Contact the local and state Economic Development Liaison. Be their best friend. Discuss reporting due dates. Keep them apprised of facility updates.
- Understand the usability of the incentives offered. Incentives can be applied to many different kinds of taxes. The incentive might offer you options. Contact your tax department to understand the most advantageous way to apply the incentive.
- Create a reporting calendar. This should include time for data collection, review and signatures. Be aware of income tax filing deadlines.
Equifax Workforce Solutions has a dedicated team of Negotiated Incentive Compliance professionals to assist your company with securing and maintaining valuable incentives. We work with clients as an external “Champion” to ensure compliance requirements are satisfied efficiently and monies are realized.
Register for an upcoming product demo to learn how to identify, secure, and fully realize your organization’s tax credit and incentive potential.
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