No Need to Reinvent the Wheel

Before Congress makes its final decision about jobs creation legislation to tackle unemployment, it needs to consider what has worked in the past. There is no need to reinvent the wheel when it comes to achieving the twin goals of promoting job creation and reducing the number of people receiving public assistance.

The Senate is about to consider a slimmed-down version of the Baucus-Grassley jobs bill. Yet, whether it is Senator Reid's slimmed down version or the all encompassing Baucus-Grassley bill, the problem remains, Congress is failing to consider a program that already exists to tackle unemployment and jobs creation – the Work Opportunity Tax Credit Program (WOTC).

Reid's slimmed down version, presumably making the process simpler and easier for businesses, includes a Social Security payroll tax exemption for those who have been unemployed for 60 days or more based upon certain calculations as well as a $1,000 business credit for unemployed individuals hired by an employer and whose employment meets certain criteria.

A tax credit program whose purpose is to create jobs and uses hours and wages criteria? Sound familiar? It should. The WOTC Program was designed and developed for exactly this purpose. It simply does not make sense to introduce yet another tax credit program oriented towards job creation.

The WOTC Program, along with the Welfare-to-Work Program, which has since been rolled into the WOTC Program, has eligibility and processing requirements which are meant to capture the full benefits of such a program for the economy as a whole – businesses, government, and individuals – while reducing the burden to businesses in doing so. All Congress needs to do to promote job creation, reduce public assistance, and minimize the cost to government is to simply add the unemployed to the target groups qualifying for the WOTC Program – a simple, efficient, and cost effective solution.

Your company has already put in the infrastructure and processes to effectively recapture CASH BENEFITS for your organization via implementation of the WOTC Program. In many cases, the benefits of the Baucus-Grassley bill will cause a reduction in CASH BENEFITS to your company since the implementation of these "required changes" will affect both additional personnel time and IT changes to payroll systems.

Few argue that getting people off of public assistance is a bad idea. However, if done incorrectly it can be ineffective and costly to the taxpayer. The WOTC Program was conceived and has evolved over the years to minimize the pitfalls of job tax credit programs such as those currently being proposed. Congress can avoid the long drawn out debates over how to implement a job creation program effectively for the unemployed with a simple legislative change to the WOTC Program.

So, why not tackle the high unemployment rate by using what already exists and is effective and efficient? Clearly there is a benefit to businesses within the existing WOTC Program. Let's not reinvent the wheel. Do your part! Contact your Congressman and Senator NOW, and tell them that you don't want to pay for more government programs that will impact your company's cash flow. Tell them to use EXISTING PROGRAMS, like WOTC, which the government already has in place, (which you've already spent money to implement and help fight unemployment) and help the US Economy. The WOTC Program achieves the goal of helping to create jobs in targeted areas and reducing labor costs, but not pay checks!

Fred Stiftel, President and Chief Executive Officer
Walton Management Services, Inc.
Ocean, NJ
1-732-531-7117 x16

 

WMS Stands Poised To Assist Businesses In Monitoring Employees Potentially Eligible For New Jobs Tax Credit

On Wednesday, February 24, 2010, the Senate approved H.R. 2847, which includes the "Hiring Incentives to Restore Employment Act" (the Senate jobs bill) by a vote of 70-28 passed. The bill would create a "payroll tax holiday" for new hires hired through the end of the year and a tax credit to encourage companies to retain those workers for a year.

Qualified employees will be those employees hired between February 3, 2010 and January 1, 2011 and who were unemployed for a period of time prior to employment. Businesses qualify for a further $1,000 tax credit if they retain these workers for 52 weeks and given certain wage requirements. Please note that employers pursing these job creation incentives for certain employees will not be able to also pursue the WOTC for those individuals.

Should you have any questions, contact WMS at 1-732-531-7117.

 

PRESS RELEASE
Leaders in Business Tax Credit Consulting Services and Payroll Processing, Join Forces to Offer Comprehensive Solution

Ocean, NJ. -- (October 6, 2009) -- Walton Management Services, Inc., a premier national provider of business tax credit consulting services, and Payroll Professionals llC, a leading payroll services company, announced today that they have formed a strategic alliance.

As an industry leader in payroll processing, Payroll Professionals provides full-featured payroll and tax payment products and services to small, mid-sized and large businesses throughout the United States. With a staff of board-certified professionals, Payroll Professionals delivers comprehensive web-based payroll management services tailored to the individual needs of each client.

"Walton's philosophy is the same as ours, customizing our services to the uniqueness of each client, while providing exceptional customer service," said Mike Steele, Vice President of Sales and Marketing for Payroll Professionals. "This partnership expands Payroll Professionals current portfolio of employer services, ensuring federal, state and local tax credit and incentive compliance, saving our clients time and money," Steele added.

"It is our distinct pleasure to join Payroll Professionals, an industry leader in payroll processing and employee payroll tax filing," said Fred Stiftel. "This relationship offers access to a one-stop source of payroll and benefit administration services, and affords our clients the ease and flexibility of superior payroll management solutions, along with the confidence they are fully compliant," Stiftel added.

About Walton Management Services, Inc.
Walton Management Services, Inc. (WMS), with offices in Ocean, NJ, the Washington, DC metropolitan area, Tampa, FL, Phoenix, AZ, and Ontario, Canada, is an independent national tax consulting firm that secures and administers government credits and incentives for clients, thereby improving their financial performance and reducing their effective tax rate. Serving the Fortune 50 to small and mid-size companies, WMS identifies and administers opportunities including: Work Opportunity Tax Credits, other hiring credits; incentives related to Federal Empowerment Zones, State Enterprise Zones, State Point of Hire Credits, Training Grants, Sales & Use Tax Recoveries, Sellable Tax Credits, and Cost Segregation. The Firm also provides location advisory services and I-9 Employment Verifications. Additional information is available at 1-800-221-0832.

About Payroll Professionals LLC
Payroll Professionals of Tennessee is a comprehensive payroll services provider with locations in Chattanooga, Tennessee and Atlanta, Georgia. With over 50 years industry experience, Payroll Professionals employs board certified payroll professionals and is SAS 70 compliant. In addition to payroll services, Payroll Professionals also provides time and attendance options, human resource information management, accounting reports/ general ledger interfaces, tip credits, employee tax credit evaluation/ processing, and worker's compensation pay-as-you-go system. Additional information about Payroll Professionals can be found at: www.payrollprofessionals.com.

 

LEGISLATIVE ALERT!
WOTC UPDATE AND CLARIFICATION ON CATEGORIES – SEPTEMBER 8, 2009

The Department of Labor and IRS webinar of September 8th, clarifies the statutory definitions and requirements for the two newly expanded WOTC Categories introduced by the American Reinvestment and Recovery Act (ARRA) of 2009.

Unemployed Veteran

•  A member of the Unemployed Veteran Group is an individual who:

      o Has been discharged or released from active duty since 2004
      o Has received UI benefits over the past year (certain time frame required)

Disconnected Youth:

•  Criteria – Ages 16-24 year olds
•  No regular employment during 6 months prior to hiring
•  School and Skills:

      o No GED
      o GED, but not regularly attending school during the 6 month period before hiring
      o Lack of basic skills

Walton will continue to keep our clients apprised of any additional clarifications or developments as they occur.

 

NEW WEBINAR ANNOUNCED FOR OCTOBER 14th

HOW DEEP ARE YOU DIGGING? STRATEGIES TO IDENTIFY AND CAPTURE HIDDEN PROFITS
Cost Segregation, Corporate Real Estate Advisory and Tax Credit Specialists

Ocean, New Jersey, September 21, 2009 - The New Jersey Chapter of Financial Executives International (FEI), Bedford Cost Segregation, Real Estate Strategies Corporation, and Walton Management Services are teaming up to provide a complimentary Webinar to senior corporate executives and CPA's, to discuss three powerful profit enriching strategies that can significantly improve a company's cash flow.

This Webinar, which will offer two CPE credits, begins with a discussion on opportunities available for capturing and re-purposing hidden liquidity by renegotiating leases on various types of occupied corporate real estate. It is followed by a focused talk on the tremendous depreciation and asset management benefits of cost segregation, and closes with planning tactics companies can use to generate cash or credits back into their businesses by pooling from the billions of dollars available in federal, state, and local tax credits and incentives.

Featured speakers include:

Andrew B. Zezas, SIOR, Chief Executive Officer – Real Estate Strategies Corporation
Karen Koch, CPA, MT, Partner – Bedford Cost Segregation
Gary Smith, Vice President – Walton Management Services, Inc.

Join us for this complimentary Webinar event on Wednesday, October 14, 2009, 12:30 PM (ET)
Participants can earn two CPE credits by answering all of the online polling questions.
Register or learn more about at: http://www.bedfordcostseg.com/events/10-14-09.asp

About Real Estate Strategies Corporation
Real Estate Strategies Corporation is a corporate advisory and transaction services firm that provides thought-leadership, decision-making, planning, project management and transaction execution services. RealStrat's efforts are currently focused on uncovering, capturing, and re-purposing hidden liquidity and minimizing risk in its clients' leased and owned real estate. The firm provides counsel as to competitive advantage strategies in preparation for the eventual economic recovery. By restructuring existing leases, disposing of surplus property, structuring sale / leaseback transactions, securing new and replacement financing, and acquiring leased or owned real estate, RealStrat reduces its clients' occupancy costs and risk, and increases their operational flexibility and resiliency. Many of the firm's clients have realized multiple seven figure present value cash benefits through the creative planning and execution of these strategies. Visit www.RealStrat.com.

About Bedford Cost Segregation, LLC
Bedford combines an in-house technical staff of professional engineers, multi-disciplinary engineers, architects, facility experts, and construction professionals with in-house tax specialists to produce high quality cost segregation studies in accordance with IRS guidelines. Bedford has conducted more than 4,500 studies on individual commercial real estate projects covering a wide range of property types and sizes. Bedford clients include individual real estate owners, REITs, franchise organizations, private equity funds, and publicly traded companies throughout the United States. In addition to working directly with real estate owners and tenants, Bedford assists hundreds of regional and national accounting firms in offering this valuable service to their clients. Learn more at www.bedfordcostseg.com.

About Walton Management Services, Inc.
Walton Management Services, Inc. (WMS), with offices in New Jersey, the Washington, DC metropolitan area, Florida, Phoenix, and Ontario, Canada, is an independent national tax incentive consulting firm that secures and administers government credits and incentives for clients, thereby improving their financial performance and reducing their effective tax rate. Serving the Fortune 50 to small and mid-size companies, WMS identifies and administers government incentives opportunities including: Work Opportunity Tax Credits, other hiring credits; incentives related to Federal Empowerment Zones, State Enterprise Zones, State Point of Hire Credits, Training Grants, Sales & Use Tax Recoveries, Sellable Tax Credits, and Cost Segregation. The Firm also provides location advisory services and I-9 Employment Verifications. Additional information is available at www.waltonmanagement.com.

 

Chance to hire Katrina employee and qualify for WOTC will shortly
run out

The last day that certain individuals working in the Hurricane Katrina core disaster area can be hired by an employer to qualify for the work opportunity tax credit (WOTC) is Aug. 28, 2009. This date is fast approaching and delay can mean the lost of a valuable tax credit for an eligible employer.

Background: A Hurricane Katrina employee is treated as a member of a targeted group for purposes of the WOTC. Under §201(b) of the Katrina Emergency Tax Relief Act of 2005 (KETRA), a Hurricane Katrina employee was an individual who on Aug. 28, 2005, had a principal place of abode in the Hurricane Katrina core disaster area, and who was hired during the 2-year period beginning on Aug. 28, 2005 for a position the principal place of employment of which is located in the core disaster area. Under Code Sec. 1400M, the Gulf Opportunity Zone (i.e., the Hurricane Katrina core disaster area) is the area entitled to individual assistance or individual and public assistance from FEMA (Federal Emergency Management Agency) as a result of the President's declaration of a major disaster on account of Hurricane Katrina.

The Emergency Economic Stabilization Act of 2008 extended the 2-year hiring period beginning on Aug. 28, 2005 in KETRA §201(b) to a 4-year hiring period beginning on Aug. 28, 2005, effective for individuals hired after Aug. 28, 2007. (KETRA §201(b), as amended by EESA §319 of Division C)

Thus, as amended by EESA, a Hurricane Katrina employee is any individual who on Aug. 28, 2005 had a principal place of abode in the core disaster area and is either:

(1) Displaced from that abode because of Hurricane Katrina and hired during the period beginning on Aug. 28, 2005 and ending on Dec. 31, 2005; or

(2) Hired during the 4-year period beginning on Aug. 28, 2005 (and ending on Aug. 28, 2009) for a position the principal place of employment of which is located in the core disaster area.

Last chance: Unless an eligible employer hires an otherwise qualified Hurricane Katrina employee by Aug. 28, 2009, the employee (assuming he doesn't qualify for another WOTC targeted group) won't qualify for the Code Sec. 51 WOTC (generally 40% of first-year wages up to $6,000, i.e., a maximum credit of $2,400 (.4 × $6,000).

RIA Research References: For the WOTC, see FTC 2d/FIN ¶ L-17775; United States Tax Reporter ¶ 514; TaxDesk ¶ 380,700.
Source: Federal Tax Updates on Checkpoint Newsstand tab 8/21/09

 

Legislative Alert!

The IRS has extended the filing period for the disconnected youth WOTC target group from August 17, 2009 to September 17, 2009. The newest Notice from the IRS, Notice 2009-69, provides that any employer who hires an unemployed veteran or disconnected youth between December 31, 2008, and September 17, 2009 will be considered to have satisfied the required 28-day WOTC filing deadline if the employer submits the pre-screening notice to the designated local agency to request certification no later than Oct. 17, 2009. Notice 2009-69 also clarifies the definition of a disconnected youth, providing greater guidance as to eligibility requirements.

The Work Opportunity Tax Credit is available to employers hiring individuals from one or more targeted groups before September 2011. The tax credit is a percentage of qualifying wages from $2,400 to $9,000, depending on the targeted group and length of employment.

 

Stimulating Your Business, Not Just the Economy
By Fred Stiftel

What do you get for $787 Billion? No one is certain yet as the economic stimulus bill, passed into law in February, starts to take shape state by state. However, what is certain is that there are already programs in place that can stimulate your business and help it survive these difficult economic times.

A good place to start is the federal Work Opportunity Tax Credit (WOTC), a program available to all private sector businesses that provides incentives to employers who hire workers from groups with high rates of unemployment (“target groups”). This Program has been around for 30 years in various forms and has done much to stimulate affordable job creation for businesses.

The WOTC can bring in a much-needed supply of tax credits to companies that make the effort to seek out new hires. For workers hired prior to September 1, 2011, WOTC provides as much as: $2,400 for each new adult worker; $1,200 for each new summer youth worker; $4,800 for each new disabled veteran; and $9,000 for each new long-term family assistance recipient. Businesses not taking advantage of this effective incentive are missing an easy way to reduce their costs.

WOTC also is a tool for job seekers in these target groups to help them obtain employment that in turn can give them the skills and experience for better job opportunities – there is your economic stimulus. This program provides hiring incentives for nine categories of workers including veterans, those on long term public assistance, and some who have been receiving Supplemental Security Income (SSI).

Two additions to the WOTC Program target groups in the economic stimulus bill included: incentives to hire unemployed veterans and disconnected youths. Another new category that should be considered for the WOTC Program that could provide immediate economic improvement would be the addition of individuals who have lost jobs and now receive unemployment insurance compensation. By making this a category within the existing WOTC program, businesses will have an incentive to hire, and these newly hired individuals will come off of the “unemployment dole,” receive a paycheck and pay taxes. A few states are currently considering passage of exactly this type of legislation offering tax credits to companies for getting individuals off of unemployment.

WOTC is only one of the many existing incentives available to businesses that could assist them with surviving these tumultuous economic times. Other incentives (tax credits and grants) targeting the creation and retention of jobs, training, capital and R&D investments, sales taxes, and cost recovery can help struggling businesses regain their balance.

It is true that there are numerous regulations that must be adhered to qualify for these programs, but for the business that has not previously explored such programs, help is available through companies that specialize in government incentive applications.

While government officials work to find new ways to stimulate future job growth we should not ignore those programs that can put people to work immediately.

Fred Stiftel is President and Chief Executive Office of Walton Management Services, Inc., Ocean, NJ, a company that specializes in obtaining tax credits and incentives for corporations nationwide.

 

MODELL'S COMMITMENT TO COMMUNITY SPURS JOB CREATION AND INVESTMENT IN HARLEM

Harlem, New York, July 6, 2009 -- Modell's, the oldest sporting goods store in North America, has stimulated job creation and investment to the local community with its presence at 125thStreet, New York. With a strong New York history, Modell's opened its first store on Cortland Street in lower Manhattan. Founded in 1889 by Morris A. Modell, Modell's continues its commitment to New York by supplying jobs to local Empowerment Zone residents in Harlem.

"Modell's has deep roots in New York, and it's our commitment to not only design the store to the community, but to also create value to the area by supplying jobs to local residents, through successful Federal programs such as the Work Opportunity Tax Credit Program and the Federal Empowerment Zone Program," said Tom Tilley, Senior Vice President of Modell's. Tilley added, "Modell's has utilized the services of Walton Management Services for the past six years in processing the Work Opportunity Tax Credit Program and Empowerment Zone employment credits for Modell's, and we would not have been able to achieve the results we have on these programs without their expertise."

"This store presence has allowed Walton to put its best practices into action for Modell's," said Gary Smith, Vice President of Walton Management Services, a national tax credit and incentive firm based in New Jersey. "With a focus on job creation and promotion of investment in local communities, it's government incentive programs such as the Federal Work Opportunity Tax Credit Program and the Federal Empowerment Zone Program that enable a collaborative win-win partnership for Modell's, the local community, and the state and city officials of New York", Smith added.

Currently Modell's operates 144 stores mainly in New York, New Jersey, and Pennsylvania. In recent years, Modell's has begun to expand to Delaware, Maryland, Virginia, and the District of Columbia as well as Connecticut, Massachusetts, New Hampshire, and Rhode Island.

About Modell's Sporting Goods:

Modell's Sporting Goods is the nation's oldest, family-owned and operated, retailer of sporting goods, sporting apparel, menswear and brand name athletic footwear. Under the name of Modell's Sporting Goods, Henry Modell & Company, Inc. and its affiliates, the company operates 144 stores throughout New York, New Jersey, Pennsylvania, Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, and Virginia, Rhode Island, and the District of Columbia. Modell's, founded in 1889 by Morris A. Modell, had its first store located on Cortland Street in lower Manhattan. Four generations of the Modell family have developed the family business into a chain of stores located in the northeast.

About Walton Management Services, Inc.:

Walton Management Services, Inc. (WMS), with offices in Ocean, NJ, the Washington, DC metropolitan area, Tampa, FL, Phoenix, AZ, and Ontario, Canada, is an independent national tax consulting firm that secures and administers government credits and incentives for clients, thereby improving their financial performance and reducing their effective tax rate. Serving the Fortune 50 to small and mid-size companies, WMS identifies and administers opportunities including: Work Opportunity Tax Credits, other hiring credits; incentives related to Federal Empowerment Zones, State Enterprise Zones, State Point of Hire Credits, Training Grants, Sales & Use Tax Recoveries, Sellable Tax Credits, and Cost Segregation. The Firm also provides location advisory services and I-9 Employment Verifications.

 

For Corporate Tax Credits and Incentives: National Specialist Opens In Florida

TAMPA BAY, FL, Feb. 25, 2009 – Corporations in the Southeast will now have new opportunities to obtain government tax credits and incentives.

Walton Management Services, Inc., which has assisted corporations in obtaining and managing government tax credits and incentives for three decades, today announced that it is expanding its operations in the Southeast with a new office in St. Petersburg, Florida.

“Every year, we net our clients millions of dollars by managing their tax incentive portfolios,” said Fred Stiftel, the company’s President and Chief Executive Officer. “We find that many companies are entitled to significant incentives or credits but never apply for them, either because they don’t know the funds are available or they don’t have the in-house resources to apply.”

“Walton Management Services will identify, secure and administer a wide range of tax credits and incentives for companies of all sizes and in all industry sectors, from Fortune 50 corporations to promising new ventures,” Stiftel added.

“Companies are finding that it is more and more important to take advantage of every tax credit and incentive available,” Stiftel said. “This has resulted in a significant increase in demand for our services. The Florida location seemed the perfect place to add a new office to be better able to serve the Southeast.”

Walton Management Services recently added four new service lines to its portfolio: I-9 employment verification, Canadian tax recoveries, sellable tax credits and cost segregation services.

“With the addition of these new services we expect significant additional growth, further requiring us to expand beyond our current locations in New Jersey and the Washington, D.C. Metro area,” Stiftel said.

Brian DeVido, Senior Business Development Manager, will spearhead the new office at 2023 1st Ave., North, St. Petersburg, Fla. 33713. With more than 10 years experience, DeVido will help clients analyze and grow their financial incentives portfolios. In addition to his experience at Walton Management Services, where he has managed client services and business development, DeVido has recruitment, staffing and sales management experience serving Fortune 50 companies in industry sectors ranging from logistics to technology and financial services.

About Walton Management Services, Inc.

Walton Management Services, Inc. (WMS), with offices in Ocean, N.J., and Silver Spring, MD, is an independent national tax consulting firm that secures and administers government credits and incentives for clients, thereby improving their financial performance and reducing their effective tax rate. Serving the Fortune 50 to mid size companies, WMS identifies opportunities including: Work Opportunity Tax Credits, other hiring credits; incentives related to Federal Empowerment Zones, State Enterprise Zones, State Point of Hire Credits, Training Grants, Sales & Use Tax Recoveries, Sellable Tax Credits, and Cost Segregation. The firm provides location advisory services and I-9 Employment Verifications. Additional information is available by phone at 1-800-221-0832.

Federal Contractors!

If you are a FEDERAL CONTRACTOR with a newly awarded scope of work within the United States and you have a contract start date after January 15, 2009 that extends past June 15, 2009, there are new compliance exemptions and criteria markers. These include, but are not limited to, enrolling in E-Verify within 90 days of the contract award date (Walton I-9 Verify Plus TM is an approved E-Verify vendor) and using E-Verify to confirm the work eligibility of all new hires within 30 days of being awarded the job. Additionally, those employees assigned to federal contracts and those newly hired employees are required to be processed through E-Verify within 3 days of their start date. Note that there are numerous exemptions and caveats, so please call 1-800-264-6159 or email waltoni-9@waltonmanagement.com for more information on E-Verify and the Walton I-9 Verify Plus™ solution.

Legislative Alert!

Companies with Locations In Lousiana, Mississippi and Alabama, call WMS Today to ensure your Gulf Opportunity Zone and Hurricane Katrina Tax Credits are captured...

1-800-221-0832 x16

October 7, 2008 - WORK OPPORTUNITY TAX CREDIT FOR HURRICANE KATRINA EMPLOYEES AND GO ZONE REHABILITATION CREDIT EXTENDED THROUGH 2009

President Bush has signed into law the Emergency Economic Stabilization Act of 2008.
Following approval by the Senate earlier this week, the U.S. House of Representatives approved the legislation, designed to stabilize the U.S. economy and financial markets. The bill includes an extension of the Work Opportunity Tax Credit for Hurricane Katrina employees, and an extension of the rehabilitation credit for structures in the Gulf Opportunity Zone through 2009.

Other provisions extended through 2009 include:

•  New Markets Tax Credit
•  Indian Employment Credit Tax
•  Incentives for investments in the District of Columbia
•  R&D Credits
•  Renewable Energy Credits
•  Special expensing rules for certain film and television productions

Additionally, a one year patch for AMT was also included in the bill. The bill provides up to $700 billion for financial rescue efforts, and also includes an increase in the FDIC deposit insurance limit to $250,000.

Walton Management Services & ERC Dataplus Announce Strategic Alliance

LEADERS IN HIRING TAX CREDIT CONSULTING SERVICES AND RECRUITING SOFTWARE SOLUTIONS JOIN FORCES TO OFFER COMPREHENSIVE APPLICANT HIRING SOLUTION

Ocean, NJ.-- (May 15, 2008)-- Walton Management Services, Inc., a leading provider of hiring tax credit incentive services, and ERC Dataplus, Inc., a leading human resource technology company, announced today that they have formed a strategic product development and marketing alliance.

The alliance between ERC Dataplus and Walton Management Services offers customers a comprehensive applicant hiring solution, allowing employers to integrate a state of the art applicant qualification and tracking system with new hire tax credit screening. This integration not only maximizes the opportunity for selecting the better candidate, but also ensures all new hiring tax credits are captured through the Work Opportunity Tax Credit (WOTC) and Long-Term Family Assistance (LTFA) programs, while not incurring any additional cost for the integration.

Walton Management President Fred Stiftel said, “The alliance between Walton Management and ERC offers a powerful employer solution. Integrating best practices of both firms into the hiring process offers our customers the ability to achieve the greatest staffing efficiencies through an automated recruiting and selection process that pays for itself with tax incentives. Coupling our nearly thirty years of tax incentive experience with ERC's Selectech® Workforce Management System allows us to offer clients an end-to-end solution.”

"The diverse group of clients served by ERC and Walton Management covers large employers, particularly in the hospitality, retail, manufacturing, distribution, transportation and financial services sectors. This alliance will expand the reach of both companies," commented Paul Rathblott, CEO of ERC. He added, "We constantly search for opportunities to enhance our products and services in order to deliver the best solutions to our clients. Designating Walton Management as our Preferred Tax Incentive Partner allows us to deliver the most complete recruiting and selection tools available today, something that our clients have come to expect from ERC."

About Walton Management Services, Inc.
Walton Management Services, Inc. (WMS) secures and manages valuable government incentives for clients nationwide, thereby improving their financial performance and reducing their effective tax rate. Serving Fortune 50 companies to promising new ventures, Walton’s comprehensive financial incentive analysis identifies and administers opportunities including: WOTC and other Federal Hiring Credits, Federal Empowerment Zones/Renewal Communities, State Enterprise Zones, Sales Tax Reductions, Exemptions and Refunds, State Point of Hire Credits, Jobs Tax Credits, Job Training Credits, and Site Location Services. To learn more about Walton Management, call 1-800-221-0832 x39.

About ERC Dataplus
ERC Dataplus delivers Web-based HR management solutions that help private and public sector organizations improve their hiring processes and results. Since 1993, ERC has enabled leading financial service firms, call centers, retailers, hospitality organizations and Fortune 2000 companies to automate and enhance their employee recruitment, selection, development and retention. ERC’s comprehensive solutions help manage the entire hiring process from applicant pre-qualification, assessment and interview coordination through on-boarding. To learn more about ERC and its portfolio of cost effective staffing solutions, visit www.ercdataplus.com or call 1-888-ERC-CORP (372-2677).


WOTC/WtW RENEWED THROUGH AUGUST 31, 2011

President Bush signed H.R. 2206 (U.S. Troops Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2) on May 25, 2007, extending the Work Opportunity Tax Credit ("WOTC") through August 31, 2011. The legislation also expands eligibility for the WOTC tax credit, including extending the maximum age for designated community residents to 40, adding disabled veterans to the targeted groups, and increasing the amount of wages taken into account for disabled veterans from $6,000 in wages to $12,000 in wages. This legislation adds to the already significant changes to the WOTC Program following the passage of H.R. 6111 on December 20, 2006, which expanded eligiblity for the WOTC tax credit, including extending the maximum age for food stamp recipients from 25 to 40 and removing the family income requirement for ex-felons; combining the WOTC and WtW programs; and increasing the percentage of tax credit allowed under WOTC from 35 to 40 percent for the first year. The increased percentage for the tax credit translates into greater savings for companies as employers can now claim a tax credit for both WOTC and WtW of 40 percent for an eligible employee's first year of employment (for up to $6,000 in wages under WOTC and up to $10,000 in wages for WtW).


Walton Management Services Announces Applicant Tracking Partnership with Cytvia

VANCOUVER, BC – September 22, 2006 – Cytiva Software Inc. (CRX: TSX:V), a leading provider of mid-market talent acquisition solutions, and Walton Management Services, Inc. (WMS), a leading business financial incentives services firm, providing incentives screening services, announced today the availability of a strategic relationship allowing SonicRecruit clients to take advantage of the Work Opportunity Tax Credit (WOTC) and Welfare to Work (WtW) tax credit programs and capital expenditure, workforce, and location-based incentive programs.

The announcement further strengthens Cytiva’s SonicEntree hourly hiring system by providing an integrated method of identifying new hires that qualify for special tax credits from the state and federal governments. Now, as part of the application process, SonicRecruit can track applicant information that is used to screen for WOTC and WtW eligibility and automatically provide that information to WMS to quickly identify applicants who may qualify for the credit. Under the WOTC and WtW programs, employers receive between $2,400 and $8,500 in tax credits per eligible employee (welfare, food stamp, rehabilitation recipients, etc., are eligible).

“Identifying WOTC eligible employees is a huge task for large companies, and a large percentage of potential credits simply go unclaimed” said Jason Moreau, CEO of Cytiva. “This new relationship allows SonicRecruit’s hourly clients to quickly and easily claim this and other credits, saving them thousands, even hundreds of thousands of dollars annually.”

Cytiva’s SonicEntree represents a strong hourly hiring solution for the hospitality, manufacturing and retail industries where the potential for WOTC credits is highest.

"It is our distinct pleasure to join industry leader Cytiva to offer the full range of employee-related services," said Walton Management Services CEO Fred Stiftel. "Our integration with the SonicRecruit and SonicEntree products enables Walton to combine our outstanding talent and specialized expertise in the financial incentive industry with the appropriate application of applicant tracking technologies to maximize savings and reduce operational and employment-related costs for our clients.”

With the Walton Management Services agreement, SonicRecruit’s stable of integrated third party services represents one of the most complete offerings in the industry for mid-sized organizations. WOTC eligibility screening joins the SonicRecruit menu as one of many resources available to SonicRecruit clients, including background checking, pre-employment assessment, resume processing, EEOC compliance services, and candidate sourcing.

About Cytiva Software Inc.
Cytiva Software Inc. (CRX:TSX-V) provides innovative recruiting products and services to mid sized and Fortune 500 companies. With its flagship product, SonicRecruit, corporations can automate their recruiting efforts and customize their corporate career sites. SonicRecruit, a premier talent acquisition system, improves recruiting effectiveness, speeding up the hiring process and reducing cost per hire.


Walton Management Services, Inc. and Barnett Associates Form Strategic Partnership to Provide Tax Credit and Unemployment Consulting.

Barnett Associates, the premier unemployment consulting firm in the United States and Walton Management Services, Inc., a leading business financial incentives services firm, announced today that they have formed a strategic alliance to provide an integrated unemployment and incentives screening services offering to employers.

Barnett Associates specializes in the areas of SUI tax management, claims administration, and employment verification.  As an industry leader in identifying legitimate unemployment tax saving opportunities across the United States, Barnett provides clients with superior services and accurate, timely information concerning their unemployment taxes, claims and job verifications.  Barnett's "UI Practice" analyzes all facets of employment and its financial effect on the bottom-line tax cost. SUTA Dumping legislation and Sarbanes Oxley have created a challenging environment for companies to correctly report SUI taxes.  Barnett ensures that each client meets the highest compliance standards, while minimizing their UI tax cost liability.  Walton helps employers create and manage portfolios of business incentives that reduce costs through obtaining tax credits, grants, and profit recovery opportunities under Work Opportunity Tax Credits (WOTC); Welfare to Work (WtW); and capital expenditure, workforce, and location-based incentive programs.  Integrating these service offerings will enable employers to take advantage of the full range of employment and unemployment cost controls, savings, and offsets available to businesses.

Barnett, founded in 1983 by Paul Barnett, is headquartered in Garden City, NY. Walton, founded in 1982 by CEO Fred Stiftel, is headquartered in New Jersey, with offices in Maryland, Florida, and California.

Having known Fred Stiftel, President of Walton Management for over 28 years, Paul Barnett, President of Barnett Associates is excited about this partnership. “Walton’s philosophy is the same as ours, customizing to individual client needs, considering their practices, consulting on and securing all possible savings, and most importantly serving with true dedication. In a climate which is compliance driven, this partnership expands Barnett’s current portfolio of employer services, ensuring federal, state and jurisdictional compliance, while continuing to save time & money for their clients.

“It is our distinct pleasure to join industry leader Barnett Associates to offer the full range of employee-related services and cost savings,” said Stiftel. “Now our customers will be able to maximize both their employment and unemployment savings and reduce their operational and employment-related costs to improve financial performance. This relationship brings together key components in the employee lifecycle. Barnett's proven leadership in unemployment cost control services will enable our clients to have access to a one-stop source of workforce tax management.”

About Barnett Associates

Since 1983, Barnett Associates has been widely recognized as one of the premier Unemployment Consulting firms in the country, serving many of the Fortune 500 in the areas of: SUI Tax Management, Claims Administration and Employment Verification. Barnett is the industry leader in identifying legitimate unemployment tax saving opportunities across the United States. Their “UI Practice” analyzes all facets of employment and its financial impact on the bottom-line tax cost. SUTA Dumping legislation and Sarbanes Oxley have created a challenging environment for companies to correctly report SUI taxes. Barnett ensures each client meets the highest compliance standards, while minimizing their UI tax cost liability. Barnett's website can be viewed at http://www.barnettassociates.com or call (516) 877-2860 for more information.


Hurricane-Related Tax Credits Expanded

Bush recently signed into law the "Gulf Opportunity (GO) Zone Credits". Along with the previously announced "Hurricane Katrina Emergency Relieve Act" (KETRA), these credits target businesses affected and rendered inoperable by Hurricanes Katrina, Rita, and Wilma. The updated legislation allows an employer to take an Employee Retention Tax Credit on ANY employee who remained on the payroll for the period the business was rendered inoperable as a result of the damage caused by Hurricane Katrina, Rita, or Wilma. The Credit can be taken on wages paid to employees while the store or location was closed and/or damaged during the period of August 28, 2005 through December 31, 2005. All Credits are based upon wages paid to an employee while the employee was not working as well as on employee's wages if the employee remained on the payroll but was transferred at a later date. The credit is 40 percent of the first $6,000 in wages paid to each eligible employee after August 28, 2005, and before January 1, 2006, by employers in the designated core disaster area, for the period the business is rendered inoperable as a result of damage caused by Hurricane Katrina. The reference dates for employers affected by Hurricane Rita and Hurricane Wilma, comparable to the August 28, 2005 date for employers affected by Hurricane Katrina, are September 23, 2005, and October 23, 2005, respectively.


California Grants Conditional Designation to 15 Year Enterprise Zones

California has given the conditional designation of 23 new 15-year enterprise zones. Most of the existing zones with impending expiration dates were also given conditional re-designation. Businesses located in enterprise zones are eligible for state tax reductions, abatements, and exceptions and other incentives aimed at encouraging worker hiring and stimulating economic development in distressed areas. The 23 zones must still complete some work, including an environmental impact report that will result in final approval sometime in October 2007. The newly designated zones will not be in use until the end of the year.


Katrina Tax Credits - WMS Seeks Employment Relief for Businesses

Congress recently passed a new law that creates many tax code changes to benefit Hurricane Katrina victims. The Katrina Emergency Tax Relief Act of 2005 applies to people and businesses affected by Hurricane Katrina and to those taxpayers helping victims of the disaster. The Internal Revenue Service currently is developing the taxpayer guidance required to implement the new law and WMS is ready to assist businesses with these guidelines.

Work Opportunity Tax Credit For Hurricane Katrina Employees - Ask WMS...

One specific area of relief is to employers hiring those affected by Hurricane Katrina based upon the Work Opportunity Tax Credit Program (WOTC). Typically, the Work Opportunity Tax Credit is available on an elective basis for employers hiring individuals from one or more of eight targeted groups. The provision of the Katrina Emergency Tax Relief Act of 2005 provides that a Hurricane Katrina employee is treated as a member of a targeted group for purposes of the WOTC, making it a ninth targeted group.

A Hurricane Katrina employee is: (1) an individual who on August 28, 2005, had a principal place of abode in the core disaster area and is hired during the two-year period beginning on such date for a position, the principal place of employment of which is located in the core disaster area; and (2) an individual who on August 28, 2005, had a principal place of abode in the core disaster area, who was displaced from such abode by reason of Hurricane Katrina and is hired during the period beginning on such date and ending on December 31, 2005 without regard to whether the new principal place of employment is in the core disaster area.

Furthermore, the standard WOTC certification requirement is waived for such individuals fitting the new Hurricane Katrina targeted group. In lieu of the certification requirement, an individual may provide to the employer reasonable evidence that the individual is a Hurricane Katrina employee. Ask your Walton Management Services, Inc. account representative to provide you with a form in order to document these new hires. Additionally, other standard WOTC requirements have been waived such as the denial of the credit with respect to wages of employees who had been previously employed by the employer, unless such employee was an employee of the employer on August 28, 2005, and and the 21-day expiration.

WMS assists companies with Employee Retention Credit for Employers Affected by Hurricane Katrina

An employer may be eligible for a credit of 40 percent of qualified wages (up to a maximum of $6000 in qualified wages per employee) paid to eligible employees, for which a credit has not already been taken under WOTC.

An eligible employer is any employer (1) that conducted an active trade or business on August 28, 2005, in the core disaster area and (2) with respect to which the trade or business described in (1) is inoperable on any day after August 28, 2005, and before January 1, 2006, as a result of damage sustained by reason of Hurricane Katrina. An eligible employer shall not include any trade or business for any taxable year if such trade or business employed an average of more than 200 employees on business days during the taxable year. The credit not allowed for large businesses; that is any business which employed an average of more than 200 employees on business days during the taxable year. An eligible employee is, with respect to an eligible employer, an employee whose principal place of employment on August 28, 2005, with such eligible employer was in a core disaster area. An employee may not be treated as an eligible employee for any period with respect to an employer if such employer is allowed a credit under section 51 with respect to the employee for the period.

Qualified wages are wages paid or incurred by an eligible employer with respect to an eligible employee on any day after August 28, 2005, and before January 1, 2006, during the period (1) beginning on the date on which the trade or business first became inoperable at the principal place of employment of the employee immediately before Hurricane Katrina, and (2) ending on the date on which such trade or business has resumed significant operations at such principal place of employment. Qualified wages include wages paid without regard to whether the employee performs no services, performs services at a different place of employment than such principal place of employment, or performs services at such principal place of employment before significant operations have resumed.

The credit is a part of the current year business credit under section 38(b) and therefore is subject to the tax liability limitations of section 38(c). Rules similar to sections 280C(a), 51(i)(1) and 52 apply to the credit.

CHARITABLE GIVING INCENTIVES - Temporary Suspension of Limitations on Charitable Contributions

In the case of a corporation, the deduction for qualified contributions is allowed up to the amount by which the corporation’s taxable income (as computed under section 170(b)(2)) exceeds the deduction for other charitable contributions. Contributions in excess of this amount are carried over to succeeding taxable years, subject to the limitations of section 170(d)(2).

Qualified contributions are cash contributions made during the period beginning on August 28, 2005, and ending on December 31, 2005, to a charitable organization described in section 170(b)(1)(A) (other than a supporting organization described in section 509(a)(3)). Contributions of noncash property, such as securities, are not qualified contributions. Under the provision, qualified contributions must be to an organization described in section 170(b)(1)(A); thus, contributions to, for example, a charitable remainder trust generally are not qualified contributions, unless the charitable remainder interest is paid in cash to an eligible charity during the applicable time period. In the case of a corporation, qualified contributions must be for relief efforts related to Hurricane Katrina. Corporate taxpayers must substantiate that the contribution is made for this purpose. A taxpayer must elect to have the contributions treated as qualified contributions.

 

Enhance Your Company's Bottom Line with Government Incentives

Federal, state, and local governments offer an array of lucrative tax incentives for one purpose: to stimulate economic growth. Government incentives have become a widespread means for economic developers to lure businesses to their state. Although these statutory and discretionary tax incentives have been around for many decades, many corporations still do not fully understand their value and importance in this globally competitive economy. Simply put, companies regardless of size have an opportunity to draw from the billions of dollars available annually from government agencies to reduce their operating costs.

Government Incentives are available for companies based on their geographic location, industry, number of employees and daily business activities. The benefits of these government incentives are immense. Government incentives can reduce a company's capital costs and operating expenses, reduce its federal and state tax liability, and, most importantly, can be captured retroactively as well as going forward.

Businesses likely to qualify are those companies that are expanding, relocating, or upgrading facilities; experiencing closures, consolidations, or changes in production or processes; and training or retraining their new and existing workforce. Opportunities are also available for increases or decreases in employment, job relocations, and employees going from contract to permanent status.

Over $60B in government incentives are awarded annually. For example, Hormel Foods Corporation, a major food products manufacturer, received incentives worth more than $1.2 million ($690,000 in corporate income tax credits over 10 years, $500,000 grant, and $50,000 workforce training grant) from the Illinois Department of Commerce and Economic Opportunity to help it expand its production facility and create more than 100 new jobs in Illinois. These incentives were part of the Illinois governments regional economic development strategy designed to spur growth and create jobs¹. Some of the most common types of incentives include:

Hiring credits - Federal and state government incentives offered to employers, depending on where they do business and their employee demographics. Federal hiring credits include the Work Opportunity Tax Credit Program and Long-Term Family Assistance Program with awards of up to $9000 per qualified employee. Also available are Federal Empowerment Zone (FEZ) and Renewal Community (R/C) Tax Credit Programs, allowing a credit of up to $3000 per eligible employee for employers hiring individuals who live and work in geographically designated urban and rural areas.

State Specific Point of Hire (POH) Tax Credits such as California's new hire credit of up to $37,440 per eligible employee for the life of the program, the Louisiana Enterprise Zone Tax Credit Program of $2500 for each new hire in specific designated areas, and the New Jersey Urban Enterprise Zone Tax Credit Program with a benefit of up to $1500 for each net new job created. These types of incentives are common throughout the United States.

Investment Tax Credits - Tax credits offered by states to corporations that invest in long term assets such as machinery and equipment.

Sales and Use Tax Refunds, Credits & Exemptions - Many states offer Sales and Use Tax Credits, refunds and exemptions based on certain qualified purchases. For example, in addition to the sales and use credits available for locating in economic zones, states provide the opportunity to receive sales and use tax discounts, exemptions and refunds on certain purchases such as Missouri's exemptions from state and local sales and use taxes of purchases of certain energies, gases, utilities, and chemicals used in manufacturing or processing.

Property Tax Abatements - Exemptions and abatements from taxation on property, both real and personal and are offered in most states in certain designated geographic zones.

Customized Training Grants – In order to maintain and grow their talent capital, all 50 states offer some sort of training grant opportunities for training new or incumbent workers. These opportunities include: income tax credits and wage subsidies of up to 100% of training expenses or 50% of wages for an employer hiring qualified individuals, while providing job training.

Sellable Tax Credits - For companies in Net Operating Losses (NOL's) or for companies that have an unused tax credit inventory, states offer the ability to sell unused tax credits and NOL's for cash.

Research and Development Tax Credits – Federal and State government agencies offer a wide variety of benefits to companies in many industry sectors that conduct research and development activity. An example is Pennsylvania that offers a 10% credit on the amount of qualified expenses.

Negotiated Incentives - The level of government incentives that are available in the United States is at an all time high. There are bidding wars continually going on between states, each with the quest to land the big deal. The newspapers are inundated with articles detailing the millions of dollars companies have received through incentives.

Many point to the $1 billion investment by Hemlock Semiconductor Corp. to expand its operations in Michigan as a classic example of how incentives have played a major role in stimulating economic growth and transitioning Michigan's business environment towards a new high-tech environment. This investment included "…a state tax credit valued at $8.1 million over 15 years in addition to job-training assistance through the Economic Development Job Training program…The $1 billion project is expected to create 589 new jobs, including 270 directly by the company."²

Take another example, Utah's approval of an income and sales tax incentive to IM Flash Technologies Inc., a joint venture of Micron Technology Inc. and Intel Corp., which produces NAND memory chips. IM Flash received a tax rebate up to 30 percent of state sales and income taxes paid over a five-year period for its creation of 1,850 new jobs over that same period. Two years later, IM Flash continues to grow.

These are only a couple of examples how incentive procurement can be a key component in remaining competitive in a rapidly changing global economy. Corporations that fail to properly address this issue will be at a marked disadvantage. Cleary, government incentives will drive the course of our economic climate for many years to come.


Submitted by:

Dr. Dawn Vignola Vice President Walton Management Services, inc.

Donna Mason Director of Marketing Walton Management Services, inc.