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The Complete Payroll Blog

What tax incentives are available to New York employers?

Posted by Complete Payroll | Mar 22, 2018 7:00:00 AM

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New York offers millions of dollars in tax incentives for employers. An individual employer might qualify for multiple incentives worth $2,000 to $20,000 each. These tax benefits are designed to help people who have faced barriers to employment, like veterans, low income earners, and workers with disabilities. They also boost long-term employer investment in New York commerce.

Explore the incentives on the list below to improve your financial outlook for the tax year. Here’s a look at the current incentives available for employers in New York.

Hire a Veteran Credit

Employing a veteran for at least one full year entitles New York businesses to the Hire a Veteran tax credit. To qualify, employers must provide the veteran with at least 35 hours a week of work and claim the credit in the year in which the veteran completes one full year of employment.

Hiring a non-disabled veteran comes with a $5,000 credit and hiring disabled veteran may qualify businesses for a credit up to $15,000.

Claiming your R&D Tax Credit Guide

Youth Hiring Credit

New York implemented the Youth Jobs Program to encourage at-risk and disadvantaged young people to join the workforce. Part of the program is offering tax credits to employers.

New hires aged 16 to 24 make you eligible for a Youth Jobs credit up to $5,000 for full timers and $2,500 for part timers. Businesses also must apply for certification from the U.S. Department of Labor and follow careful recordkeeping requirements for the program.

Workers With Disabilities Credits

There are two types of similarly-named credits for hiring workers with disabilities: the Workers With Disabilities Tax Credit, and the Workers [with disabilities] Employment Tax Credit or WETC.

The Workers With Disabilities Tax Credit provides up to $2,500 for part-time hires and $5,000 for full-time hires. It refers to people with developmental disabilities who are hired by your company.

The WETC offers up to $2,100 per hire applies to workers who are certified as having a disability and is intended to help them secure better options for work.

Excelsior Jobs Program

The Excelsior program encourages companies to invest in, and relocate to, New York. When businesses make commitments to invest, they receive tax credits based on four factors: jobs, investment level, research and development, and real property tax.

Empire State Jobs Retention Credit

This credit rewards employers for keeping jobs in New York despite adversity. The credit amounts to 6.85% of gross wages paid for certain jobs allowed under the program. Employers must join the Empire State Jobs Retention Program and meet a checklist of requirements including:

  • Operation predominantly in New York
  • Location in certain counties with declared emergencies
  • Demonstrable harm from emergencies
  • Retention of 100 full-time equivalent jobs
  • Certification from an overseeing agency
  • Additional requirements found here

Employee Training Incentive Program Credit

Also known as E-TIP, this program encourages training and internships. Employers can be credited for 50% of training costs up to $10,000 per employee and $3,000 per intern. Employers must apply for the program and meet certain eligibility criteria.

Employment Incentive Credit

If you’re a fast-growth company, don’t miss this tax credit. The EIC gives tax credits to employers who grow their workforce by at least 101% during a year. The credit is a percentage of your investment in growth, per the Department of Taxation and Finance.

Farm Workforce Retention Credit

New to New York is a tax credit that helps farm employers offset costs now and into the future. Owners of farms with eligible employees may qualify for a rising tax credit that started at $250 per employee in 2017 and tiers up to $600 per employee by 2021.

Minimum Wage Reimbursement Credit

If you employ young student earners at minimum wage, consider this tax credit. Students at least age 16 but not yet 20, who are paid at New York state minimum wage, can be counted. Employers take the total number of eligible hours worked during the taxable year and apply a tax credit multiplier based on a table found here.

QETC Employment Credit

Innovative tech businesses can qualify for the QETC credit, which stands for qualified emerging technology company, by demonstrating 101% growth. The credit can be used three consecutive years. Its amount is based on a formula where a base employment number is taken from the the average number of full-time employees for the current tax year and multiplied by $1,000.

Security Officers Training Credit

The New York State Division of Homeland Security and Emergency Services oversees this tax credit, which applies to building owners who hire security officers. The credit is calculated at $3,000 times the number of qualified officers who patrol taxpayer-owned buildings.

Need more information about New York tax incentives for employers? Learn more at the following links:

Department of Taxation and Finance Job Incentives

Department of Labor Hiring Incentives

Also, you can connect with Complete Payroll for a cost-saving approach to HR and payroll management.

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Topics: Taxes, Labor law, Payroll

Written by Complete Payroll

We do payroll, HR, timekeeping and more for employers all over the country from a small, rural town in Upstate New York. And we're constantly publishing articles and other resources to help business owners, HR managers or anyone that helps manage a workforce. Welcome to Payroll Country!

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