Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — Tax Credit Legislative Updates for the Northeast and Midwest States (ADP Webcast) (May 2012)
40 slides from Automatic Data Processing's conference presentation, May 2, 2012
Slide 1: Tax Credit Legislative Updates for the Northeast and Midwest States
Tax Credit Legislative Updates for the Northeast and Midwest States An ADP Webcast Wednesday, May 2, 2012 1 PM Eastern The information and materials provided in this webinar are for informational purposes only and not for the purpose of providing legal advice. Further, the information and materials
Slide 2: Housekeeping
Housekeeping This is one of a number of complimentary webinars that ADP offers to Finance and HR professionals each year Today’s webinar will last for 60 minutes, ending at 2 pm Eastern The last 10 minutes of today’s program have been reserved for Q&A A .pdf copy of today’s slides is availab
Slide 3: CPE Credit
CPE Credit Are you planning to apply for CPE and/or RCH credits for attending today’s webinar? A. CPE Credit Only D. No B. RCH Credit Only E. Not Applicable C. Both CPE & RCH Credits NASBA® (National Association of State Boards of Accountancy) and APA (American Payroll Association) requirements fo
Slide 4: About ADP
About ADP Over 570,000 clients worldwide Pays 1 out of 6 in the U.S. 33M worldwide Founded in 1949 Went public in 1961 45,000 Associates Revenues of approximately $10 Billion In 60+ Countries Market capitalization of >$23 Billion 1 of 4 AAA Rated U.S. Industrial Companies Electronically ‘moving’
Slide 5: Today's Panel
Today’s Panel Warren Lubliner Karen Kelly Mike Bruno ADP ADP ADP Northeast / North Central Director, Tax Credit Services Manager, Tax Credit Services Practice Leader 5 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 6: Agenda
Agenda NY Youth Works Tax Credit Connecticut Job Expansion Tax (JET) Maine Capital Investment (Bonus Depreciation) Credit Promoting Employment Across Kansas (PEAK) Act Updates on Legislative Changes and Expiring Credits Wrap-Up Q&A 6 © Copyright 2012 ADP, Inc. Proprietary and Confident
Slide 7: Polling Question #1
Polling Question #1 How is your company taking advantage of state tax credits and incentives? A. We prepare state credits and incentives “in house”. B. We outsource our state credits and incentives work. C. We currently don’t capture any state credits and incentives. D. I am unsure. NASBA® (Nation
Slide 8: NY Youth Works Tax Credit
NY Youth Works Tax Credit Available for FT (35 hours or more / week) and PT (20-34 hours / week) employees hired between 1/1/12 and 12/31/12 Both the business and the employee must be certified Business must be certified by 11/30/12 Employee must be certified by 12/31/12 8 © Copyright 2012 A
Slide 9: Eligibility Requirements
Eligibility Requirements Credit is available for hiring “at-risk” youth Employee must be between the ages of 16 and 24 Employee must be unemployed at the time of hire 9 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 10: Employee Must Reside in the Following Areas of NY State
Employee Must Reside in the Following Areas of NY State New York 10 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 11: Eligibility Requirements
Eligibility Requirements The employee must meet at least one of the following requirements: Is 18, no longer in school and doesn’t have a high school diploma or a GED Is receiving TANF Is receiving food stamps Is a member of a family that is receiving SSI benefits Is receiving free or reduced-c
Slide 12: Eligibility Requirements
Eligibility Requirements Has served time in juvenile detention, jail or prison, or are on probation of parole Is pregnant or a parent Is homeless Is currently in or will soon be leaving foster care Is a veteran Is a son or daughter of a parent who is currently in jail or prison or has be
Slide 13: Benefits
Benefits Employee Initial Credit Amount Additional Credit Amount Status (max. 6 months) (employee retained 1 yr) Full-Time $500/month $1,000 Part-Time $250/month $500 13 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 14: Planning Considerations
Planning Considerations Screening will be required to verify the qualifications Credit is available retroactively – businesses can go back to 1/1/12 to certify all eligible new hires Credit is refundable 14 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 15: Connecticut Job Expansion Tax (JET) Credit
Connecticut Job Expansion Tax (JET) Credit Available for each new FT employee hired between January 1, 2012, and prior to January 1, 2014 Pre-certification is required before hiring can begin No specific industry preference Credit can be applied against following taxes: – Insurance Premiums
Slide 16: Thresholds to Qualify for the Credits
Thresholds to Qualify for the Credits Current Number of Must Hire Employees < 50 employees 1 new FT employee 50-100 employees 5 new FT employees > 100 employees 10 new FT employees 16 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 17: Benefits
Benefits Basic benefit is $500/job/month for three years from hire date Added incentive for hiring an employee receiving vocational rehabilitative services, receiving unemployment or a veteran Credit for these employees is $900/job/month
Slide 18: Eligibility Requirements
Eligibility Requirements Each full-time job to which the credit applies: Must be a “New” job in CT Requires at least 35 hours of FT work per week for not less than 48 weeks in a calendar year Cannot be seasonal or part-time Must be employed at the close of the tax year of the qualified business
Slide 19: Planning Considerations
Planning Considerations Credit is available on legal entity basis Credit is non refundable and has no carryforward / carryback provision 19 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 20: Polling Question #2
Polling Question #2 Is your company planning to expand in or relocate to the State of Connecticut? A. Yes, we are expanding in Connecticut. B. Yes, we are relocating to Connecticut. C. No, we are not considering expanding or relocating to Connecticut. D. I am unsure. NASBA® (National Association o
Slide 21: Maine Capital Investment (Bonus Depreciation) Credit
Maine Capital Investment (Bonus Depreciation) Credit Tax credit allowed for taxpayers that claim a bonus depreciation deduction under IRS Code Sec. 168(k) Applicable for most property placed in service in Maine during the 2011 and 2012 taxable year Property owned by the following is not eligib
Slide 22: Benefit
Benefit The credit is equal to 10% of the federal bonus depreciation claimed under IRC Sec 163(k) with regards to ME assets Important note: – Taxpayers claiming the credit must add back the amount of bonus depreciation to their Maine taxable income 22 © Copyright 2012 ADP, Inc. Proprietary and C
Slide 23: Planning Considerations
Planning Considerations The credit is non refundable The credit has a 20-year carry forward period Subject to recapture if property generating the credit is not used in Maine for the entire 12-month period following the date placed in service 23 © Copyright 2012 ADP, Inc. Proprietary and Confi
Slide 24: Polling Question #3
Polling Question #3 Has your company already or will your company be making a significant capital investment in the State of Maine during 2011 and 2012? A. Yes, we have made a significant investment in 2011. B. Yes, we plan to make a significant investment in 2012. C. No, we are not planning any s
Slide 25: Promoting Employment Across Kansas (PEAK) Act
Promoting Employment Across Kansas (PEAK) Act Effective July 1, 2009, PEAK was enacted to foster economic development and jobs creation in KS Pre-certification is required prior to relocating or hiring of new employees 25 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 26: Threshold to Qualify for the Credit
Threshold to Qualify for the Credit Five new jobs in non-metropolitan counties over a two year period Ten new jobs in metropolitan counties over a two year period Shawnee, Douglas, Wyandotte, Johnson, Leavenworth and Sedgwick are metropolitan counties 26 © Copyright 2012 ADP, Inc. Proprietary
Slide 27: Benefits
Benefits Subject to Secretary of Commerce’s discretion, qualified companies may retain 95% of employee withholding taxes of PEAK eligible employees Depending upon the median or average wage for PEAK eligible jobs, taxpayers can claim the benefit for up to 7 years If a taxpayer is creating a mi
Slide 28: Eligibility Requirements
Eligibility Requirements Cannot have NAICS assignment of: 7132 (Gambling) or 8131 (Religious Organization) Sectors 44 & 45 (Retail Trade*), 61 (Educational Services), 92 (Public Administration), or 221 (Utilities) Subsector 722 (Food Services and Drinking Places) Bioscience NAICS assignment 28 ©
Slide 29: Eligibility Requirements
Eligibility Requirements Shall not be delinquent in federal, state or local taxes Shall not be under the protection of the federal bankruptcy code Must provide health insurance to all FT employees and pay more than 50% of the cost of such insurance Must have an aggregate median or average wa
Slide 30: Planning Considerations
Planning Considerations Must apply before relocating or hiring Recapture provision if taxpayer doesn’t increase minimum number of jobs within two years 30 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 31: Updates on Legislative Changes and Expiring Credits
Updates on Legislative Changes and Expiring Credits 31 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 32: Update on KS Business and Job Development Credit
Update on KS Business and Job Development Credit The credit is available for facilities located in all counties up to and including the 2010 Tax Year For tax year 2011, the credit is only available for facilities located in non-metropolitan counties No new credits may be generated for tax year
Slide 33: Update on KS Machinery and Equipment Credit
Update on KS Machinery and Equipment Credit Credit expired for tax years 2012 and later No “haircut” required for tax year 2011 33 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 34: Update on Colorado Enterprise Zone Credits
Update on Colorado Enterprise Zone Credits Effective 1/1/2012, pre-certification is required prior to commencing an activity that will earn an EZ business tax credit Effective 1/1/2012, taxpayer must file the tax return electronically if claiming an EZ credit. The return must also include a carr
Slide 35: Update on the Michigan Tax Credits
Update on the Michigan Tax Credits The Michigan Business Tax expired on 12/31/2011, along with the Compensation and Investment Credits associated with this tax Currently, no legislation has been enacted to extend the MBT Compensation and Investment Credits tax credits to the Michigan CIT 35 © Co
Slide 36: Polling Question #4
Polling Question #4 Has your company taken advantage of the incentives in the states of Michigan and Kansas that are set to expire? A. Yes, my company has taken advantage of the Michigan incentives. B. Yes, my company has taken advantage of the Kansas incentives. C. Yes, my company has taken advan
Slide 37: Q&A
Q&A 37 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
Slide 38: Thank You for Joining Us Today
Thank You for Joining Us Today For information on any of the ADP products or services referenced during today’s webinar: Phone 800-CALL-ADP or visit www.adp.com For a complete listing of ADP webinars and webinar recordings, go to: adp.com | tools & resources | events | webinars 38 © Copyright 20
Slide 39: Please Tell Us How We're Doing
Please Tell Us How We’re Doing Your input will be used to improve and plan future webinars ADP is committed to assisting businesses with increased compliance requirements resulting from rapidly changing legislation. Our goal is to help minimize your administrative burden so that you can focus on run
Slide 40: Thank You for Attending
Thank You for Attending. 40 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.