A lot is set to change–but one thing isn’t going away
As we move into 2025, small business owners need to stay informed about upcoming tax policy changes that could impact their bottom line. With new leadership at the helm, both corporate tax policies and broader trade regulations are expected to shift. Let’s break down the key changes to expect, and why this is the perfect time to take advantage of the Work Opportunity Tax Credit (WOTC).
Potential corporate tax rate reduction
One of the most talked-about changes under the new leadership is a reduction in the corporate tax rate. Currently set at 21%, there’s speculation that the corporate tax rate could drop as low as 20% or even 15%. This change is designed to encourage business investment and stimulate economic growth by allowing corporations to keep more of their earnings.
For small business owners, especially those operating as corporations, this could mean a significant reduction in tax liability. If your business is incorporated, it’s time to review your corporate tax strategies and work with a tax advisor to ensure you’re fully optimizing the benefits of this potential rate cut.
Changes in tariffs and trade policies
Another major shift on the horizon is the anticipated change in tariffs and trade policies. The new administration is expected to implement a universal baseline tariff of 10-20% on U.S. imports, with much higher tariffs—up to 60%—on Chinese imports. These changes could dramatically affect businesses that rely on international trade.
If your business imports goods, this could mean higher costs, which may need to be absorbed or passed on to consumers. It’s essential to reevaluate your supply chains, cost structures, and overall business strategy to prepare for these changes. Consult with your tax advisor to assess how these new tariffs might affect your operations and how you can adjust your tax strategy to stay compliant while minimizing the impact on your financials.
Extension of the Tax Cuts and Jobs Act
There is also talk of extending key provisions from the Tax Cuts and Jobs Act (TCJA), which would affect both corporate and individual tax returns. For example, the potential removal of the cap on state and local tax deductions could provide significant relief for businesses in high-tax states. Additionally, there may be new individual tax exemptions and deductions, such as the exclusion of tip income and overtime pay from taxation, along with a possible deduction for car loan interest.
These changes could create new opportunities for small business owners and employees alike to reduce their taxable income. This is a great time to assess your current tax situation and work with a professional to leverage these new deductions and exemptions.
2025 is the right time for the Work Opportunity Tax Credit
With so many changes in tax policies and potential economic uncertainties, the Work Opportunity Tax Credit (WOTC) offers a reliable way to reduce your tax liability. This long-standing credit has been extended thirteen times since 1996 and continues to be a dependable tool for small businesses looking to save on taxes. As other tax policies shift, the WOTC remains a consistent opportunity for tax savings that you can count on. If you haven’t already, now is the time to start using this credit to boost your tax efficiency.
We make claiming WOTC simple
WOTC is an incredible opportunity, but the process of claiming it can be tricky. From determining which employees are eligible to filing the necessary paperwork on time, it can feel overwhelming—especially for small business owners with limited resources.
That’s where we come in. Our specialized tools and services are designed to help small businesses like yours navigate the WOTC process with ease. We simplify everything, ensuring you can quickly and accurately determine which of your new hires qualify for the credit, and streamline the application process to ensure you don’t miss out on any savings.
By using our services, you can:
- Screen new hires for WOTC eligibility
- Easily track and manage all your WOTC claims
- Ensure compliance with all rules and deadlines
With the paperwork handled, you can focus on what matters most—growing your business and enjoying the tax savings that come with WOTC.
Don’t miss out on tax savings in 2025
If you’ve never used WOTC before, 2025 is the perfect time to start. Our tools and expert support make the entire process simple, risk-free, and efficient. Begin screening your new hires for WOTC eligibility, claim those credits, and keep more money in your business. With WOTC on your side, you’ll be able to reduce your tax burden and reinvest in your growth.
Start now, and make 2025 the year you maximize your tax savings with WOTC!