Tax Credit Program

May 12, 2009

Who is Honkamp Krueger & Co., P.C. Honkamp Krueger & Co., P.C. is among the top 100

largest Certified Public Accounting firms in the U.S.A., and the largest independently owned CPA firm in Iowa. Founded in 1947, we now do business in 45 states.

Our firm has grown, diversified, and embraced technology, yet our mission remains the same—to provide each client with exceptional service and expertise. Charting a course into the next century, we welcome the opportunity to serve you as your partner in success, facing the challenges and opportunities together.

Work Opportunity Tax Credit Program (WOTC) Provides businesses with an incentive to hire

individuals from groups that have particularly high unemployment rates or special employment needs.

Groups that are eligible: High Risk Youth Veterans Ex-felons Vocational Rehabilitation Referrals Summer Youth Employees Food Stamp Recipients Recipients of Assistance Under Aid to Families with Dependent

Children (AFDC) or its successor program, Temporary Assistance for Needy Families (TANF)

Supplemental Security Income (SSI) Recipients

Industries that have had great success with the WOTC Program:

Staffing Telemarketing Healthcare Restaurants/Fast Food Chains Convenient Stores Manufacturing Hospitality

Questions when considering WOTC

Are you taking advantage of tax credits for your business

How many employees do you have – should have a minimum of 100 employees

Do you have jobs that pay $10 an hour or less

Do you hire monthly

Honkamp Krueger & Co., P.C. works for your clients! We provide start-up kit for each location that

includes customized WOTC/WtW Forms We keep client informed of any changes or new

opportunities in these programs We administer every aspect of the program

including service initiation, applicant screening, documentation preparation, interaction with government agencies and comprehensive reporting of savings.

The Honkamp Krueger & Co., P.C. Advantage! Our customer service is what gets us the best results

and positive feedback from our clients! We email our clients and all their locations monthly

reminding them about the WOTC Process and what has to be done to insure lucrative credits continue to be processed

We call our clients and all their locations every 2 months to update contact information and to answer any questions about our program and to insure the process is still be followed to its fullest potential

WOTC/WtW Process

Every new hire completes the 2 forms8850 Form9061 Form

All Forms are mailed on a weekly basis to our office

All forms are tracked and reviewed to determine qualified employees

All qualified employees are submitted to their respective state to obtain an approved certificate

WOTC/WtW Process

Certificate comes back to us with confirmation of approval or denial

Information is logged Quarterly billing – a request for wages and hours

for each employee who qualifies will be sent out at the end of each quarter

An automatic transmission of your clients payroll records is most ideal for accuracy and time savings on their end

WOTC/WtW Process

Quarterly summary will be sent to client summarizing all their credits

WOTC/WtW Reports

End of Year Report will provide the following:

Employee information Division/Location Total wages and hours Type of credit: WOTC or WtW Percent of credit

Empowerment/Renewal Community Zone Credits To qualify a business and employee need to be located

within a designated federal zone Client provides a list of all their locations with complete

address information and we can determine which locations are located within a zone

If client has any locations within a zone we request an employee list with address information to confirm who lives within the zone.

Empowerment Zone Credit is up to $3,000 per employee per year

Renewal Community Credit is up to $1,500 per employee per year

Empowerment Zone Locations Pulaski County, AR Tucson, AZ Fresno, CA Los Angeles, CA (city and county) Santa Ana, CA New Haven, CT Jacksonville, FL Miami/Dade County, FL Chicago, IL Gary/Hammond/E Chicago, IN Boston, MA Baltimore, MD Detroit, MI Minneapolis, MN St. Louis, MO/ East St. Louis, IL

Cumberland County, NJ New York, NY Syracuse, NY Younkers, NY Cincinnati, OH Cleveland, OH Columbus, OH Oklahoma City, OK Philadelphia, PA/Camden, NJ Columbia/Sumter, SC Knoxville, TN El Paso, TX San Antonio, TX Norfolk/Portsmouth, VA Huntington, WV/Ironton, OH Washington D.C.

Renewal Community Zone Locations

Green/Sumter County Mobile County, AL Southern, AL Los Angeles, CA Orange Grove, CA Parlier, CA San Diego, CA San Francisco, CA Atlanta, GA Chicago, IL Eastern, KY Central Louisiana Ouachita Parish, LA Lawrence, MA Lowell, MA Detroit, MI Flint, MI West Central Mississippi Turtle Mountain Band of Chippewa, ND

Camden, NJ Newark, NJ Buffalo-Lackawanna, NY Jamestown, NY Niagara Falls, NY Rochester, NY Schenectady, NY Hamilton, OH Youngstown, OH Philadelphia, PA Charleston, SC Chattanooga, TN Memphis, TN Corpus Christi, TX El Paso County, TX Burlington, VT Tacoma, WA Yakima, WA Milwaukee, WI

State Tax Credits

Many states have lucrative tax credits Many of the credits are based on a business

re-locating, expanding or starting a business within a specific designated zone

With these credits a business would need to apply for these programs in advance of the

re-location, expansion or new business in order to qualify

State Tax Credits

Iowa Wage & Benefits Credit Credit given for newly created job in state of

Iowa by an Iowa resident who is making more then 130% of the county average wage.

If they do qualify eligible for 5-10% credit annually on total wage and benefits

State Tax Credits

Missouri State Tax CreditsEnterprise Zone – needs to be applied for

each year through the State of Missouri

State Tax Credits

Illinois State Tax CreditsJobs Tax CreditEconomic Development for a Growing

Economy (EDGE) Program – needs to be applied for in advance through Department of Commerce and Economic Opportunity

Why Honkamp Krueger & Co., P.C.

Proven Results with hundreds of satisfied clients that are receiving thousands of dollars in credits annually

Superior customer service which in turn provides better participation and higher credits for your clients!

We will pursue all federal and state tax credits for all your clients