Tax Incentives to Hire, Retain, or Compensate Employees (Portfolio 514)

The Bloomberg Tax Portfolio, Tax Incentives to Hire, Retain, or Compensate Employees, No. 514, brings together in one place analyses of the many income tax provisions designed to encourage employers to hire employees and to retain those employees. The Portfolio separates the analyses into three categories, and presents a history of the provisions as they have been added, expanded, and modified.

First, the Portfolio discusses incentives to hire or retain employees that are provided in the form of exclusions from gross income. This brings together in one place analyses of amounts that are taken into account in computing gross income on account of employment decisions.

Second, the Portfolio discusses incentives to hire or retain employees that are provided in the form of deductions. This brings together in one place analyses of amounts that are taken into account in computing taxable income on account of employment decisions.

Third, the Portfolio discusses incentives to hire or retain employees that are provided in the form of credits. This brings together in one place analyses of amounts that are subtracted in computing tax liability on account of employment decisions.

Among other items, the Portfolio discusses the tax treatment of Manpower Act payments, contributions to Black Lung benefits and employer liability trusts, the work opportunity credit, the welfare-to-work credit, and the Indian employment credit.