Virginia Employers with Teleworkers: Action Required by October 31st!
Posted by accountingweb on 1167
If your company plans on launching or expanding a telecommuting program in 2012 in Virginia, then your company needs to file an application with Virginia by October 31st. The form due by October 31st, is only an estimate of telework expenses expected to be incurred in 2012. The credit applies to C corporations and pass-through entities. A formal telework agreement with the employee must be signed after July 1, 2012. Overview In 2011, Governor Bob McDonnell and the Virginia General Assembly approved new tax credit legislation aimed at encouraging private sector telework. Telework, defined as a work arrangement where an employee is allowed to perform normal work duties at a location other than their central work location, is an effective congestion management strategy to remove cars from the highways and has been shown to improve employee productivity, retention and satisfaction. Virginia employers hoping to claim tax credits for the costs of launching or expanding employee telecommuting programs in 2012 need to file estimates of those expenses with the Virginia Department of Taxation by Oct. 31. Under Telework!VA, a new income tax credit is available to Virginia companies starting up or expanding employee telecommuting programs in 2012 and 2013. The Telework Expenses Tax Credit allows eligible firms to recover expenses of up to $1,200 per employee and up to a $50,000 per-company cap for telework expenses incurred during taxable years 2012 and 2013 for items such as computers, modems, high-speed internet connections, telecommunications, and more. For more info, go to Telework!VA