Latest news with #WOTC
CNBC
01-07-2025
- Business
- CNBC
Magic: The Gathering card game will lead to even more gains for this toymaker, Goldman says
The strength of Hasbro's gaming portfolio is being overlooked by investors, according to Goldman Sachs. Analyst Stephen Laszczyk upgraded shares of the toymaker to buy from neutral and lifted his 12-month price target by $19 to $85. That suggests the stock could jump about 15.1% from Monday's close. "We believe Hasbro is well-positioned to exceed consensus expectations in 2026+ across revenue, adjusted EBITDA, and free cash flow," Laszczyk wrote in a Monday note to clients. He added that his 17.5x target price-to-earnings multiple is in line with where other scaled video game and digital media companies trade. The analyst's pointed to three factors driving his upgrade and price target hike: Magic: The Gathering's new Universes Beyond sets, which include card designs from Fortnite, Dungeons & Dragons and Marvel properties The company's self-published digital gaming strategy "Better-than-feared" performance from the toy business as tariff relief, market share growth and pricing insulate profitability HAS 1Y line Hasbro stock performance over the past year. Key to Laszczyk's investment thesis for Hasbro are his growth expectations for Wizards of the Coast (WOTC), which he expects to contribute the majority of Hasbro's EBITDA going forward as the company leans into digital gaming. He forecasts WOTC's revenue will see roughly 7% compound annual growth over the next five years — from $1.755 billion in 2025 to $2.454 billion in 2030. "We believe that long-term execution opportunities in the WOTC segment are underappreciated by the market, while near-term macro risks to profitability in the Consumer Products segment are overstated (as discussed within)," Laszczyk said. "As a result, we believe that shares currently offer investors an attractive risk-reward skew with a robust catalyst path over the next ~12 months." Laszczyk sees upside overall being driven by Hasbro's self-publishing games business, which he believes can contribute between $150 million and $300 million in revenue per game, or roughly $450 million annually, over the next 5 years. According to the analyst, Magic the Gathering will be Hasbro's first $1 billion brand driven by higher player volume, spend per player and increased app engagement. Hasbro is also a durable play compared to its peers, according to Laszczyk. "Hasbro benefits from a portfolio of strong IP (e.g., Transformers, Marvel, Monopoly, Magic The Gathering) and from one of the most flexible & strongest supply chains in the toy industry," he said. "Given these characteristics, we see Hasbro's significant scale as a key factor insulating the company from broader weakness in industry supply/demand." Hasbro shares rose nearly 2% in the premarket. Shares have been on fire this year, soaring 32% in that time.
Yahoo
15-05-2025
- Business
- Yahoo
New York contractors boost pay, benefits to fight labor shortages
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. New York construction firms are ramping up pay and benefits to stay competitive in a tight labor market, according to a new 2025 study from The Bonadio Group, a New York City-based national accounting and advisory firm. The report, which surveyed more than 200 contractors in New York, revealed construction firms are feeling the squeeze of overall building costs. Many firms reported they have had to pass along higher costs to clients or simply delay projects altogether. Both overall and nonresidential input prices are now 0.8% higher than a year ago and sit more than 40% higher compared to February 2020. Meanwhile, the number of quits jumped by 17,000, marking the second straight month of increases. In response, companies are also investing in workforce development programs, expanding flexible work options and introducing mental health resources to attract and retain talent, said Nancy Cox, construction and real estate industry leader at The Bonadio Group. Still, despite these efforts, Cox said contractors are not fully taking advantage of available tax credits, which could help alleviate some of these cost concerns. Here, Cox talks with Construction Dive about New York construction wages, benefit packages and how to stay competitive. This interview has been edited for clarity and brevity. NANCY COX: Based on the results of our study, we found that wages have increased by 12.4% on average as labor shortages persist in the industry. To stay competitive, companies are also implementing other strategies such as offering performance-based bonuses, profit-sharing retirement plans and training and workforce development programs. For example, about 79% of companies now offer cash bonuses, including performance-based and referral incentives. At the same time, over 90% of construction firms provide retirement plans, most often through profit sharing models that link employee and company success. Much like most other industries, companies are going to have to implement new tools such as artificial intelligence and other operational efficiencies in order to balance wage growth amongst rising costs. Our survey found that companies are expanding their employee benefits, such as flexible work arrangements, financial planning assistance and mental health support and wellness programs. Further, companies are investing in advanced safety monitoring systems and smart personal protective equipment to improve worker safety and satisfaction. One thing we found interesting is that a majority of the respondents are not currently taking advantage of available federal and state employment tax credits such as the Work Opportunity Tax Credit. About 82% of respondents were unaware of available federal and state employment tax credits. WOTC is nuanced, but could provide for substantial credits for hiring veterans and underrepresented groups. Recommended Reading MTA plans to build through budget uncertainty
CBS News
30-04-2025
- Business
- CBS News
How does the IRS work opportunity tax credit work?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. If you're a business owner, taking advantage of the Work Opportunity Tax Credit could result in saving thousands of dollars on your taxes. Getty Images/iStockphoto If you're a business owner, you're likely on the lookout for ways to save money, especially in today's uncertain economic environment. But what if hiring the right person for the job could also earn you a tax break with the Internal Revenue Service (IRS)? That's what the Work Opportunity Tax Credit (WOTC) is designed to do. It rewards companies for hiring people who've had a difficult time finding employment, like veterans, people who have been long-term unemployed and those receiving government assistance. Established by Congress as part of the Small Business Job Protection Act of 1996, this employer-friendly tax credit creates a win-win scenario: Employers receive tax savings while those who are facing employment barriers gain valuable opportunities to enter or re-enter the workforce and achieve financial independence. And, this federal tax credit can be quite valuable as a business owner, as it can knock thousands off your tax bill for each eligible employee that's brought on board. But while the Work Opportunity Tax Credit has been around for years, many employers still don't know about it or assume it's too complicated to take advantage of. This credit is worth a closer look, though — especially if you're already hiring. Find out how to get help with your IRS tax debt now. How does the IRS Work Opportunity Tax Credit Work? The Work Opportunity Tax Credit is a federal income tax credit available to employers who hire candidates from certain target groups who have consistently faced significant barriers to employment. The credit, which directly reduces an employer's tax liability on a dollar-for-dollar basis, making it more valuable than a tax deduction, is authorized under the Internal Revenue Code and administered jointly by the IRS and the U.S. Department of Labor (DOL). The amount of the credit varies based on the number of hours worked and the employee's wages during their first year of employment. For most eligible hires, employers can claim a tax credit equal to 40% of the qualified employee's first-year wages, up to the maximum credit amount for that target group, if the employee works at least 400 hours during their first year. If the employee works between 120 and 399 hours, employers can claim 25% of the first-year wages. That generally equates to a credit of up to $2,400 per qualifying employee, according to the U.S. Department of Labor. However, the credit amount can go as high as $9,600 for certain veterans and up to $6,000 for individuals who receive long-term government assistance. To claim the credit, employers must complete these key steps: Pre-screen applicants: Before or on the date of the job offer, the employer must have the applicant fill out IRS Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Credit). Submit paperwork: The employer must then submit Form 8850 to the appropriate state workforce agency (SWA) within 28 days of the new employee's start date. Receive certification: If the SWA certifies that the employee belongs to one of the WOTC target groups, the employer may claim the credit by filing IRS Form 5884 when submitting their federal tax return. Explore the tax relief options available to you today. What are the benefits of the Work Opportunity Tax Credit? The most obvious benefit of the WOTC is the reduction in tax liability for business owners. The credit is non-refundable, which means it can directly lower the amount of income tax a business owes for the year, but it won't result in a refund if the credit exceeds the business's tax bill. That said, any unused credit can typically be carried back one year or carried forward for up to 20 years, which makes it even more valuable over time. Another major benefit is that the credit supports inclusive hiring practices. By incentivizing employers to consider job candidates who might otherwise struggle to find work — such as people with disabilities or those with criminal records — the WOTC encourages diversity in the workforce and helps close employment gaps for marginalized groups. The program is also available to both for-profit businesses and certain tax-exempt organizations (such as 501(c)(3) nonprofits), although nonprofits can only claim the credit for hiring qualified veterans, SNAP recipients or those who have been unemployed for a certain period of time. For small businesses in particular, though, taking advantage of the WOTC can be a smart way to offset onboarding costs while building a more inclusive team. Who qualifies for the Work Opportunity Tax Credit? To qualify for the WOTC, an employee must fall into one of the IRS-defined target groups. Some of the most common groups include: Veterans, including those with service-connected disabilities or who have been unemployed for extended periods Recipients of Temporary Assistance for Needy Families (TANF) Recipients of Supplemental Nutrition Assistance Program (SNAP) benefits Designated community residents (those who live in certain economically distressed areas) Ex-felons hired within a year of release or conviction Vocational rehabilitation referrals Summer youth employees living in empowerment zones Supplemental Security Income (SSI) recipients Long-term unemployed individuals To be eligible, the employee must be newly hired (and not someone who has previously worked for the business) and must work at least 120 hours for the employer to qualify for a partial credit. Employees who work 400 hours or more generally allow the employer to claim the maximum available credit. The bottom line The Work Opportunity Tax Credit represents a valuable but often underutilized resource for businesses seeking to reduce tax liability while expanding their workforce. By providing substantial financial incentives for hiring candidates from disadvantaged backgrounds, the program creates positive outcomes for employers, employees and communities alike. For businesses interested in claiming the WOTC, the key is understanding the qualification requirements and the certification process. While there is some administrative work involved in claiming this credit, the potential tax savings make it well worth the effort for many employers.
