Work Opportunity Tax Credit
Created through the Small Business Job protection Act of 1996, the Work Opportunity Tax Credit (WOTC) provides employers an incentive to hire certain target group members with barriers to employment.
Employing qualified target group members can reduce an employer's federal income tax liability. At the end of the tax year, the employer claims a credit up to $2,400 for each WOTC new hire.
For more information on how to be a qualified employer visit the U.S. Department of Labor.
Welfare to Work Tax Credit
Created through the Taxpayer Relief Act of 1997, the Welfare-to-Work Tax Credit provides employers an incentive to hire long-term family assistance recipients.
An employer receives a federal tax credit of 35% in the first year, and 50% during the second year for the first $10,000 of qualified wages paid to certified employees that worked at least 400 hours or 180 days during each of those years.
Certified employees hired after december 31, 1997 and before January 1, 2006, have one year from the hire date to earn the tax credit. The maximum credit is $8,500 for each eligible person hired.
For more information on Certification please visit U.S. Department of Labor.
Disclaimer: Amounts subject to change according to the U.S. Department of Labor mandates.
