Tax Credit?

WITracy

Has anyone ever heard of a company receiving a tax credit for employing someone with a disability? Thanks.

SMace

Yes, I have heard of it. Details, I do not know.

HRsage

[font size="1" color="#FF0000"]LAST EDITED ON 03-03-04 AT 11:48AM (CST)[/font][br][br]I know a little about it. It's called the Work Opportunity Tax Credit (WOTC). It's a federal program that gives employers a tax credit for employing people from certain groups.

We outsource the admin portion of this. Do a google search for WOTC or CIC Enterprises- that's the company we use.

HRQ

I recently started researching the WOTC. Go to [url]www.uses.doleta.gov/wotcdata.asp[/url]. The site explains the qualifications, provides forms, reporting requirements, etc.

It looks pretty simple to administer, as far as completing qualification paperwork on new hires and reporting it.

I am unclear on how the employer actually receives the tax credit, should we hire someone who qualifies. I'm sure this info is on the website somewhere, but I haven't found it yet.

If anybody out there is participating, I'd love to hear from you!

sonny

To add to the others. . although information is old and not sure it is accurate . .When I worked with people with disabilites and adminstered a JTPA grant we used this type of program as a selling point to hire our clients. Unfortunately, it has been so long, I don't remember a lot. The Workforce Investment Act replaced JTPA which replaced CETA (see how old I am) and I believe they administer the WOTC. I think the er receives the tax credit by a deduction on taxes owed the IRS. I think if you do some searches and dig enough you maybe able to get through the red tape. Good luck.. IMHO, hiring people with disabilites can be a real win-win situation.

WITracy

I spoke with the IRS & the WOTC program ended 12/31/03. It is not retroactive & only applies to the first year's so if you hired someone 1/1/04 or later, you can no longer take advantage of this program. Dang.

Don D

The Workforce Investment Act (WIA) replaced the Job Training Partnership Act (JTPA). There are funding mechanisms in place in some, if not all, states that do allow for employers to receive tax credits for hiring and training certain eligible individuals. Typically your Employment Security offices are involved in the matrix of service providers and will be able to either give you information or refer you to someone who can. If you strike out there, you can contact the governor's office in your state for a referral to the proper agency.

HRsage

WITracy, I wasn't aware that the program had expired so I did a quick search. It is expired but from what I can tell is that Congress may reapprove it again and might make the credits retroactive.
We are still participating in the program, I guess in hopes that the credits will be applied retroactive.
This website might help:

[url]http://www.dwd.state.wi.us/dws/bjs/taxcredit/default.htm[/url]