Work Opportunity Tax Credit saves employers tax dollars
The Work Opportunity Tax Credit (WOTC) is available to employers who hire individuals from one of nine targeted groups. Recent legislation extended the credit through August 31, 2011. To take the credit, the employee(s) you hire must be from one of the following targeted groups:
- Families eligible to receive benefits under the Temporary Assistance for Needy Families program.
- High-risk youths.
- Qualified ex-felons.
- Vocational rehabilitation referrals.
- Qualified summer youth employees.
- Qualified veterans.
- Families receiving food stamps.
- Persons receiving certain Supplemental Security Income (SSI) benefits.
- Qualified long-term assistance recipients.
The credit is generally 40 percent of qualified wages paid in the first
year of employment, up to $6,000 in wages for a maximum credit of
$2,400. The maximum credit for summer youth employees is $1,200, which
is 40 percent of the first $3,000 of wages. Certain qualified veterans
and long-term assistance recipients have higher limits.
|
