Finding full-time work can be a challenge, and for some populations the struggle is much greater. Fortunately, the government offers certain tax benefits that incentivize employers to offer employment to people from certain groups. The Work Opportunity Tax Credit is one such federal tax credit. It is offered to private sector employers for hiring individuals from certain target groups who have faced barriers to employment, including veterans, people with disabilities, recipients of public benefits, and more.
The Tax Benefits
Employers who want to utilize this tax credit are eligible to receive a credit ranging from $1,200 to $9,600 for each qualifying employee. While there is no limit to the number of people employers can hire to claim this credit, there are several factors that determine the amount of credit an employer receives for each employee. These include:
- How long the new employee was unemployed
- The amount of the employee’s salary
- How many hours the employee worked the first year
If you want to learn more about how your business could benefit from the Work Opportunity Tax Credit, then you should get in touch with the tax help professionals at Taxation Solutions, Inc. We’re here to offer you effective tax tips that will help minimize your tax liability, so get in touch with us today!