Earn Tax Credits for Welfare-to-Work and Work Opportunity
- Employers make the hiring decisions
- No limit to the number of new hires who can qualify their employer for these tax savings
- Minimal paperwork to claim the tax credits
The Work Opportunity Tax Credit for hiring all WOTC target groups, except Summer Youth Employees, is up to $2,400 for each new hire: 40% of qualified first-year wages for those employed 400 or more hours; 25% for those employed at least 120 hours. Qualified wages are capped at $6,000. Summer Youth wages are capped at $3,000. To qualify employers for the WOTC, new hires must begin work before December 31, 2001.
The Welfare-to-Work Tax Credit for hiring long-term welfare recipients is as much as $8,500 per new hire: 35% of qualified wages for the first, and 50% for the second year of employment. Qualified wages - which include tax-exempt amounts received under accident and health plans as well as educational and dependent assistance program - are capped at $10,000 per year. To qualify employers for this tax credit, new hires must begin work at any time after December 31, 1997, and before January 1, 2002, and must be employed for at least 400 hours or 180 days.
For more information about Greater Buffalo Works, please call 716/845-6003.
