Grab a red-hot tax credit for summer workers — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
The usual Work Opportunity Tax Credit (WOTC) is equal to 40 percent of the first $6,000 in wages paid to a qualified worker during the year. It’s a year-round proposition.
Strategy: Hire disadvantaged teenagers to help out this summer. That may entitle you to special summertime tax credits in addition to the regular credits. The credit for a summer youth worker is capped at 40 percent of the first $3,000 in wages.
To qualify, the youth must be age 16 or 17 and be hired between May 1 and Sept. 15. As with the other jobs credits, you must secure certification for those workers.
Tip: If you keep a summer youth on the payroll longer, they also may qualify for the WOTC or welfare-to-work credit.