Want to save your company some money, and look good in the process? Point out the tax incentives available if your company hires people from certain "disadvantaged" groups.
Two new studies show that human resources managers and business owners are painfully unaware of the various tax breaks available. Among the best federal credits:
Work opportunity credit. The WOTC is available for companies that hire workers from nine specific target groups, including disabled people, ex-felons and veterans. It's equal to 40 percent of the person's first-year wages up to $6,000, for a maximum credit of $2,400 per certified worker. For details, visit www.uses.doleta.gov/ wotcdata.asp.
Welfare-to-work credit. The WTWC applies to wages paid to long-term family assistance recipients. It's equal to 35 percent of qualified wages for the first year of employment and 50 percent for the second year. Qualified wages are capped at $10,000 per year. For details, visit www.uses. doleta.gov/wtw.asp.
Companies can also take other tax breaks for helping disabled employees and customers. Examples: the Dis-abled Access Credit, the Architectur-al/Transportation Tax Deduction or the Social Security Administration Em-ployment Network Cash Provision. For details, go to www.disabilityinfo. gov/Employment.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Small Business Tax Deduction Strategies
- Employees have no privacy claim to company-supplied home PC
- Deduct medical expenses for supported relative
- How prepared are you to weather a tax storm?
- Avoid lawsuits by sticking to performance when you fire