Are You Hiring Employees? Don't Miss Out On A Valuable Credit.
Small business owners many times miss out on the Work Opportunity Tax Credit when hiring new employees. This federal credit is available to employers who hire and retain certain eligible employees, including veterans, qualified ex-felons, designated community resident, qualified summer youth employees, Supplemental Nutrition Assistance Program (SNAP) benefit recipients, and others.
The amount of the tax credit available under the WOTC program varies based on the employee’s target group, total hours worked, and total qualified wages paid. For 2021, most target groups have a maximum credit of $2,400 per eligible new hire, but some may be higher. Hiring certain qualified veterans, for instance, may result in a credit of $9,600 per eligible new hire.
Employers must first receive certification from a State Workforce Agency that the new hire meets the qualification of one of the target groups. IRS Form 8850 and either ETA Form 9601/Individual Characteristics Form or ETA Form 9062/Conditional Certification Form must be completed and submitted with IRS Form 8850.
Don't miss out on a valuable credit.
Please contact Blackbird Accounting at 360 433-2659 with questions.
Conditional Certification Work Opportunity Tax Credit - ETA Form 9062 (Rev. November 2016) (dol.gov)