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Tax credits give incentive for hiring

     The state Department of Labor has launched a campaign to let employers know about state and federal tax credits that benefit certain employers or employees.

 

Three credits give employers incentives to hire workers who traditionally have a hard time getting and keeping jobs:

  • Hiring Incentive Tax Credit — Employers can get a credit of $125 a month for up to 12 months for each employee hired who has received more than nine months of Temporary Family Assistance and who has worked or received training for at least 30 hours per week for a calendar month. This credit can total as much as $1,500 for each eligible employee per year. The state has a limited amount of money set aside for this credit, so the number of available credits is limited. The tax credits must be reserved in advance of hiring. The current tax credit reservation period began July 1 and ends Dec. 31 of this year.
  • Welfare-to-Work Tax Credit — This federal credit rewards employers for hiring long-term recipients of Temporary Assistance for Needy Families. Employers may receive tax credits of up to $3,500 in the first year and $5,000 in the second year when they receive certification for eligible new employees.
  • Work Opportunity Tax Credit — This federal credit targets the hiring of people who traditionally find it hard to get and retain jobs, such as welfare recipients, ex-felons and high-risk youths. Employers may receive up to $2,400 in tax credits when they receive certification for eligible new employees.


Two tax credits are available for certain low-income employees:

Earned Income Tax Credit and Advance Earned Income Tax Credit — These federal credits reduce or eliminate the income tax owed by eligible individuals. A portion of the tax credit may be included in the employees’ paychecks, so they see the benefit long before the typical tax refund season.