The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

Employers can get a tax credit by hiring underprivileged workers

If you’re an employer, you’re probably always looking for ways to cut corners and increase your bottom line. It might surprise you to learn that the Internal Revenue Service (IRS) offers a way to help you out. The IRS is creating an added tax incentive for you to hire candidates in disadvantaged circumstances—and it can end up saving you a lot of money.

Employers can receive a substantial tax credit—worth up to 40 percent of a new hire’s first-year wages—through the Work Opportunity Tax Credit (WOTC). To take advantage of this credit, employers must hire candidates who fall under any of the following categories:

  • Ex-felons
  • Disabled veterans and other unemployed veterans
  • Long-term, out-of-work individuals (unemployed for at least 27 weeks) who receive government unemployment benefits
  • Recipients of public assistance—e.g., food stamps, Supplemental Security Income or family assistance programs
  • Residents of designated Empowerment Zones or Rural Renewal Counties
  • Referrals from vocational rehabilitation

How to apply

To claim the credit, employers must complete IRS Form 8850 along with the Department of Labor ETA Form 9061 or 9062, as necessary, and submit them to your state’s workforce agency within 28 days of a new hire’s first day of work. Employers can contact the WOTC coordinator in their state for details and state-specific procedures.

Many businesses are experiencing a tight market. Such conditions tend to disproportionately hurt certain disadvantaged subsets of the population. The WOTC provides a way to motivate employers to bring vulnerable groups into the workforce. The tax credit can have positive impacts on both business and the community.

No Comments

Leave a comment
Comment Information
Email us for a Response

Talk to an Attorney

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
Atlanta Office Location

Payment Cards