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Employers
- Hiring Certain Employees Can Save You Money
Incentives are available to employers
who hire Welfare
Transition Program (WTP) participants and individuals from other
targeted populations. For information on how to take advantage of
the incentives, please call Jobs ETC. Be
sure to consult your tax advisor for information relevant to your
company.
Welfare-to-Work
Tax Credit
The federal government has extended two major tax incentives
available for employers who hire former welfare recipients through
Dec. 31, 2001. Employers may receive tax credits of up to $8,500 per
employee for hiring welfare recipients who work at least 400 hours
(the equivalent of 10 full-time weeks) per year. Eligible employers
receive income tax credits equal to 35 percent of the first $10,000
in qualified wages paid in the first year and 50 percent of the
first $10,000 in qualified wages during the second consecutive year
of employment. Employers must submit appropriate forms within 21
days of hiring. Consult the Agency for Workforce Innovation for more
information.
Work
Opportunity Tax Credit
This incentive is available to employers hiring welfare recipients
and individuals from other groups including food stamp recipients as
well as some veterans, vocational rehabilitation clients and people
receiving Supplemental Security Income. Employers can earn up to
$2,400 per employee in federal income tax credits. Employers receive
up to 40 percent of qualified wages for a maximum credit of $2,400
per employee for employees working more than 400 hours. For
individuals who work between 120 and 400 hours, employers are
eligible for tax credits of up to 25 percent. Employers should
complete a pre-screening notice (available from the Agency for
Workforce Innovation) before hiring a qualified applicant and must
complete ETA form 9061 (available from the Agency for Workforce
Innovation) if the employee has been conditionally certified by the
state. Additionally, a one-page form (such as payroll stubs or other
proof of employment) must be filed to document the employee's
eligibility. All forms must be filed within 21 days of employee's
start date. For additional information, contact the
Agency for
Workforce Innovation.
On-The-Job Training (OJT)
OJT is designed for an employer to hire and provide occupational
training to someone who might not be hired due to lack of skills or
experience. Workers trained by the company are traditionally more
likely to remain on a job, thus reducing future training costs. OJT
is encouraged and can be done in conjunction with classroom training
at local educational institutions. Employers can receive up to half
of wages paid to workers while in the pre-approved
on-the-job-training program. The OJT program is contracted for a
specific time and must meet the guidelines for participation. Any
OJT programs must be approved prior to start of employment and
training. Contact your One-stop career center for specific details
on how this program may assist your business in becoming more
productive.
Additionally, OJT contracts must have full time employment, with
full-time employment for a minimum of one year after training; meet
regional standards and report wages to the State of Florida.
Reimbursements are limited to a maximum of six months
and may not exceed the time required to acquire the skill needed for
the position.
Contact
Jobs ETC
for more information.
Work
Supplementation
Work supplementation or grant diversion allows cash assistance
benefits to be paid to an employer for a specified period of time as
an incentive to hire the individual into their regular workforce.
Employment must be full-time at a rate at least equal to the federal
minimum wage and should lead to long-term, unsubsidized work.
Enterprise
Zone Incentives
Businesses located in an Enterprise Zone may be eligible for various
tax credits if they hire new employees from groups including welfare
recipients and graduates of Workforce Investment Act classroom
training programs. Businesses can claim a percentage of the
employee's wages against either their corporate income tax or to
offset property or sales tax on building materials and business
equipment. For additional information, contact Enterprise
Florida.
Please
be advised that all tax credits and incentives are subject to
legislative and/or congressional action. For current status
information, please contact the local Jobs ETC office.
Your
next job is our whole job!
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