The primary benefit of hiring is that you add an excellent employee to your team. In some cases, your company can get a tax credit or a grant for hiring individuals from certain populations thanks to government programs. It’s a win-win for employers: they hire someone to fill a needed position while receiving a financial incentive. Meanwhile, the government is helping qualified candidates who have faced barriers to employment find meaningful work.
Interested in hiring an employee who helps you qualify for one of these programs? Below is a summary of how your business can qualify.
Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is a federal tax credit that rewards employers for hiring people from certain groups. Designated groups have historically faced significant barriers to employment. The purpose of the program is to encourage workplace diversity and to help place qualified candidates in good jobs.
The types of employees eligible for WOTC cover a wide variety of situations, including:
- Qualified IV-A recipient: An individual who receives assistance under title IV part A of the Social Security Act relating to Temporary Assistance for Need Families.
- Qualified veteran: There are several conditions that can qualify an employer for hiring a veteran. Instances include veterans who are part of the Supplemental Nutrition Assistance Program (SNAP), veterans who have been unemployed long-term and disabled veterans entitled to compensation.
- Ex-felon: An individual hired within a year of being convicted of a felony or of being released from prison for a felony.
- Designated Community Resident: An individual between the ages of 18 and 40 who lives in an Empowerment Zone, an Enterprise community or a Renewal community.
- SNAP recipient: An individual between the ages of 18 and 40 who have received SNAP assistance in the past six months.
- Qualified long-term unemployment recipient: An individual who has been unemployed for no less than 27 weeks at the time of hiring and received unemployment at some point during that time.
Credits for improving access for disabled employees
There are two credits related to improving workplace access for disabled employees. The Disabled Access Credit provides small businesses with a non-refundable credit for any expenditures related to providing access to persons with disabilities. The Barrier Removal Tax Deduction incentivizes businesses of all sizes to remove architectural and transportation barriers. While these credits benefit changes you make for disabled employees – allowing you to widen your candidate pool for hiring – the changes also benefit customers.
Minnesota Apprenticeship Initiative
In 2015, the U.S. Department of Labor granted the Minnesota Department of Labor $5 million for an apprenticeship initiative. The initiative is developing new apprenticeship programs in five industries: advanced manufacturing, agriculture, health care, information technology, and transportation. Registered employers receive $5,000 per apprentice to offset related costs.
If you’re interested in hiring employees that help you qualify for these credits, Award Staffing can help. We screen our applicants for the very best candidates to find you the perfect match. Contact us today to learn more.