brg_admin | Jul 1, 2019 | 0
(Dis)abilities + Work + Beaverton = No Problem! Help Put Beaverton to Work, How to earn Federal Income Tax Credits for hiring new employees
By Dirkse CC Team
Did you know there is an opportunity for Oregon businesses to receive a Federal income tax credit and reduce their tax liability each year? The program is called “Work Opportunity Tax Credit” and is available as an incentive to employers to encourage the hiring of individuals who face barriers to employment. These barriers include people in the following target groups: Veterans, TANF, SNAP, SSI and Unemployment recipients, and individuals with disabilities referred through The State of Oregon, Department of Vocational Rehabilitation. The amount of the tax credit varies depending on the target group, the wages paid and the number of hours worked during the first year of employment. The maximum tax credit on first year wages is between $1,200 and $9,600; quite a substantial incentive to put people in our community to work!
The process is simple and outlined completely with required documents on the State of Oregon website: www.oregon.gov/EMPLOY/Businesses/Pages/Work-Opportunity-Tax-Credit.aspx
Important points to remember:
- A Pre-Screening Notice and Certification Request for the Work Opportunity Credit, Form 8850 must be completed on the day of the job offer with signatures appearing in ink or pencil, or signed electronically.
- If the new employee indicates potential WOTC eligibility on page one of Form 8850, complete page two of this form.
- Have the new hire complete ETA Form 9061 (Individual Characteristics Form) after they start.
- Request certification by following the link to the online WOTC portal and entering the information collected on the 8850 and 9061 within 28 days of the time the applicant starts work (or submit via mail.)
- An untimely application will result in the denial of the certification request.
- Keep copies of the documents mailed and the determination letter received.
Local business owner, Donny Bradetich of HDE Home Care says the incentive is “a nice cash infusion around tax time”. HDE is in the business of connecting seniors and people with disabilities to professional caregivers in Beaverton and the Portland Metro areas. Donny believes there is “value out of putting people to work” and finds that many of his hires who qualify for the tax credit are very eager and willing to work. The hard costs are fixed but this tax credit is a “bonus to the business”.
Dirkse Counseling and Consulting, Inc. works closely with local businesses like HDE Home Care educating about all of the benefits of hiring individuals with barriers to employment. Their specific mission is to improve lives and strengthen the community by bridging the gap between job seekers with disabilities and local businesses.
For more information on WOTC or to become a more diverse and inclusive employer; contact Cindy Bahl, Business Development Manager at Dirkse CC @ 503-258-7715.