Federal & State Hiring Credits

Supporting and hiring statistically disadvantaged professionals from differing backgrounds may be part of your business culture and values, but it could also help you increase your cash flow and reduce federal income tax liability.

The federal government and several states allow businesses to claim tax credits for certain eligible individuals and for conducting business in specifically designated areas.

Leveraging these credits without insight from experienced advisors can be a time-consuming process that poses administrative burdens. Confidently pursue credits and put money back into your business with guidance from our professionals.

Credit and savings opportunities

There are many credit opportunities to pursue at both the federal and state level, but your business and employees must meet certain requirements.

Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) — a federal credit distributed at the state level — is designed to encourage businesses to hire individuals receiving government assistance to enable them to become more self-sufficient.

Savings range

Maximum available credits can range from $2,400 to $9,600 per new employee, depending on how the employee qualifies.

• Credit value is determined by:
• The group under which the employee qualifies
• Number of hours worked
• Wages earned during the employment period

Eligible employees

Potential eligible employee groups include:

• Members of families that receive Supplemental Nutrition Assistance Program (SNAP) benefits, long-term Temporary Assistance to Needy Families (TANF), or Aid to Families with Dependent Children (AFDC)
• Qualified unemployed or disabled veterans
• Qualified ex-felons or pardoned, paroled, or work-release individuals