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Federal Tax Credit in MA is your company Eligible and Compliant?

By July 6, 2011 February 19th, 2015 No Comments

Did you know that if you’re a “for-profit” employer in Massachusetts, you may be eligible for a federal tax credit through the Work Opportunity Tax Credit program (WOTC)?

Essentially, the WOTC program was developed to help qualifying individuals get a job.  Employers who hire a qualified individual will be entitled to a credit on their federal taxes.

According to the Executive Office of Labor Workforce and Development (EOLWD), qualifying individuals include:

-A member of a family that is receiving or has received Transitional Aid to Families with Dependent Children (TAFDC) benefits or Temporary Assistance to Needy Families (TANF) for any 9 months during the 18-month period that ends on the hiring date.
-A veteran who is a member of a family that is receiving or has recently received food stamps and certain qualified disabled veterans.
-A recently released ex-felon.
-An 18 to 39 year old resident of one of the 105 federally designated Empowerment Zone/Renewal Communities.
-A vocational rehabilitation referral who completed or is completing rehabilitative services from the Commonwealth of Massachusetts, an Employment Network, or the U.S. Department of Veterans Services.
-A 16 to 17 year old Empowerment Zone/Renewal Community resident hired between May 1 and September 15 as a Summer Youth Employee.
-An 18 to 39 year old member of a family that is receiving or has recently received food stamps.
-A recipient of Supplemental Security Income (SSI) benefits.
-A recipient of long term family assistance.

The credit may be up to $1,200 for a hired summer youth, $2,400 for a newly hired adult and $4,800 for a newly hired disabled veteran.

Prescreening is required and the employer and the qualified worker must sign form 8850, the
Pre-Screening Notice and Certification Request for the Work Opportunity Credit.  Act quickly because these forms must be sent to the Division of Career Services within 28 days of his/her’s first day of work.

Find out more by visiting EOLWD website at www.mass.gov.

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508-339-1300 for more information call today!.