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March 2007, Issue 19

Subject: March FirstFacts Employer E-Update

FirstFacts

Welcome to IndependenceFirst’s FirstFacts monthly e-newsletter containing Employer Updates about the advantages of diversifying your workforce by hiring people with disabilities! It’s a quick read with useful tips for business…

FirstFacts for March:

Attention Employers! Could you be eligible for a tax credit? Here is some information on the Work Opportunity Tax Credit (Internal Revenue Code Section 5 abbreviated below as "WOTC") that is available to employers for hiring specific targeted low-income groups including people with disabilities who are referred from vocational rehabilitation agencies and people who receive Supplemental Security Income.

  • Employers could be eligible for an annual tax credit for up to $2,400 for each qualifying employee who works at least 400 hours during the tax year. Additionally, a maximum credit for $1,200 may be available for each qualifying summer youth employee.
  • The WOTC is a tool that is designed to help people move from a low-income group and gain on-the-job experience. It joins other education and job training initiatives and targeted tax credits that help American workers prepare for good jobs; ease the transition from job to job; and create high performance workplaces.

How can employers participate in WOTC?

To receive certification that a new employee qualifies the employer for this tax credit, the employer must:

  • Complete the one page IRS Form 8850 by the day the job offer is made.
  • Complete either the one page ETA Form 9061 or Form 9062
  • If the new employee has already been conditionally certified as belonging to a WOTC target group, complete the bottom part of ETA Form 9062 (and sign and date it), that he or she has been given by a State Employment Security Agency or participating agency, e.g., a Job Corps center.
  • If the new employee has not been conditionally certified, the employer and/or the new employee must fill out and complete, sign and date ETA Form 9061
  • Mail the signed IRS and ETA forms to the employer's State Workforce Agency. The IRS form must be mailed within 21 days of the employee's employment-start date.

To get IRS Form 8850, the Work Opportunity and Welfare-to-Work Tax Credits Pre-Screening Notice and Certification Request, and instructions, download from http://www.irs.ustreas.gov/ or call 1-800-829-1040.

Some useful forms and documents for download are listed below.

You can also get this form and materials by visiting www.uses.doleta.gov/tax.asp

FOR MORE INFORMATION ABOUT THE WOTC

Call Karin Loverud at the Internal Revenue Service (IRS) at 202-622-6080 V/Relay

Find information about EZ/EC/RC or call 1-800-998-9999 V/Relay.
Source: US Department of Labor.

The numbers of persons with disabilities are growing. Businesses who tap into the power of people with disabilities will find a previously untapped marketforce, workforce, and group that contributes to the diversity of the community.

If you want more information on employing people with disabilities or about the employer services offered by IndependenceFirst, please email firstfacts@independencefirst.org or call (414) 291-7520 and ask for the Benefits and Employment Department. For more info visit www.independencefirst.org



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