Blog Post: Employers Can Take Huge Tax Break in Hiring People with Disabilities

This tax break is available when hiring people with a legitimate mental or physical disability.

The saving are significant and can be VERY significant depending on the number of people hired. We are looking at

One hire $ 2400, Five hires $ 12,000, Ten hires, $ 24,000. Twenty hires, $ 48,000, One hundred hires, $ 240,000 dollars almost a quarter of a million dollar tax credit. What can you do with these additional funds to make your company prosper?

This is the WOTC. The Work Opportunity Tax Credit. Should the reason you hire someone simply be for the tax credit, of course not. It is just frosting on the cake. The reason to hire a person with a disability is they make great workers. They appreciate the job and they tend to be very loyal. The accommodation necessary for them to be successful most often varies from nothing to a little extra time in the beginning in training. You also get free consulting from someone like me after the hire to make sure the transition is a smooth one both for your company and the candidate. As an Employment Network for the Social Securities "Ticket to Work" program there is never a cost to you, or the candidates for using my services. Also you can be assured the people I represent have a certified disability.

Should you be an employer wanting to hire people with disabilities and want to take advantage of this tax break and the great people I represent feel free to call:

Steven K Gehrke

SKG Career Services

Your SSA’s Ticket to Work” Employment Network

www.yourtickettowork.com

Click on EN’s click on Colorado ( My company is the first listing)

720-231-8093

I have included below the web site to go to for more information on the WOTC program as well as a name and phone number of the contact people in charge of the program  should you have any questions on the tax break.

  WOTC INFO BELOW.

Work Opportunities Tax Credit – Go to the following website:

http://www.coworkforce.com/emp/taxcredits.asp

This website gives you all the information you will need, along with forms and procedures for completing the Work Opportunities Tax Credit. In short this is a federal program that allows employers to claim a tax credit for hiring persons who are registered with the State Division of Vocational Rehabilitation or an approved Employment Network via the Social Security Administrations “Ticket to Work” program. The employer can claim a maximum of $2,400 per hire. The credit is figured at 40% of the first year’s wages up to $6,000 if the individual works at least 400 hours during the year. (40% of 6,000 = 2,400). (The credit is 25% of wages if the person works at least 120 hours but less than 400 hours in the year). The paperwork needs to be completed within 28 days of the date of hire and includes two forms, the IRS 8850 and the ETA 9061, which are signed by the employer and the employee. These need to be sent to the Colorado Department of Labor and Employment. Address can be found at the website.

If you have any questions please contact us:

Ted Obrecht (State Coordinator)
Ph: 303-318-8829, Fx 303-318-8934
Em: ted.obrecht@state.co.us

Reina Wright (Federal Bonding Coordinator)
Ph: 303-318-8828, Fx 303-318-8934
Em: reina.wright@state.co.us

Colorado Department of Labor & Employment, WOTC Unit
633 17th Street, Suite 700, Denver, CO 80202
www.coworkforce.com/emp/taxcredits.asp

This tax credit of course is subject to change at any time.