Newspaper article THE JOURNAL RECORD

Saving Money Via Tax Credits

Newspaper article THE JOURNAL RECORD

Saving Money Via Tax Credits

Article excerpt

OKLAHOMA CITY (JR) -- Two little-known tax credit plans can save Oklahoma employers money, Oklahoma Employment Security Commission officials have announced.

The first program is the Work Opportunity Tax Credit, a credit offered to employers as an incentive to hire individuals who are members of targeted groups that traditionally have faced significant barriers to employment. It is an expanded version of what was available earlier in the year and concluded Sept. 30.

Now, WOTC is re-authorized for a nine-month period through June 30. Employers can receive a tax credit of as much as 40 percent of the first $6,000 in qualified first-year wages for a maximum credit of $2,400. Through the WOTC procedure, employers are offered credit against their federal tax liability for hiring individuals from eight target groups that traditionally have had difficulty obtaining and holding jobs. They include: * IV-A recipients (Aid to Families with Dependent Children or its successor Temporary Assistance to Needy Families). * Qualified food stamp recipients. * Qualified veterans. * Vocational rehabilitation referrals. * Qualified ex-felons. * High-risk youth between the ages of 18 and 24. * Supplemental Security Income recipients. * Qualified Summer Youth program participants, aged 16 through 18. "We are finding that the expanded WOTC program is much more precise than it was earlier," OESC program supervisor Richard Brown said. "WOTC can work for both the employer and the employee." To claim the tax credit against "qualified wages" paid to an employee, an employer must complete the newly revised IRS Form 8850 and the applicable Department of Labor form, either ETA Form 9062 or revised ETA Form 9061. Even employers who cannot qualify for the maximum credit can receive a partial credit of 25 percent of the first $3,000 in qualified first-year wages paid during the 90-day summer working period. …

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