TAX CREDITS FOR HIRING PERSONS WITH DISABILITIES

The Work Opportunity Tax Credit (WOTC) provides a tax credit for employers hiring individuals from certain targeted groups including: low-income, vocational rehabilitation referrals, former AFDC recipients, veterans, ex-felons, food stamp recipients, summer youth employees, and SSI recipients. The credit is used to reduce the federal tax liability of private-for-profit employers.

HOW DOES IT APPLY TO PERSONS WITH DISABILITIES?

An employer who hires an employee receiving Supplemental Security Income (SSI) or who is a certified vocational rehabilitation (VR) participant may claim the WOTC after certification is received from the State Employment Security Agency (SESA).

WHAT IS THE AMOUNT?

An employer may take a tax credit of up to 40 percent of the first $6,000 in first year wages per qualifying employee. The maximum per employee credit is $2,400 in a given tax year. This credit applies only to employees who work at least 400 hours during the tax year. With respect to qualified summer youth employees, the maximum credit for each is $1,200 (40 percent of the first $3,000 of first year wages.)

WHAT ARE THE MINIMUM EMPLOYMENT REQUIREMENTS?

Employers can receive a partial credit of 25% for certified employees who worked at least 120 hours, but less than 400 hours during a one year period. No credit is available for employees who work less than 120 hours.

HOW DO I CLAIM THE CREDIT?

Complete and submit IRS Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity and Welfare-to-Work Credits, to your local SESA.

Form 8850

Welfare-to-Work Credit Form

Work Opportunity Credit Form

HOW DOES IT WORK?

The employer determines likely eligibility by including the WOTC Pre-Screening Notice as part of the application process.

The Pre-Screening Notice must be signed by the employer and employee and mailed to the SESA within 21 days after the employee begins work.

The employer documents eligibility (based on information received from the employee) and submits documentation to the SESA.

SESA certifies which individuals are eligible for WOTC, and notifies the employer in writing for purposes of filing the tax credit

Our Job Placement Results

Since 1965, we’ve successfully placed countless individuals into meaningful employment. Take a look at some of the organizations who have hired from ECVC.

501 Fresh • The Action Group • Aeropostle • Alliance One • Ann’s House of Nuts • Aramark • Arby’s • ASG • Atlantic Care, Inc. • Atlas Cleaning • Best Western • Boli’s On The Boulevard • Bojangles • Burger King • Burlington Coat Factory • Candlewood Inn • Champion Fitness • Cherry’s Tree Service • Christ Presbyterian Church • CiCi’s Pizza • City Hotel • The City of Greenville • Comfort Inn • Cracker Barrel • Cubbie’s • Daily Reflector • Domino’s • FedEx • Food Lion • Golden Corral • Golden Living • Greenville Convention Center • Habitat for Humanity • Harmony House Foods • Holden Temporaries • Holiday Inn • Hope Station • International House of Pancakes (IHOP) • Jimmy John’s • Kentucky Fried Chicken • Kinetic Physical Therapy • Logan’s Steak House • Lowes Foods • Maxway • McDonald’s • MegaForce • Mellow Mushroom • Michael’s • Microtel • Minges Bottling Company • My Sister’s Closet • Morgan’s Tavern & Grill • New River Pottery • O’Charley’s • Olive Garden • Papa John’s • PCMH • Piggly Wiggly • Pizza Inn • Quality Inn • Ray Of Hope • Rep Express • Sally’s Kindercare • Sam’s Club • Save-A-Lot • The Sea Horse • Secure Watch • Seniors Living at Home • Sheetz • Sonic • Southern Living • Taco Bell • Target • Toy’s R Us • Walgreens • Wendy’s • Winslow’s Tavern