FOR
IMMEDIATE RELEASE: June 13, 2003
OESC
OFFERS REWARDS
OKLAHOMA CITY, OK –
Looking for an additional tax credit or two? According to the Oklahoma
Employment Security Commission, state employers may benefit from two
little-known tax credit plans.
Through the Work Opportunity Tax Credit (WOTC), Oklahoma employers are offered credit against their federal tax liability as an incentive to hire individuals who are members of targeted groups that traditionally have faced significant barriers to employment. These targeted groups are:
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IV-A recipients (Aid to Families with Dependent Children, or its successor, Temporary Assistance to Needy Families) |
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Qualified Summer Youth program participants age 16-18 |
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Qualified food stamp recipients |
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Vocational rehabilitation referrals |
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Qualified veterans |
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High-risk youth between the ages of 18-24 |
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Qualified ex-felons |
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Supplemental Security Income recipients |
WOTC
allows employers to receive up to a 40 percent credit of the first $6,000
in qualified first-year wages of employees working at least 400 hours or
more, for a maximum credit of $2,400.
The other option is a 25 percent credit of the qualified first-year
wages up to $6,000 for employees working at least 120 hours, but less than
400 hours, resulting in a maximum credit of $1,500. Created by the Small
Business Job Protection Act of 1996, the WOTC program was originally
authorized for a 12-month period but has been extended via various acts,
most recently the Job Creation and Worker Assistance Act of 2002.
(TANF) recipients.
Employers can receive a tax credit of up to 35 percent of the first
$10,000 in qualified first-year wages and 50 percent of the first $10,000
in qualified wages for the second year of employment.
The total maximum credit
an employer can receive is $8,500 per new hire. Before claiming the
credit, the employer must obtain certification of a worker’s eligibility
as a member of a family receiving long-term family assistance benefits.
There is no limit in either program on the number of employees for whom
the employer can claim the credit. Last year, the total potential credit
approved for Oklahoma employers was over $16.7 million.
For more information,
employers may call the OESC WOTC/WtW Coordinator at 405-557-5371, or visit
the OESC website at www.oesc.state.ok.us.
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