The federal government wants people re-employed. There are several tax credits available from the federal government that your business can utilize.
Work Opportunity Tax Credit (WOTC) - An employer may qualify for a tax credit of up to $9,000 per employee if the employee is a member of a designated target group and meets that group's specific requirements. Application must be completed and submitted within 28 days of hire.
New Hire Retention Tax Credit - This tax credit encourages the retention of new hires (retained workers). The employer may claim the credit for each retained worker. $1,000 or 6.2% of wages (as defined for income tax withholding purposes) paid by the employer to the retained worker during the 52 consecutive week period.
Small Business Health Care Tax Credit - This tax credit is worth up to 35% of a small business' premium costs (25% for tax-exempt employers). On Jan. 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers). It makes it more affordable for employers with low and moderate income workers afford to offer health insurance coverage to employees.
For more information about these incentives go to the Site Selection Incentives page on our website.