Washington employers who hired “hard-to-place” job seekers last year earned $35 million in tax credits.
More than 4,300 Washington businesses were able to deduct what are called Work Opportunity tax credits from their 2009 federal income taxes for hiring people who need the most help finding work, according to a news release from the state Employment Security Department. These include the disabled, ex-felons, food stamp recipients, people on welfare and Social Security, unemployed veterans and people ages 16 to 24, who were not in school, not working and lacked skills to get a job.
Employers can reduce their taxes by up to $2,400 for each new qualified, adult hire, up to $1,200 for each youth hired for a summer job, $4,800 for disabled veterans and up to $9,000 over two years for long-term welfare recipient who are hired.
Businesses will get tax credits for 13,100 eligible last year, according to the ESD.
“We’ve seen a significant increase in applications since the program was expanded last year,” said Employment Security Commissioner Karen Lee. “The tax credit encourages and rewards employers for taking a chance and putting disadvantaged people to work.”
Employers who are interested in earning the tax credit in 2010 should visit their local WorkSource office or call 800-669-9271, then submit an application to the Washington State Employment Security Department within 28 days after the new employee starts work. Employment Security works with other governmental agencies to certify the eligibility of hired workers.