Hiring individuals with disabilities may have financial benefits for your company. Some of these incentives include:
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring and employing individuals from certain target groups, who have significant barriers to employment. The WOTC credit is a general business credit provided under section 51 of the Internal Revenue Code that is administered by the IRS and the Department of Labor. The WOTC is equal to 40% of up to $6,000 of wages paid to the individual. The maximum tax credit is generally $2,400. To qualify for the WOTC tax credit, new hires must have been referred by a Vocational Rehabilitation agency. (In the state of Ohio, this agency is Opportunities for Ohioans with Disabilities)
This tax credit applies to persons with physical or mental disability and has been referred while receiving or upon completion of rehabilitative services pursuant to:
1. A state plan approved under the Rehabilitation Act of 1973
2. An Employment Network Plan under the Ticket to Work program
3. A program carried out under the Department of Veteran Affairs
Applying for the tax credit is easy, but it is important to remember
1. On or before the day that an offer of employment is made, you and the job applicant must complete the pre-screening notice and certification request for the work opportuntiy tax credit (IRS form 8850).
2. You must submit the completed form to the Ohio Department of Job and Family Services within 28 days of the individuals first date of employment with your company.
To learn more about WOTC, click HERE
to visit the IRS website or to request access to the online application click HERE
to visit the Ohio Department of Job and Family Services WOTC page.
The Disabled Access Credit
provides a non-refundable credit for small businesses that incure expenditures for the purpose of providing access to persons with disabilities. An eligible small business is one that earned $1 million or less or had no more than 30 full time employees in the previous year. If qualified, they may take the credit each and every year they incur access expenditures. Click HERE
to learn more about this credit.
The Barrier Removal Tax Credit
is a tax deduction which encourages businesses of any size to remove architectural and transportation barriers to the mobility of persons with disabilities and the elderly. Businesses may claim a deduction of up to $15,000 per year for qualified expenses of items that normally must be capitalized.
Businesses may use the Disabled Access credit and the Barrier Removal Credit together in the same tax year, if the expenses meet the requirements of both sections. Click HERE
to learn more about this deduction.