New Hires From Targeted Groups
The welfare to work Credit encourages employers to hire recipients of long-term family assistance.
Administered under Work Opportunity Credit Tax, this credit is equal to 35 percent of the first $10,000 of eligible wages paid to employees (members of targeted groups), in the first year of employment.
In the second year of work, the credit is 50 percent of the first $10,000 of eligible wages.
Welfare to Work Credit Form
In order to claim a credit for an employee, use the Form 5884 (Pre-Screening Notice and Certification Request for the Work Opportunity Credit and Welfare to Work Credits)
For each new job applicant, an employer needs to fill out the Form 8850 under the WOTC coordinator assistance within 28 days after the first day of work.
Tax News Updates:
Romney's lamest gambit yet
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Should We Subsidize Work?
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David Cameron considers extra £25bn of welfare cuts
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Welfare cuts create 'grave concern'
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