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Work Opportunity Series- Non Profit Credits Available!

By Woods & Durham, Dec 8 2017 06:00PM

Tax-exempt nonprofit organizations can also take advantage of the Work Opportunity Tax Credit (WOTC). A nonprofit can qualify for the tax credit, by being hiring a “qualified” veteran. The credit can be used against the nonprofit’s Federal payroll tax liability. The maximum credit is $6,240 per eligible employee.

Requirements:

1. The employee previously served in the military

2. The employee is considered a Qualified Veteran. To be considered “qualified” the employee must meet one of the following:

• The employee is unemployed for a period of at least 4 weeks before being hired

OR

• The employee is unemployed for a period of at least 6 month before being hired

OR

• The employee is entitled to compensation for a service connected disability and is hired not more than a year after leaving the military

OR

• The employee is entitled to compensation for a service connected disability, has been unemployed for at least 6 months and is hired no more than a year after leaving the military

OR

• A member of the employees family has received SNAP benefits/food stamps for at least 3 months during the previous 15 months before being hired

3. The employee is a new hire, not a rehire

Reminders

Proper documentation must be submitted for approval no later than 28 days after hiring a qualifying employee.

Other classes of employees that may qualify for the WOTC are Veterans, TANF (Temporary Assistance for Needy Families) Recipients, SNAP (Food Stamp) Recipients, Designated Community Residents (employees 18-39 years old living in a designated rural renewal county), Vocational Rehabilitation Referrals, Ex-Felons, and SSI (Supplemental Security Income) Recipients.

More info can be found at, https://www.doleta.gov/business/incentives/opptax/

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