Washington businesses to get $43 million tax break on 2010 taxes
OLYMPIA - Washington employers will save an estimated $43 million in federal taxes in 2010 because they hired certain hard-to-place job seekers.
The Work Opportunity Tax Credit provides up to $2,400 in tax savings per worker to businesses that hire veterans, the disabled, ex-inmates, food-stamp recipients and those who receive Supplemental Security Income.
"This tax credit is an incentive for businesses to hire individuals who have a particularly hard time finding work," said Paul Trause, commissioner of the Employment Security Department. "It's a good tool for reducing hiring costs."
To receive the tax credit, the employee must work a minimum of 400 hours during the first year of employment and earn at least $6,000. Additionally, businesses that hire long-term welfare recipients can save as much as $9,000 per person over two years.
The Work Opportunity Tax Credit is obtained by submitting an application to the Washington State Employment Security Department, which works with other governmental agencies to certify the eligibility of hired workers.
The department received more than 47,000 applications for the 2010 credit from 3,800 Washington businesses, a 13 percent increase in participation from 2009. Additionally, some 16,800 workers were certified as eligible for the credit in 2010.
Businesses certified for the credit must complete IRS Form 5884 when submitting their federal income taxes.
Employers that want to participate in the program should contact their local WorkSource office or call 800-669-9271 or visit www.worksource.wa.gov/taxcredits.
Employment Security Department/FOR IMMEDIATE RELEASE - Jan. 20, 2011/#11-003/Media contact: Bill Tarrow, deputy communications director, 360-902-9376
Audio link: http://www.esd.wa.gov/newsandinformation/releases/audio/index.php
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