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Measuring our value by the tax dollars we save. |
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Hromiko & Associates, LLC |
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August Kollner |
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The Work Opportunity Tax Credit (WOTC) and the Welfare to Work (WTW) Tax Credit programs provide an incentive for private, for profit businesses to hire individuals who are members of various targeted groups (see below). The WOTC generates a maximum one-year credit of $2,400 per eligible employee. The WTW can generate up to $8,500 per employee during two years of employment. Like many hiring-based incentives, these programs require businesses to collect relevant information from employees and obtain a certificate of eligibility from the regional WOTC Center for each employee. |
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The WOTC and WTW programs apply only to new employees. To be eligible, the new employee must belong to one of nine target groups. However, most businesses already hire qualifying employees. It is not necessary to change your hiring practices to benefit from these programs. Target groups include: |
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· A member of a family that is receiving or recently received Temporary Assistance to Needy Families (TANF) or Aid to Families with Dependent Children (AFDC). Long-term TANF recipients are eligible for the WTW program. · An 18-24 year old member of a family that is receiving or recently received Food Stamps, · An 18-24 year old resident of one of the Federally designated Empowerment Zones (EZs), Enterprise Communities (ECs), or Renewal Communities (RCs), · A 16-17 year old EZ/EC or RC resident hired between May 1 and September 15 as a Summer Youth Employee, · A veteran who is a member of a family that is receiving or recently received Food Stamps, · A disabled person who completed or is completing rehabilitative services from a State or the U.S. Department of Veterans Affairs, · An ex-felon who is a member of a low income family, · A recipient of Supplemental Security Income (SSI) benefits, and/or · The New York Liberty Zone Business Employee (requires no certification). |
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We invite you to contact us: Hromiko & Associates, LLC Po Box 60732 Sacramento, CA 95821
Phone: (916) 284-8001 Fax: (916) 290-0345 E-mail: inquire@hromiko.com |
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Copyright 2006 by Hromiko & Associates, LLC Updated 10-26-2006 |