Tax Incentives for Employers
Businesses may be eligible for tax incentives if they make structural improvements for the benefit of employees or customers with disabilities. In such a case, the employers can receive tax incentives. This article talks about WOTC and Disabled Access Credit.
Let’s look at the concepts here:
Work Opportunity Tax Credit (WOTC): Employers may qualify for this credit if they hire individuals from specific target groups. These groups are defined as the group of people who have consistently faced significant barriers to employment. To be able to qualify for this credit, employers use Form 8850 to request that the state workforce agency in the state in which their business is located, certify an individual as a member of a targeted group.
Disabled Access Credit: Small businesses that incur expenditures in order to provide access to persons with disabilities are eligible for a non-refundable credit of up to $5,000. Small businesses are considered eligible if their annual revenue is less than $1 million or they have fewer than 30 full-time employees, and they can claim the credit each and every year they incur access expenses. Information about eligible expenditures can be found on Form 8826, Disabled Access Credit.
In the case you would require to know more, a piece of detailed information is available on the Internal Revenue Service (IRS) website.
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Key Takeaways
A business may qualify for tax incentives if it makes structural improvements to benefit employees or customers with disabilities.
Work Opportunity Tax Credit or WOTC qualifies the employers for credit if they hire people belonging to specific target groups. Form 8850 is used by employers to qualify for the Work Opportunity Tax credit.
Small businesses that incur expenditures in order to provide access to persons with disabilities are eligible for a non-refundable credit of up to $5,000.