The latest numbers released by the Tennessee Department of Labor and Workforce Development (TDLWD) indicate 2017 is on pace to be a record-breaking year for the Work Opportunity Tax Credit (WOTC) program in Tennessee. According to the report issued July 11, the department’s Workforce Services Division has awarded $5 million more in tax credits in the first 6 months of 2017 than they did in all of 2016. This year, TDLWD has granted more than $215 million in tax credits for employers, which represents an average of $2,583 per qualified new hire.
Work Opportunity Tax Credits save Tennessee businesses thousands of dollars in employee-related taxes by reducing the company’s liability for eligible employees. The TDLWD estimates that on average, 10 – 15% of all new employees may qualify for a tax credit.
As TDLWD Commissioner Burns Phillips explained, this program helps both employer and employee. “The amount of funding the Work Opportunity Tax Credit offers Tennessee employers can be of an enormous benefit to a company’s financial situation, while at the same time helping an individual who is struggling to find meaningful employment,” said Phillips.
The WOTC provides federal tax credit incentives to employers who hire eligible individuals. A company can receive $1,500 – $9,600 per approved employee in tax credits.
Want to know how much your business can save?
Give me a call at 615.309.2685 or download our WOTC Guide for more information.