Tax Rebate | Nataliya Vaitkevich by Pexels
Tax Rebate | Nataliya Vaitkevich by Pexels
The North Carolina Department of Commerce issued more than 91,000 Work Opportunity Tax Credit (WOTC) certifications to employers in 2022, the department’s Workforce Solutions division announced today. That represented a more than 13 percent increase in the number of certifications compared to the 2021 calendar year, indicating that more people found jobs thanks to the financial support the program provides to employers.
A federal tax credit, the WOTC serves as an incentive for companies to hire qualified people with significant barriers to employment. In North Carolina, the Division of Workforce Solutions (DWS) administers WOTC and determines eligibility for the target groups of jobseekers.
According to the newly released data, DWS awarded certifications to employers hiring 91,322 new employees during the 2022 calendar year. Those certifications allowed employers to potentially claim up to $241,739,400 in tax credits. During 2021, DWS awarded 80,144 certifications for a maximum potential tax credit of $200,400,800.
“As part of our First in Talent Plan, North Carolina is working to bring more people into the labor force, and the Work Opportunity Tax Credit is one tool we can use to help achieve that goal,” said N.C. Commerce Secretary Machelle Baker Sanders. “We look forward to encouraging even more businesses to use this important tax credit, because it supports their own success and that of their communities.”
After receiving a certification from DWS, employers may then apply for the tax credit with the Internal Revenue Service (IRS). A business can claim from $1,200 to $9,600 for each eligible employee, depending upon the target group of the person hired, the wages paid to that worker in the first year of employment, and the number of hours worked.
Among those who may qualify for the WOTC are certain veterans, recipients of public assistance, people with felony convictions, people with disabilities, and the long-term unemployed. Only new hires are eligible.
For more information, employers should visit www.commerce.nc.gov/grants-incentives/workforce-grants/work-opportunity-tax-credit or contact a local NCWorks Career Center through www.NCWorks.gov or 1-855-NCWorks (855-629-6757).
Original source can be found here.
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