Welfare to Work Incentives

Transitioning Welfare Workers.  The federal government currently provides two major tax incentives for employers who hire former welfare recipients:

Employers may receive tax credits of up to $8,500 per employee for hiring welfare transition clients

Welfare-to-Work Tax Credit:
By actively recruiting welfare-to-work recipients, you can expand your job applicant pool of entry-level workers and at the same time, make an important contribution to a national effort that affects Brevard County.  Employers may receive tax credits of up to $8,500 per employee for hiring welfare transition clients who work at least 400 hours (the equivalent of 10 full-time weeks) per year.

Save your business up to 40 percent of qualified wages in federal income taxes

Work Opportunity Tax Credit:
This incentive, available to employers who hire welfare transition participants, can save your business up to 40 percent of qualified wages in federal income taxes to a maximum of $2,400 per employee working more than 400 hours.  For individuals working between 120 to 400 hours, the tax credit is as much as 25 percent.

Employers must complete a pre-screening notice (IRS Form 8850) before hiring a qualified applicant and must complete ETA Form 9062 from the employee if he/she has already been conditionally certified by the state.

Additionally, a one-page form (such as payroll stubs or other proof of employment) must be filed to document the employee’s eligibility.

To find out if your business is eligible, take this easy step.  If you do not currently have a business relationship with Brevard Workforce, fill out our EASY CONNECT and be sure to include that you are interested in hiring incentives to transition welfare recipient(s) to work.