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Wisconsin Hiring Incentives

On the Job Training Initiative – The Division of Vocational Rehabilitation (DVR) can provide up to 50% of the salary and fringe expenses, for up to 90 days, of a DVR referral that is hired by your company through our On-the-Job Training (OJT) Initiative.

Tax Credits – There are a number of tax credit programs that can help businesses reduce their Federal and State tax liability and increase profitability. The employer tax credit incentives can help businesses create jobs, improve their bottomline, boost local economies and help new employees obtain and retain jobs.

Employer Tax Credits

Work Opportunity Tax Credit – The Work Opportunity Tax Credit (WOTC) is a federal income tax credit that provides an incentive for private for profit employers to hire individuals of certain target groups, which have traditionally faced significant barriers to employment. These credits reduce an employer’s cost of doing business and require little paperwork. Employers can save up to $2,400 per new hire. For the Long-Term Family Assistance recipients, the employer can save up to $9,000 per new hire, over a two year time period.

Economic Development Tax Credits – Wisconsin’s Economic Development Tax Credits programs provide tax incentives to new or expanding businesses whose projects will affect distressed areas throughout the State. For more information contact the Department of Commerce.

WEDC Workforce Training Tax Credits – Tax Credits are available from the Wisconsin Economic Development Corporation to help companys improve the skills of the skills of their workforce and train new employees. These tax credits are administered on a per company basis to fit the needs of each company that is utilizing the credit. For more information, contact Mary Perry of the WEDC at 608-210-6740 or via email.

Employee Tax Credits

Help Your Employees Get More From Their Regular Paycheck!

Federal EIC – Federal EIC also has an “advance” feature (AEIC) which allows a portion of the anticipated credit to be included in the filer’s regular paychecks instead of the worker having to wait until they file their tax returns. This can be done at no cost to the employer. However, it is the responsibility of the employee, rather than the employer, to determine if he/she is eligible for the credits. The employee files a W-5 form with the employer to initiate the payments. The employer then adds the AEIC amounts to the worker’s net pay. The employer recoups the amounts of EIC advances by reducing the amount of payroll tax paid. Workers who are not raising children in their home are not eligible for the advance payments. The State EIC is not available in advance.

Earned Income Credit (EIC) – EIC is credited for lifting millions of children out of poverty and has helped close the poverty gap for single parents that are working. The money a poor working family receives via the tax credit can bring their total income above the poverty level. The EIC has also helped many TANF recipients escape welfare dependency and achieve self-sufficiency through paid employment. As welfare caseloads decline and a commitment to move TANF recipients into the low-wage labor market remains steady, the EIC makes work pay for low-income families struggling to raise their children out of poverty. Qualifying persons who file federal tax returns get back some or all of the federal income tax withheld from their pay during the year. Even workers whose earnings were too small to have taxes withheld can get the EIC. Families with children who claim the federal EIC are automatically eligible for the Wisconsin Earned Income Credit. The EIC may be claimed for up to 3 previous years, if a claimant was eligible. Individuals can claim the credit if their adjusted gross income and their taxable earned income will each be less than:

Child Tax Credit (CTC) – CTC is a federal tax credit for families with children under age 17. It is designed to lessen the impact of income taxes for families raising children. Qualifying persons who file federal tax returns get back some or all of the federal income tax withheld from their pay during the year. In addition, some workers whose earnings are too low to owe any taxes can get cash back from the credit.

Wisconsin Homestead Credit – Many low-income working families will qualify for the Wisconsin Homestead Credit. This credit is designed to soften the impact of property taxes and rent on persons with lower incomes. For individuals who pay rent, only a portion of the rent they pay is recognized the same as property taxes. The maximum credit available is $1,160. The basic requirements for Homestead relief relate to age and income. To qualify, a person must own or rent his or her residence, be at least 18 years of age, and have household income of not more than $24,500. In addition, the individual cannot have been a recipient of Temporary Assistance for Needy Families (TANF) or General Assistance payments during each of the twelve months in the filing year.