NYS Employee Related Tax Credits | Construction Personnel Group, Inc.

WOTC (Work Opportunity Tax Credit) Federal tax credit based upon wages paid to the individual during the first year of employment. Employer is eligible to receive a tax credit of up to $2400 (40% of qualified first-year wages for those employed 400 or more hours; 25% for those employed at least 120 hours. Qualified wages capped at $6,000.) WOTC is available for full and part time workers.

WETC (Workers with Disabilities Employment Tax Credit) NYS tax credit similar to the WOTC and based upon wages earned during second year of employment. Employer is eligible to receive a state tax credit of up to $2100. (35% of the first $6,000 in wages paid during the second year of employment.) WETC is available only for full time workers.

Call 1-800-472-8612 for more information about the WOTC and WETC. Also, check the NYS Department of Labor website at http://www.labor.state.ny.us. Enter “WOTC” or “WETC” into the search box. You will find explanations of WOTC and WETC and other tax incentive programs.

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These are the other hiring incentives which can only be used if the job is permanent:

WAGE REIMBURSEMENTS

WTO (Work Try Out) A VESID sponsored wage reimbursement program, maximum 160 hours of employment in length. The employer receives 100% of gross wages in exchange for allowing a worker to try out a job. The employer is free to retain the employee at the end of the WTO period.

OJT (On the Job Training) A VESID sponsored program, maximum 26 weeks in length. Employer agrees to hire and train an individual for a specific job in exchange for reimbursement of gross wages. The employer receives 100% reimbursement during the first half of the OJT, and 50% in the second half. Length of OJT determined by agreement between VESID counselor and employer based on employee need.

If you have questions about the Wage Reimbursements, please call Katherine Grace, at 716-848-8045.