CAREERS helps eligible employers learn about and apply for any tax credits or monetary give-backs for which they may qualify. These are some of the ways employers can benefit by hiring individuals with disabilities:
Work Opportunity Tax Credits (“WOTC”)
This federal program is designed to encourage employers to hire people with disabilities and gives direct tax credits to private employers who create job opportunities for qualified people. The WOTC provides employers with a federal tax credit of up to $2,400, or a maximum of 40% of the first $6,000 in qualified first year wages paid to a worker with a disability.
Workers with Disabilities Employment Tax Credit (“WETC”)
This is a New York State initiative by which employers can receive a NYS tax credit of up to $2,100 for each individual hired. The tax credit equals 35% of the employee’s first $6,000 in qualified wages, paid during the second year of employment. The employee must be certified as disabled by Adult Career and Continuing Education Services – Vocational Rehabilitation (ACCES-VR) and must have worked full-time for at least 180 days or 400 hours.
NYS Workers with Disabilities Tax Credit
The Workers with Disabilities Tax Credit program provides a NYS tax credit to certified for-profit businesses that hire individuals with developmental disabilities. For eligible individuals hired full-time (30 hours or more per week), the tax credit is based on 15% of that individual’s annual wage, not to exceed $5,000. For eligible individuals hired part-time (8 to 29 hours per week), the tax credit is based on 10% of that individual’s annual wage, not to exceed $2,500. The tax credit program is set to expire on January 1, 2020. Complete details regarding this tax credit can be found at NYS Department of Labor website.
Disabled Access Tax Credit
Businesses with fewer than 30 employees and no more than $1 million in gross receipts in the preceding year can receive a tax credit of up to 50% of “eligible access expenditures”—eligible expenses include the removal of barriers —architectural, communication, or transportation—including modification of equipment and the use of interpreters, taped text, or alternative format for communication.
Work Try-Out
A Work Try-Out (available through the New York State Education Department/ACCES-VR) provides employers with 100% wage reimbursement, requires minimal paperwork, can be approved in 3 days, and can last up to 480 hours of work. The purpose of the program is to allow individuals with little or no work experience the opportunity to try out jobs. The goal is for the Work-Try-Out to lead to permanent employment. On-site support may be available from CAREERS Employment Specialists.
On-the-Job Training Monetary Incentive Program
On-the-Job Training (“OJT”) is designed to provide an individual with disabilities the skills necessary to perform a particular job, and affords employers the benefit of receiving reimbursement for part of wages paid. CAREERS Employment Specialists help develop and implement the plan, and advocate for both the employer and the employee. During the training period of up to four months, the trainee is placed on the employer’s payroll and must receive the same benefits as other employees. The trainee is paid normal entry-level wages for that job, and the employer is reimbursed by ACCES-VR for this wage on a decreasing scale. Upon completion of this training period, it is expected that the trainee will have the skills to be hired permanently.
