Under Illinois employment law, businesses who hire certain groups of employees could earn big tax credits this year.
According to the Illinois Department of Employment Security, employers who participate in the Work Opportunity Tax Credit program could earn up to $9,600 in federal tax credits for hiring certain groups of employees:
In addition to these federal credits, Illinois employers can earn substantial state tax credits for hiring veterans, particularly those who served during Operation Desert Storm, Operation Enduring Freedom, or Operation Iraqi Freedom. This credit can be up to $5,000. Ten percent of the total earnings paid to every qualified veteran hired after January 1, 2010 can be applied to the credit, as long as the veteran worked at least 185 days during the tax year.
There are also financial incentives and tax credits that businesses can take advantage of if they choose to hire individuals with disabilities. For example, if your business chooses to perform on the job evaluations for people with disabilities, those wages can be reimbursed by the state. The same applies to special on the job training that may be required. The Work Opportunity Tax Credit may also be claimed by individuals who hire Supplemental Security Income recipients and vocational rehabilitation candidates.
If your business can take advantage of any of the above tax credits and need information on what paperwork should be filed, or if you have other questions regarding Illinois employment law, record keeping, and hiring practices, we can help. Contact one of the qualified Illinois employment attorneys at the Miller Law Firm, P.C. We can answer any questions you might have, as well as provide your business with valuable legal advice and counsel for the future.