New form for employers hiring from low-income groups.The Internal Revenue Service developed form 8850 to help employers hiring certain low-income individuals determine if they are eligible for a tax credit. The Work Opportunity Credit Pre-Screening Notice and Certification Request was developed for the "work opportunity tax credit" in the Small Business Job Protection Act of 1996. The form is available through the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. home page, http://www.irs.ustreas. gov, or by calling the IRS toll-free at 800-829-3676. Under the 1996 act, employers hiring new employees from one of seven targeted low-income groups can receive a tax credit of up to $2,100 per employee. The credit applies to employees who start work after September 30, 1996, and before October 1, 1997, and was intended to give Congress, the Treasury Department and the Department of Labor the opportunity to assess the credit's effectiveness as a hiring incentive. The target groups include * Qualified recipients of Aid to Families with Dependent Children Aid to Families with Dependent Children (AFDC) was the name of a federal assistance program in effect from 1935 to 1997,[1] which was administered by the United States Department of Health and Human Services. . * Qualified veterans. * Qualified exfelons. * High-risk high-risk adjective Referring to an ↑ risk of suffering from a particular condition Infectious disease Referring to an ↑ risk for exposure to blood-borne pathogens, which occurs with blood bank technicians, dental professionals, dialysis unit youth. * Vocational rehabilitation Noun 1. vocational rehabilitation - providing training in a specific trade with the aim of gaining employment rehabilitation - the restoration of someone to a useful place in society referrals. * Qualified summer youth employees. * Qualified food stamp food stamp n. A stamp or coupon, issued by the government to persons with low incomes, that can be redeemed for food at stores. Noun 1. recipients. Form 8850 must be signed by both the employer and employee and submitted to the state employment service agency for certification no later than three weeks after the employee begins work. The IRS recommends the employer keep copies of the form, transmittal letters Transmittal letter A letter describing the contents and purpose of a transaction delivered with a security that is changing ownership. and any other documentation related to the tax credit for three years after claiming the Credit on a tax return. |
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