With many businesses facing a tight job market, the IRS reminds employers to check out a valuable tax credit available to them for hiring long-term unemployment recipients and other groups of workers facing significant barriers to employment, according to www.irs.gov.
During National Small Business Week, the IRS is highlighting tax benefits and resources designed to help new and existing small businesses. For any business now hiring, the Work Opportunity Tax Credit may help.
Legislation enacted in December 2020 extended the tax credit through the end of 2025. This long-standing tax benefit encourages employers to hire workers certified as members of any of 10 targeted groups facing barriers to employment. With millions of U.S. workers unemployed at some point since the COVID-19 pandemic began, the IRS noted one of these targeted groups is long-term unemployment recipients who have been unemployed for at least 27 consecutive weeks and have received state or federal unemployment benefits during part or all of that time.