Welfare-to-work programs can benefit your business and the welfare recipients in your community. By employing qualified applicants, your business will qualify to receive the Work Opportunity Tax Credit (WOTC) and other tax incentives. You'll also get the opportunity to tap into a pool of qualified applicants.

Most recipients want to work and have the talents and skills to be a valuable member of the workforce. They may have had difficulty attaining employment due to unforeseen circumstances and lack of opportunity. Here's how to get started in a program for welfare-to-work credit:

1. Find out how to get certification for the welfare-to-work credit.

2. Search for qualified job candidates.

3. Apply for welfare-to-work tax credits.

Action Steps
The best contacts and resources to help you get it done

Apply for welfare-to-work tax credits

Your tax liability can be reduced for each employee who meets the qualifications for a welfare-to-work program. Before starting on a welfare-to-work program, find out what the requirements are and download the necessary forms and instructions.

I recommend: The Internal Revenue Service provides the form and instructions necessary to apply for welfare-to-work credits. The U.S. Department of Labor explains what types of employees to hire to qualify for the credit.

Hire a private agency for assistance with the welfare-to-work tax credit

A tax consulting company can assist you with carrying out a welfare-to-work program. It can also help with completing forms necessary to get tax credits.

I recommend: First Advantage Tax Consulting Services is a private company that assists in designing and implementing welfare-to-work plans. WOTC Consultants has assisted companies across the United States with completing tax forms and processing data for welfare-to-work programs.

Find employees who meet the requirements for a federal welfare-to-work program

To be eligible for a tax credit, you must hire employees that belong to one of nine WOTC target groups. Among these groups are: applicants who receive Temporary Assistance to Needy Families (TANF) payments; qualified food stamp recipients; a resident of one of the federally designated Empowerment Zones, Enterprise Communities, Renewal Communities and certain Rural Renewal Counties; a qualified veteran; an individual who completed, or is completing, rehabilitative services from a state certified agency, an Employment Network or the U.S. Department of Veterans Affairs; a qualified ex-felon and recipients of Supplemental Security Income (SSI) benefits. Contact coordinators from these agencies to find qualified job applicants.

I recommend: The address locator from the U.S. Department of Housing and Urban Development helps you find out if a business or residence is located within a Renewal Community, Empowerment Zone or Enterprise Community and can verify tax credit eligibility. The Administration for Children and Families provides a listing of state TANF directors. The Employer Assistance & Recruiting Network (EARN) is a cost-free national employment referral service. Their website, EARNWorks Job Source allows employer members to post jobs that are viewed by employment service providers and job seekers. Download a directory of state WOTC coordinators from the U.S. Department of Labor.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To ensure the success of your welfare-to-work programs, look for state or community sponsored skills training to help employees receive training in vocational and communication skills.