The Commission provides employment services, unemployment insurance, and labor market information including unemployment rates to the State’s workers, employers, and the public.
Tax Credits for Hiring Eligible Employees
The ESC provides information on 2 federal tax credits available to North Carolina employers: the
Work Opportunity Tax Credit and the
Welfare-to-Work Tax Credit. The
Work Opportunity Tax Credit (WOTC) can be taken by private, for-profit North Carolina employers in the year an eligible employee is hired. The specific amount of the credit is determined by the employer's federal tax bracket plus the number of hours worked by the eligible employee, but it is capped at a maximum of $2,400 per eligible employee.
To qualify, a company must hire one or more workers who fit into one of 8 groups that have historically had difficulty finding employment. These groups include: Qualified Veterans, Qualified Ex-Felons, Vocational Rehabilitation Referrals, and Qualified Food Stamp Recipients. The company must apply for the credit through the ESC.
The
Welfare-to-Work Tax Credit (WtW) may be taken over a two-year period by employers who hire workers classified as Long-Term Welfare Recipients. For the company to qualify, the employee must be employed 180 consecutive days or have worked a minimum of 400 hours.
In the first year, the amount of the credit is based upon 35% of up to the first $10,000.00 paid in qualified wages, capped at a maximum credit of $3,500.00. For the second year, the credit is based upon 50% of up to the first $10,000.00 paid in qualified wages, for a maximum second year credit of $5,000.00. The company must apply for the WtW through the ESC.
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Dual Certification is issued by the ESC when an employee meets the criteria of both the WOTC and the WtW credit. However, an employer
cannot claim both tax credits for the same employee in the same taxable year.
For more information, visit the ESC's website at
www.ncesc.com or contact the ESC's local office:
John Wittenstrom, Director 
