Potential Credit for Business Owners: Brown & Atchison County

Business owners to hire residents of Brown or Atchison County may be eligible to receive a federal tax credit called the Work Opportunity Tax Credit (WOTC). The WOTC provides a tax credit to employers who hires an employee that is a resident of a rural renewal county; Atchison and Brown Counties are two of the counties that fall under this classification.

The credit is:
● 40% of the first $6,000 of wages paid to an employee that works at least 400
hours during the year.
● 25% of wages if a new employee works less than 400 hours but more than 120 hours

The employee must be certified by the state Department of Labor prior to the hire date, Certification is accomplished by completing two documents – IRS Form 8850 Pre-Screening Notice, and Department of Labor ETA Form 9061, Individual Characteristics Form. These are submitted to the state WOTC coordinator with the Kansas Department of Labor.