RI Tax Credit Gives Incentive To Hire Those Out Of Work Long Term

Rhode Island continues to have one of the worst employment statistics in the country, but a new tax credits enacted in 2009 by the RI Legislature could give businesses the incentive they need to fill jobs and hire new employees.

Though enacted in 2009, the unemployment rate in Rhode Island hit a high of 13.4 in February 2010.

In 2010, the unemployment rate has hovered consistently around 12 percent. This is still considerably higher than that national average of 9.6 percent-which was one of the reasons the legislature passed this credit. And while this slight improvement in employment figures means the state is not adding to is unemployment pool, it does indicate that thousands of people simply cannot find employment.

Part of this decline, experts say, is that people have either left the state to find work elsewhere, or have simply given up trying to find a job.

What may seem like bad news, could actually benefit businesses who are ready to hire. they have a huge pool of eager job-hunters. That means businesses can take advantage of a tax credit of $2,400 per person hired when hiring someone who has been out of work for more than 26 weeks. most people collecting unemployment have been out of work for far longer than that 26 week requirement.

To qualify for the tax credit, in addition to being out of work for at least 26 weeks, the new hire must have received unemployment insurance benefits or received public assistance for one year prior to the date of hire, according to the RI Department of Labor and Training (DLT).

In addition, the employer must file an application for this tax credit with the DLT within 30 days the new employee is hired. in other words, if you snooze, you could lose a $2,400 tax credit.

To receive the credit at tax time, the new hire must remain employed for 52 consecutive weeks and work a minimum of 1,820 hours. once the employee has been unemployed for one year and complied with other aspects of the law, the business must contact the DLT for an eligibility determination.

RI Tax Credit Gives Incentive To Hire Those Out Of Work Long Term

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