Overlooked Tax Credit Creates Savings for Kentucky Employers
There is an extremely simple, yet often overlooked, hiring credit that could save Kentucky employers hundreds of dollars in tax incentives today. Overseen by the Kentucky Career Center, the Kentucky Unemployment Tax Credit (KUTC) Program offers a $100 credit per qualified unemployed individual to a business that hires employees who have been unemployed for the previous 60 days. The credit offsets the Kentucky income tax liability of the business.
To claim the credit, the employer would complete Form OET-UTC-1. Portions of this form should be completed and then signed by the employee. As many of these details are discussed during the hiring process, this would be the optimum time to include the completion of this form. Oftentimes, this credit is not utilized because the paperwork completion process is not completed at the beginning of the employee’s job placement, and then gets lost in the shuffle.
After the qualified individual has worked for more than 180 days, the credit should be valid and certification should be received. If the application was not completed or the individual does not meet the requirements, a denial letter should be received.
If you have more questions about the Kentucky Unemployment Tax Credit Program or Form OET-UTC-1, have a Barnes Dennig Tax Consultant reach out to you today.