Incentives To Hire People With Disabilities
More than good corporate citizenship.
InspiriTec has learned first-hand that employing people with disabilities is more than good corporate citizenship. It's an answer to a business problem.
Finding and keeping productive workers is necessary to remain competitive in today's marketplace, and will become more difficult in the future due to society's changing demographics; such as the aging population. With over 9 million unemployed, Americans with disabilities represents one of the largest groups seeking work. At the same time, there are many business reasons for companies to develop aggressive disability employment programs.
The Business Case for Hiring Persons with Disabilities:
- People with disabilities possess valuable problem-solving skills
because they are experts in finding creative ways to perform tasks others
may take for granted.
- Employees with disabilities have proven to be dependable, dedicated,
hardworking and productive employees.
- Many businesses report that the experience of working with people with
disabilities increases every employee's morale and productivity.
- After acquiring a disability, employees who return to work after being
rehabilitated help reduce a company's training and hiring costs and lower
insurance premiums. Employers who have return-to-work programs establish a
culture that regards employees as valuable not disposable.
- Employees with disabilities reflect the customer base and can help craft
effective marketing strategies to reach this lucrative market for
companies that hire them.
- 73% of companies hiring employees with disabilities report that no
accommodations were required. When accommodations are required they report
the cost on average is $500 or less. Companies also report that employees
with disabilities have better retention rates, reducing the high cost of
turnover.
- Employee training costs can sometimes be offset through various
state and federal vocation rehabilitation training assistance programs.
- Tax breaks are available to employers hiring people with disabilities.
(for details see, link) Three example tax breaks are:
- Small Business Tax Credit: IRS Code Section 44, Disabled Access Credit
Small businesses may take an annual tax credit for making their businesses
accessible to persons with disabilities. The credit is 50 percent of
expenditures over $250, not to exceed $10,250, for a maximum benefit of
$5,000.
- Architectural/Transportation Tax Deduction: IRS Code Section 190,
Barrier Removal - Businesses may take an annual deduction for expenses
incurred to remove physical, structural, and transportation barriers for
persons with disabilities at the workplace. Tax deduction of up to $15,000 a year for expenses incurred to
remove barriers for persons with disabilities.
- Work Opportunity Tax Credit (WOTC) -The
Work Opportunity Tax
Credit (WOTC), Employers who hire SSI recipients or certified
vocational rehabilitation (VR) referrals may be able to claim the WOTC.
An employer may take a tax credit of up to 40 percent of the first
$6,000, or up to $2,400, in wages paid during the first 12 months for
each new hire.
- Small Business Tax Credit: IRS Code Section 44, Disabled Access Credit
Small businesses may take an annual tax credit for making their businesses
accessible to persons with disabilities. The credit is 50 percent of
expenditures over $250, not to exceed $10,250, for a maximum benefit of
$5,000.
