If you are a business owner and are having difficulty finding new employees, the IRS has a credit that you can use if you hire an individual from a particular underserved group. The reason for the credit is to incentivize business owners to help create a diverse workforce and help people gain access to good jobs. The credit is limited to the amount of the business income and Social Security tax owed.
A few examples of groups of people covered under this program include veterans, ex-felons, long-term unemployed and SNAP recipients. There are a total of ten groups that qualify for this program. Of course there’s some paperwork involved that will need to be completed. IRS form 8850 is an eligibility form that verifies the employee’s status to be in the program. The IRS does direct employers to their state workforce agency for assistance in hiring and completing the correct paperwork.