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Hiring Employees

Hiring Employees with Disabilities

Tax benefits for Hiring the Disabled

Hiring disabled employees may qualify your business for additional tax benefits such as: deduction for costs of removing barriers to the disabled and elderly, disabled access credit and work opportunity tax credit. See the following link on the IRS website:  Tax Benefits for Businesses Who Have Employees with Disabilities

For more information on these tax benefits and to see if you qualify, see Publication 907. For additional information on hiring employees with disabilities, see “Hiring People With Disabilities” (DOL).

The Equal Employment Opportunity Commission has a web site, "Small Employers and Reasonable Accommodation". This site has information for small businesses on accommodating employees with disabilities. The EEOC also has issued a “Primer for Small Business,” which includes general information about the ADA as well as an appendix on federal tax incentives to promote the hiring of persons with disabilities.

The mission of the U.S. Department of Labor (DOL), Office of Disability Employment Policy is to provide leadership to increase employment opportunities for adults and youth with disabilities. The DOL, Wage and Hour Division administers provisions of Federal law allowing employers to pay special minimum wages to workers with severe disabilities.

Important References:

Publication 907 Tax Highlights for Persons with Disabilities
Wage and Hour Fact Sheet #39 The Employment of Workers with Disabilities at Special Minimum Wages
Publication 535, Business Expenses
Publication 954,Tax Incentives for Distressed Communities
Form 8826, Disabled Access Credit (PDF)
Form 5884, Work Opportunity Credit (PDF)
Form 3800, General Business Credit (PDF)
Instructions to Form 3800
Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit (PDF)
Instructions for Form 8850

There is also a wide array of tax benefits available to persons with disabilities, ranging from standard deductions and exemptions to business and itemized deductions to credits. Information about these issues is in Publication 3966, Living and Working with Disabilities (PDF).