Employing SWAP Students

Work Opportunities Tax Credit


This website gives you all the information you will need, along with forms and procedures for completing the Work Opportunities Tax Credit. In short this is a federal program that allows employers to claim a tax credit for hiring persons who are eligible for DVR. The employer can claim a maximum $2,400.00 per hire. The credit is figured at 40% of the first year's wages up to $6,000.00 if the individual works at least 400 hours during the year. (40% of 6,000. = 2,400). (The credit is 25% of wages if the person works at least 120 hours but less than 400 hours in the year). The paperwork needs to be completed within 21 days of the date of hire and includes two forms, the IRS 8850 and the ETA 9061, which are signed by the employer and the employee. These need to be sent to the Colorado Department of Labor and Employment. Address can be found at the website.

On the Job Training

This is a program DVR has developed. This needs to be agreed to in writing by DVR, the employer, and the client. The On the Job Training Agreement form needs to be completed in duplicate prior to start date. In addition, the W-9 form needs to be completed by the employer. The OJT allows for reimbursement of wages by DVR to an employer. The employer must agree to hire the individual. The reimbursement can be as much as 75% of the first month's wages, 50% of the second month's wages, and 25% of the third month's wages. An OJT agreement requires that the employer is responsible for training of the individual on the job and therefore an OJT should not be used in conjunction with job coaching or other training sources. It is also understood that the OJT should result in stable employment for the individual paid at full wages by the employer at the end of the OJT agreement.

Employer Stipend

This is also a DVR program. It allows for a reimbursement from DVR to the employer for up to one month of the hired individual's salary. Again, DVR, the employer, and the individual must agree to this in writing and there is a form available for this purpose. In addition, the employer has to complete and submit the W-9 form. The person would actually be hired by the employer up front and paid his or her regular wages. DVR would then reimburse the employer for 100% of those wages for up to one month at the end of the first month of employment. It cannot go for more than one month.