Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit Program rewards employers for hiring applicants who fall into various target groups. Depending on the qualifications of the individual, companies may be eligible to receive $1,200 to $9,600 per eligible employee per year upon hiring.
Ready for the good news? It’s likely that you’re already hiring individuals who meet the criteria for your business to earn these type of credits. On average, 1 in 5 new hires qualify your business for WOTC.
The tax credit may be worth up to $9,600 if your company is hiring from any one of the following groups:
- Qualified Veterans
- A member of a family that is a Qualified Food Stamp Recipient
- A member of a family that is a Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient
- Qualified Ex-Felons, Pardoned, Paroled or Work Release Individuals
- Vocational Rehabilitation Referrals
- Qualified Summer Youths
- Qualified Supplemental Security Income (SSI) Recipients
- Qualified Individuals living within an Empowerment Zone, Enterprise Community, Renewal Community, or Rural Renewal County
- A member of a family that is a Qualified Temporary Assistance for Needy Families (TANF) recipient
- A member of a family that is a Qualified Long Term Temporary Assistance for Needy Families (TANF) recipient
- Qualified Long-Term Unemployment Recipients
You already hire qualified candidates
Hiring incentives or tax credits have been in place since the mid-70’s. They were created by the government to motivate employers to hire job seekers that have difficulty obtaining employment. Tax credits range in value from $1,200 to $9,600 per qualified hire.