WOTC Program (Work Opportunity Tax Credit)
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit for employers who hire and retain individuals with significant barriers to employment such as Veterans, long-term unemployed, felons and others on State assistance programs like SNAP, TANF and SSI. WOTC gives employers up to $9,600 in tax credits per employee if the employee meets a certain criteria.
Some of the criteria may include:
- SNAP (food stamps)
- Those in disadvantaged or low-income areas.
- Temporary Assistance for Needy Families (TANF)
- Long-term unemployed
- Supplemental Security Assistance (SSI)
Why Participate in WOTC?
1. Do you have Federal Tax Liability?
2. Do you have a high percentage of hourly employees?
If you answered YES to either of these questions, you should be screening for WOTC.
Let’s Dive Deeper:
- An employer who hires eligible employees in any designated Target Group, qualifies for the credit
- WOTC reduces your company tax liability by up to $9,600 per qualified employee
- There is no limit to the number of tax credit you can claim
- Tax credit earned frees up real company dollars you can use for other programs
Almost 25% of employees in the U.S. qualify for their employers to receive federal tax credits. Want to know if your candidates are WOTC eligible? Contact us to learn more about this service!
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