The Work Opportunity Tax Credit (WOTC) is a federal tax incentive designed to encourage businesses to hire individuals from specific groups that have historically faced barriers to employment. Employers who participate in the WOTC program not only support individuals from disadvantaged groups they receive significant tax savings for doing so.

A simple questionnaire is added to your job applicant process which is used to determine if they are a part of one of the designated groups. After implementation, we handle all of the documentation and compliance. Each year, a report is created which provides all of the necessary details to claim the credit on your federal return.

WOTC offers a tax credit to employers who hire individuals from specific targeted groups, including but not limited to:

• Veterans
• Ex-felons
• Long-term unemployed
• Recipients of SNAP, SSI, or TANF
• Summer youth employees

Employer’s Benefits

• Tax Savings: Employers can claim up to $2,400–$9,600 per qualified hire, depending on the employee’s group and hours worked.
• No Cap: There’s no limit to the number of employees for whom you can claim the credit.
• Offset Payroll or Income Tax: Businesses which are subject to income tax apply the credit to income their federal income tax; tax-exempt organizations can offset payroll taxes when hiring qualified veterans.
• Carryover: Unused credits can be carried forward for up to 20 years.

Claims Process

1. Pre-screen applicants before or on the job offer date.
2. Within a specific time frame, submit all necessary forms
3. Once certified, the credit is claimed on the tax return for your business