WOTC is the Federal Work Opportunity Tax Credit program
This program has been around in various forms since the mid-90’s. It is designed to motivate or incentivize employers to hire people of various target groups.
What are some of the groups? Many:
- Veterans qualify
- Food Stamp recipients
- People on TANF (Temporary Assistance to Needy Families)
- Zone Residents
- Long Term Unemployed, etc.
How much are the tax credits for hiring a qualified individual? Credits range from $1,200 to over $9,000 each.
What do I have to do to take advantage of this program? There are several important and time sensitive steps that must be followed in order to capture (and maximize) credits:
- Screen all job applicants on or before day of job offer
- Submit applications to the State Workforce Agency (SWA) according to their prescribed format
- Track / await a certification (or denial) from the SWA
- Calculate tax credit value using qualified employee wages and hours
- Apply tax credit to Federal tax filing
Where can I go to learn more about this program on my own? https://www.doleta.gov/business/incentives/opptax/
What if I don’t want to manage all of this and would like help? Please go to our Contact Us page or Chat with us. We are eager to assist.