The Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from certain targeted groups that have historically faced barriers to employment. These groups include veterans, ex-felons, individuals receiving government assistance, and others.

The WOTC provides a financial incentive to employers who hire from these groups by offering a tax credit of up to $9,600 per employee, depending on the target group they belong to and the number of hours worked.

To be eligible for the credit, the employer must first identify the potential employee as a member of a targeted group and obtain certification from the appropriate state agency or other authorized entity. The employer must also meet other requirements, such as complying with certain recordkeeping and reporting requirements.

Overall, the Work Opportunity Tax Credit is designed to encourage employers to hire individuals who may face challenges in finding employment, and to help these individuals become self-sufficient through meaningful employment.

The requirements for this program are set by the Internal Revenue Service and the U.S. Department of Labor, Employment and Training Administration.

Claiming the WOTC Credit

Contact us for a free consultation to discuss your business, the ways in which you might qualify, and how we can assist with your the Work Opportunity Tax Credit credit claim.