WOTC: Work Opportunity Tax Credit for Employers

WOTC is a federal tax credit available for employers that hire and retain individuals with "significant barriers to employment"

Earn up to $9,600 in tax credit in US

Originally the WOTC was set to expire in Dec. 31st, 2019, but recently congress decided to extend the tax credit until the end of 2020. According to the Department of Labor $1 billion is claimed each year under the WOTC program. This is because it gives employers greater incentive to hire candidates that meet the criteria to qualify. In addition to this, individuals that have difficulty finding a job will benefit from this due to the extra motivation to hire them.

What is the WOTC?

The WOTC is a tax credit offered by the government that is offered to small businesses. In order to qualify you must hire individuals with certain disadvantages in finding employment due to their history. These tax credits range from $1,200 to $9,600 for each individual.

How to get WOTC?

In order to receive benefits from WOTC the employer must first hire an individual from the target groups indicated by the IRS. Certain steps must be implemented throughout the hiring process. Including two tax forms that must be filled within 30 days of each new hire that is eligible for the program. Your CPA may or may not have an understanding how to do this although there is plenty of information online that will be useful.

Here are some of the target groups that are eligible for WOTC:

• Qualified Veterans
• Qualified IV-A Recipient
• Ex-Felon
• Supplemental Nutrition Assistance Program
• Qualified Long-Term Unemployment Recipient
• and more

Jackson Square Company is a recruiting agency that specializes in sales. If you are interested in working with us to fill your next position, or you want to learn more about how you can take advantage of the WOTC benefits, give us a call today.