Did you know that you could be saving thousands of dollars every year by taking advantage of the Work Opportunity Tax Credit (WOTC) program?
The government offers a special tax incentive to businesses that hire individuals who are deemed to face extra challenges in finding employment. Their definition of qualifying persons is quite broad, and the chances are extremely high that WOTC could save your company money. Maybe even a lot of money!
Participating in WOTC is as easy as submitting two special forms to the government for each qualifying new hire within 28 days of their start date.
The size of your tax credit will depend upon which WOTC criteria your new hires meet, and how long they work for you.
You can receive up to:
- $2,400 for each new adult hire
- $1,200 for each new summer youth hire
- $4,800 for each new disabled veteran hire
- $9,000 for each new long-term family assistance recipient hired over a two-year period
The groups of people who qualify for WOTC are:
- Long term Temporary Assistance for Needy Families (TANF) recipients
- Other TANF recipients
- Qualified food stamp recipients
- Designated community residents
- Summer youth employees
- Qualified veterans
- Vocational rehabilitation referrals
- Qualified ex-felons
- Supplemental Security Income (SSI) recipients
Your employees will even qualify for WOTC if they first worked for you through a staffing agency before joining your company’s payroll! You simply need to submit the proper forms within 28 days of the date that they are placed on your own payroll.
We are always happy to assist you with obtaining the Work Opportunity Tax Credit for your qualifying new hires. If you need help, let us know!
More detailed information on how to get the Work Opportunity Tax Credit:
- Categories: Employer Articles