When you are hiring new employees, are you taking advantage of available tax credits from hiring target groups? The Work Opportunity Tax Credit (WOTC) was created to assist potential employees facing barriers to employment.
This program puts Americans back to work by supporting employers with tax credits for offering opportunities to specific target groups. Businesses are incentivized to hire candidates receiving government assistance, helping individuals achieve self-sufficiency.
Work Opportunity Tax Credit: Target Groups
This credit is offered on a federal level, with distribution working through the state. The new hire credit can range between $2,400 to $9,600 per employee, depending on the target group. This credit might be available for employers who hire individuals from these target groups:
- Disabled or unemployed Veterans
- Families that receive food stamps (Supplemental Nutrition Assistance Program)
- Families that receive short-term or long-term Temporary Assistance (welfare)
- Residents living in a rural renewal county
- “Summer youth” living in an empowerment zone (ages 16 and 17 years old)
- People receiving Supplemental Security Income
- Unemployed individuals without work for 27 consecutive weeks, which received unemployment pay during this time
Not only does this program support individuals facing barriers to employment, but it also incentivizes diversity in the workplace. As these employees move into self-sufficiency, they become contributing taxpayers and are no longer in need of economic dependency.
Accessing WOTC Benefits
These tax credits are offered to offset your cost for recruiting, training, and onboarding new employees within these target groups. No cap is placed on the number of eligible employees that can be hired or the tax credits that your business can receive each year.
If your company is preparing to hire new employees, or you are anticipating future growth that will require more hires, then it’s the perfect time to leverage WOTC tax credits. Our team is here to help you find ways to boost your bottom line by utilizing available tax credits.
At ReFOCUSed Business Consulting, we can help you implement a program for WOTC identification and qualification in your hiring process. We’ll help you navigate the various documentation, policies, deadlines, and other requirements that need to be met to qualify for these tax credits. Contact our team to learn more about how your business can benefit from these services.