The Work Opportunity Tax Credit (WOTC) is a federal tax incentive offered to businesses that hire individuals within specific target groups. Individuals within these target groups are known to experience barriers to employment, so by incentivising businesses to hire, both the business and the individual benefit. The tax credits can be quite significant. Businesses could earn up to $9,600 per eligible employee with no limit to the number of eligible employees that can be claimed.
WOTC can be confusing and overwhelming, but it doesn’t have to be. Use the resources on this page to increase your WOTC chops.
WOTC Articles
Tax Credits for Hiring Veterans
Employers can get very generous tax breaks for hiring veterans but only if they understand how to screen new hires and file the right documentation in a timely manner. Depending on the size of an organization, rate of new hires, and average wages paid to employees, tax credits could equal tens of thousands of dollars per year…
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Second Chances Could Mean Big Benefits for Employers
Some business owners are finding opportunity by giving ex-offenders a second chance. With unemployment low and the struggle to find candidates for open positions high, some business owners are broadening their scope to include ex-offenders. Not only does this help fill open positions, but it also opens the door to valuable tax credits.
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Does the Work Opportunity Tax Credit (WOTC) Apply to Your Business?
If you’re not taking full advantage of the Work Opportunity Tax Credit (WOTC) for your business, you could be leaving money on the table. Are you concerned or confused about how to identify eligible employees, the amount of the potential credit, the relevance of WOTC for your business, etc? The information and tools to make WOTC screening and processing easy as pie are literally at your fingertips.
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Are There Tax Benefits for Hiring People with Disabilities?
Yes, the IRS offers tax incentives for hiring people with disabilities. The government designs tax credits to encourage employers to hire disadvantaged individuals who might otherwise have difficulty finding gainful employment. Businesses that make a concerted effort to identify and hire qualifying workers can reap the benefits of thousands of dollars—potentially hundreds of thousands—in Work Opportunity Tax Credits and other incentives that reduce federal tax liability or payroll costs.
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What are WOTC Target Groups and How is a Target Group Determined for a New Hire?
If you haven’t been taking advantage of Work Opportunity Tax Credits or are asking yourself “what are WOTC target groups?”, there’s a good chance that your organization is missing out on some important tax incentives. The government defines target groups as categories of people who face life circumstances that make it challenging for them to find gainful employment.
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