WOTC: Want to learn more about how to earn tax credits?
What is The Work Opportunity Tax Credit (WOTC) program?
WOTC is a federally funded program that helps businesses earn tax credits for hiring employees who are classified under specified target groups.
- These groups include individuals who are normally overlooked by employers, often due to social or economic reasons. The program’s goal is to encourage employers to hire these individuals by rewarding companies with tax credits.
Be rewarded for hiring members of the community who are seeking employment and who are in any of the WOTC categories.
What makes it important?
When businesses incorporate WOTC, they are able to save money. By not signing up, they are not taking advantage of this program. When businesses are able to save money with WOTC, they are able to put it towards other areas, such as unemployment, worker’s compensation, and even the Affordable Care Act (ACA). There is no limit to the amount of target group members a business can hire, so the more the better. It’s as simple as that!
So, what should I get out of this?
When a business follows the process of completing the paperwork online or on paper and hires qualifying target group members, then it can anticipate rewards in the form of tax credits. According to the United States Department of Labor maximum tax credit ranges from $1,200 all the way up to $9,600. These numbers depend on which category the employees is in and how many hours they worked in the first year of employment. For employees who are categorized as SNAP (food stamp) recipients, employers can earn tax credits up to $2,400 for each new hire. If you multiply that by 20 new hires, this results in your business receiving a total tax credit savings of $48,000.