Work Opportunity Tax Credit
Growing your business’ bottom line and helping your employees stay employed.
Work Opportunity Tax Credit
Growing your business’ bottom line and helping your employees stay employed.
Work Opportunity Tax Credit
Growing your business’ bottom line and helping your employees stay employed.
The Work Opportunity Tax Credit (WOTC) is a federal program for employers large and small. It encourages the hiring of targeted groups of workers who historically struggled to find employment.
%
%
$2,150
of new hires qualify for WOTC Credits
improvement on cashflow for your business
per eligible new hire on average
All data as of September 2021 unless otherwise stated.
The Work Opportunity Tax Credit (WOTC) is a federal program for employers large and small. It encourages the hiring of targeted groups of workers who historically struggled to find employment.
%
of new hires qualify for WOTC Credits
%
improvement on cash flow for your business
$2,150
per eligible new hire on average
All data as of September 2021 unless otherwise stated.
Our WOTC Program can maximize your profitability and reduce your Federal tax liability.
Big or small business. 1-in-5 new hires are potentially eligible.
WOTC Target Groups
Calculate Your WOTC
The process is simple. Let’s look at how it works.
We streamline the process through seamless integration.
Primary Industries Served
Grow your business’ bottom line. Let’s get started.
Grow your business' bottom line. Let's get started.
WOTC Optimized
WOTC Optimized
Whether your company hires blue-collar or white-collar workers, 1-in-5 new hires are potentially eligible. Maximize your profitability and reduce your Federal tax liability by capturing these financially beneficial Work Opportunity Tax Credits (WOTC).
Organizations and companies in industries such as temporary staffing, transportation, warehousing, manufacturing, distribution, retail, food service and healthcare (as well as other businesses which rely on an hourly-wage and entry-level workforce) are well suited to benefit from WOTC because of the nature of a higher turn-over rate for their industries.
The credit represents a permanent reduction in income tax and directly reduces a business’s effective tax rate. Your business will increase profits and obtain additional cash flow by leveraging this tax credit.
There is no limit to the amount of credit available through the program as a whole or to a single employer.
WOTC Optimized
Whether your company hires blue-collar or white-collar workers, 1-in-5 new hires are potentially eligible. Maximize your profitability and reduce your Federal tax liability by capturing these financially beneficial Work Opportunity Tax Credits (WOTC).
Organizations and companies in industries such as temporary staffing, transportation, warehousing, manufacturing, distribution, retail, food service and healthcare (as well as other businesses which rely on an hourly-wage and entry-level workforce) are well suited to benefit from WOTC because of the nature of a higher turn-over rate for their industries.
The credit represents a permanent reduction in income tax and directly reduces a business’s effective tax rate. Your business will increase profits and obtain additional cash flow by leveraging this tax credit.
There is no limit to the amount of credit available through the program as a whole or to a single employer.
WOTC Targeted Groups
WOTC Targeted Groups
There are a number of target groups for employers to hire eligible employees from. Below are the WOTC Targeted Groups:
IV-A Recipient
An individual who is a member of a family receiving assistance under a state plan approved under part A of title IV of the Social Security Act relating to Temporary Assistance for Needy Families (TANF). The assistance must be received for any 9-month period during the 18-month period ending on the hiring date.
Veterans
-
A member of a family receiving assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps) for at least 3 months during the first 15 months of employment.
-
Unemployed for a period totaling at least 4 weeks (whether or not consecutive) but less than 6 months in the 1-year period ending on the hiring date.
-
Unemployed for a period totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.
-
A disabled veteran entitled to compensation for a service-connected disability hired not more than one year after being discharged or released from active duty in the U.S. Armed Forces.
-
A disabled veteran entitled to compensation for a service-connected disability who is unemployed for a period totaling at least six months (whether or not consecutive) in the one-year period ending on the hiring date.
Ex-Felon
• Being convicted of a felony or
• Being released from prison from the felony
Designated Community Resident (DCR)
-
Is at least 18 years old and under 40,
-
Resides within one of the following:
-
An Empowerment zone
-
An Enterprise community
-
A Renewal community
-
And continues to reside at the locations after employment.
-
Vocational Rehabilitation Referrals
A “vocational rehabilitation referral” is a person who has a physical or mental disability and has been referred to the employer while receiving or upon completion of rehabilitative services pursuant to:
-
-
A state plan approved under the Rehabilitation Act of 1973 or
-
An Employment Network Plan under the Ticket to Work program, or
-
A program carried out under the Department of Veteran Affairs.
-
Summer Youth Employees
A “qualified summer youth employee” is one who:
-
Is at least 16 years old, but under 18 on the date of hire or on May 1, whichever is later, and
-
Is only employed between May 1 and September 15 (was not employed prior to May 1) and
-
Resides in an Empowerment Zone (EZ), enterprise community, or renewal community.
SNAP Recipients
-
At least 18 years old and under 40, and
-
A member of a family that received SNAP benefits for:
-
the previous 6 months or
-
at least 3 of the previous 5 months.
-
SSI Recipients
An individual is a “qualified SSI recipient” if a month for which this person received SSI benefits is within 60 days of the date this person is hired.
Long-Term Family Assistance Recipient
-
Received assistance under an IV-A program for a minimum of the prior 18 consecutive months; or
-
Received assistance for 18 months beginning after 8/5/1997 and it has not been more than 2 years since the end of the earliest of such 18-month period; or
-
Ceased to be eligible for such assistance because a Federal or State law limited the maximum time those payments could be made, and it has been not more than 2 years since the cessation.
Long-Term Unemployment Recipient
A qualified long-term unemployment recipient is one who has been unemployed for not less than 27 consecutive weeks at the time of hiring and received unemployment compensation during some or all of the unemployment period.
WOTC Targeted Groups
There are a number of target groups for employers to hire eligible employees from. Below are the WOTC Targeted Groups:
IV-A Recipient
An individual who is a member of a family receiving assistance under a state plan approved under part A of title IV of the Social Security Act relating to Temporary Assistance for Needy Families (TANF). The assistance must be received for any 9-month period during the 18-month period ending on the hiring date.
Veterans
-
A member of a family receiving assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps) for at least 3 months during the first 15 months of employment.
-
Unemployed for a period totaling at least 4 weeks (whether or not consecutive) but less than 6 months in the 1-year period ending on the hiring date.
-
Unemployed for a period totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.
-
A disabled veteran entitled to compensation for a service-connected disability hired not more than one year after being discharged or released from active duty in the U.S. Armed Forces.
-
A disabled veteran entitled to compensation for a service-connected disability who is unemployed for a period totaling at least six months (whether or not consecutive) in the one-year period ending on the hiring date.
Ex-Felon
• Being convicted of a felony or
• Being released from prison from the felony
Designated Community Resident (DCR)
-
Is at least 18 years old and under 40,
-
Resides within one of the following:
-
An Empowerment zone
-
An Enterprise community
-
A Renewal community
-
And continues to reside at the locations after employment.
-
Vocational Rehabilitation Referrals
A “vocational rehabilitation referral” is a person who has a physical or mental disability and has been referred to the employer while receiving or upon completion of rehabilitative services pursuant to:
-
-
A state plan approved under the Rehabilitation Act of 1973 or
-
An Employment Network Plan under the Ticket to Work program, or
-
A program carried out under the Department of Veteran Affairs.
-
Summer Youth Employees
A “qualified summer youth employee” is one who:
-
Is at least 16 years old, but under 18 on the date of hire or on May 1, whichever is later, and
-
Is only employed between May 1 and September 15 (was not employed prior to May 1) and
-
Resides in an Empowerment Zone (EZ), enterprise community, or renewal community.
SNAP Recipients
-
At least 18 years old and under 40, and
-
A member of a family that received SNAP benefits for:
-
the previous 6 months or
-
at least 3 of the previous 5 months.
-
SSI Recipients
An individual is a “qualified SSI recipient” if a month for which this person received SSI benefits is within 60 days of the date this person is hired.
Long-Term Family Assistance Recipient
-
Received assistance under an IV-A program for a minimum of the prior 18 consecutive months; or
-
Received assistance for 18 months beginning after 8/5/1997 and it has not been more than 2 years since the end of the earliest of such 18-month period; or
-
Ceased to be eligible for such assistance because a Federal or State law limited the maximum time those payments could be made, and it has been not more than 2 years since the cessation.
Long-Term Unemployment Recipient
A qualified long-term unemployment recipient is one who has been unemployed for not less than 27 consecutive weeks at the time of hiring and received unemployment compensation during some or all of the unemployment period.
WOTC, How does it work?
WOTC, How does it work?
We make it easy as possible to maximize and claim your Work Opportunity Tax Credit (WOTC) using four simple steps:
1. Screen your applicants
This is important to determine who qualifies as a WOTC candidate. We have an electronic survey that can plug into your current hiring process to make this easy.
2. Certify eligible employees
Those screened as WOTC eligible from Step 1 need to be certified by the State Workforce Agency. We do this on your behalf – giving your state the information they need to certify the employee. In some states, it may take several months to certify the candidates – but it’s worth the wait!
3. Track credits earned
Your WOTC-eligible employees earn a credit based on hours worked and wages earned. If they are certified by the state, they still need to work at least 120 hours before they generate a credit. Because of this, we’ll work with you to get regular payroll feeds that show hours worked and wages earned. We will report back to you on a regular basis the amount of the credit that has been earned (this is usually important for tax planning purposes).
4. Claim your tax credit with the IRS
Before filing your tax return each year, we’ll complete the necessary tax form for your CPA. This credit will flow through to the owners to use on their personal returns.
WOTC, How does it work?
We make it easy as possible to maximize and claim your Work Opportunity Tax Credit (WOTC) using four simple steps:
1. Screen your applicants
This is important to determine who qualifies as a WOTC candidate. We have an electronic survey that can plug into your current hiring process to make this easy.
2. Certify eligible employees
Those screened as WOTC eligible from Step 1 need to be certified by the State Workforce Agency. We do this on your behalf – giving your state the information they need to certify the employee. In some states, it may take several months to certify the candidates – but it’s worth the wait!
3. Track credits earned
Your WOTC-eligible employees earn a credit based on hours worked and wages earned. If they are certified by the state, they still need to work at least 120 hours before they generate a credit. Because of this, we’ll work with you to get regular payroll feeds that show hours worked and wages earned. We will report back to you on a regular basis the amount of the credit that has been earned (this is usually important for tax planning purposes).
4. Claim your tax credit with the IRS
Before filing your tax return each year, we’ll complete the necessary tax form for your CPA. This credit will flow through to the owners to use on their personal returns.
We integrate with your systems
We integrate with your systems
We integrate with many Applicant Tracking (ATS) and Payroll Systems. That way we can streamline the credit claiming process. We're always adding to our integration list and below are just a few of the systems we integrate with:
Don't see your ATS or Payroll providers on the list? We can help.
We integrate with your systems
We integrate with many Applicant Tracking (ATS) and Payroll Systems. That way we can streamline the credit claiming process. We're always adding to our integration list and below are just a few of the systems we integrate with:
Don't see your ATS or Payroll providers on the list? We can help.
Primary industries served
Primary industries served
We serve many businesses across a wide variety of sectors. Below are some of the most positively impacted industries when it comes to claiming the Work Opportunity Tax Credit (WOTC). Learn more about how we've specifically helped businesses in these industries by visitng our resources page.
Healthcare
Staffing
Assisted Living
Trucking
Construction
Call Center
Retail
Hospitality
Restaurants
Don't see your industry? We can help.
Primary industries served
We serve many businesses across a wide variety of sectors. Below are some of the most positively impacted industries when it comes to claiming the Work Opportunity Tax Credit (WOTC). Learn more about how we've specifically helped businesses in these industries by visitng our resources page.
Healthcare
Staffing
Assisted Living
Trucking
Construction
Call Center
Retail
Hospitality
Restaurants
Don't see your industry? We can help.