When a business takes advantage of the Work Opportunity Tax Credit (WOTC) program they could receive a tax credit every time they hire a new employee. This federally funded program will reduce your federal income tax liability when you hire unemployed veterans or individuals with documented barriers to employment.
Work Opportunity Tax Credit
Administered by DEW, the WOTC will provide your business with a 40 percent tax credit on eligible employees’ first year of wages after they have worked 400 hours. (Qualifying wage caps apply.)
With absolutely no limit on the number of qualified hires your business can claim, you can receive anywhere from $2,400 to $9,600 for each one of your eligible employees.
The program is simple. You get to make the hiring decision, and all you have to do is complete minimal paperwork to claim the tax credit.
You can benefit form hiring within the following groups:
- Temporary Assistance for Needy Families (TANF) recipient
- Supplemental Nutrition Assistance Program (SNAP) recipients
- Columbia/Sumter Empowerment Zone/Marlboro County Rural Renewal Community residents
- Vocational Rehabilitation or Ticket-to-Work Participants
- Recently released ex-felons
- Supplemental Security Income (SSI) recipients
- Disabled veterans who within the last year were discharged or unemployed for more than six months
- Unemployed veterans
- Individuals with disabilities
- Veterans receiving SNAP
- Long-term unemployment recipient
You can mail or electronically file your requests. Requests must be postmarked or e-filed within 28 days of the employee’s start date.
Take advantage of the WOTC program, and increase your return on investment while helping targeted employees become self-sufficient and earn a steady income.