What is the Work Opportunity Tax Credit (WOTC)?

The Work Opportunity Tax Credit (WOTC) is a Federal tax incentive for companies that hire applicants who have historically faced obstacles finding a job.

For example, hiring applicants who have been unemployed for a longer time (27+ weeks) or veterans may qualify your business for WOTC.

Employers are able to claim a percentage of each qualified employee’s salary for this tax credit. The average is typically $2,000/hire.

Employers can apply these credits to their previous year’s tax return for a refund from the IRS or to future returns to reduce the amount they will owe next year.

How does my business qualify for WOTC?

Your company must hire a new employee from one of the qualifying groups listed below.

How do I apply for WOTC?

Businesses must apply for WOTC within 28 days of the new employee’s start date.

Usually, businesses must go through a complex application process for WOTC certification through their state’s workforce agency.

However, with WizeHire, our system can automatically screen your new employee to see if they’re eligible.

To screen your new employee, drag their applicant card into the Hired column to start the eligibility screening process.

When someone qualifies, our system will notify you, and our partners at RetroTax can handle all the paperwork for you to apply and file for the credits at no upfront cost.

When should I apply for WOTC?

WOTC eligibility is time-sensitive and based on the hire date. Once you’ve hired a new employee be sure to drag their applicant card into the Hired column to start the automatic WOTC screening process.

To make things simple, even if you’ve hired outside of WizeHire, you can bring your new employee into your dashboard by asking them to reapply for the job on WizeHire and then drag them into the Hired column.

Please note that our Free Employment Tax Credit Screening is in Beta and is accessible in the US only. If you’d like early access please email team@wizehire.com.

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