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.
See how your business can qualify for the Work Opportunity Tax Credit (WOTC) here. And if you are ready to apply for the credit, check out this helpful article. Please be aware that WOTC eligibility is time-sensitive and based on the hire date. Find more information here about when you should apply.
Please note that our Free Employment Tax Credit Screening is accessible in the US only.