Work Opportunity Tax Credit (WOTC) Program

What is WOTC?

The Work Opportunity Tax Credit (WOTC) is a federal financial incentive available to employers who hire individuals from certain target groups that have consistently faced significant barriers to employment.

WOTC helps targeted workers move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers, while participating employers are able to reduce their general tax liability. Click here to view the WOTC brochure. 
 

What is a qualifying WOTC target group?

Employers can benefit from hiring individuals who may qualify through the following target groups:

  • Temporary Assistance for Needy Families (TANF) recipient
  • Supplemental Nutrition Assistance Program (SNAP) recipients
  • Empowerment Zone residents
  • 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
  • Veterans receiving SNAP
  • Long-term unemployment recipient

How can you leverage WOTC like Bill?

Bill had been searching for a job, but not having any success due to his recent judicial involvement. Bill learned about the WOTC tax credit and began to let prospective employers know that he may be part of a qualified target group in the WOTC program. He leveraged the program to his advantage by making employers aware of his eligibility, and soon received an offer of employment. Bill completed the IRS Form 8850 and ETA Form 9061 for the new employer. The new employer submitted both forms to the DEW WOTC office within 28 days of Bill’s start date. The employer received a certification and was eligible to take a tax credit for $2,400. Afterwards, the employer hired 10 more qualified applicants and was certified to take an additional $24,000 in WOTC tax credits. The employer is now in a financial position to hire more workers because the WOTC tax credit program increased his return on investment.

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