Work Opportunity Tax Credit

Work Opportunity Tax Credit, WOTC, WOTC Target Groups, Work Opportunity Tax Credit Program, Work Opportunity Tax Credit VeteransMaximize Your Company’s Tax Credit Potential

Every year companies miss out on millions of dollars in tax credits for something they do every day – hiring new employees. The Work Opportunity Tax Credit (“WOTC”) is a Federal tax incentive program to encourage employers to hire and retain employees from specific target groups such as:

  • veterans
  • qualified youth
  • social assistance recipients

Although these tax credits range in value depending on the category of employee and length of employment, your company can receive a tax credit of up to $9,600 per new hire.

How the WOTC Program Works

The WOTC program requires the completion of several forms by the employee at the time they are hired. These forms need to be received by the correct state agency within 28 days of hire. Our tax credit experts will work with your company to streamline the documentation process in order to minimize your work, but maximize the credits. We offer flexible options for you to process the necessary documentation in a timely manner in order to receive approval of your credits. Many state agencies have a back-log of forms to process. Our team will keep your data and information organized, resolve any documentation discrepancies, and follow-up with the government on a regular basis to ensure your credits are approved in a timely manner.

One-Time Retroactive Opportunity

The PATH Act recently extended the WOTC to December 31, 2019. The Act also allowed companies to retroactively obtain the credit for all new hires between the period of January 1, 2015 – August 31, 2016. In order to meet the qualifications necessary to obtain the credits, all completed paperwork needs to be received by September 28, 2016. For those companies that have not taken advantage of the WOTC in the past, this is a “small” window of opportunity to obtain significant tax credit for your new hires that are within the targeted groups and have been hired since January 1, 2015.