WOTC: A Win-Win

The advantages of participating in the WOTC program bears repeating. The WOTC (Work Opportunity Tax Credit) program is a federally funded incentive program rewarding businesses hiring those from certain groups, helping both employee and employer.

With the WOTC program, after an employee has been employed for at least 400 hours, a business can gain a 40 percent tax credit of that employee’s first-year wages (up to a certain amount).

Not-for-profit businesses are required to hire only qualifying veterans, gaining a 26 percent of those first-year wages after 400 hours.

The amount received for each employee caps out at $9,600, however the number of employees you bring on is limitless, as long as they are qualified hires.

Consider hiring people in the following programs:

  • Temporary Assistance for Needy Families (TANF) recipient
  • Supplemental Nutrition Assistance Program (SNAP) recipients
  • 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 morethan six months
  • Unemployed veterans
  • Veterans receiving SNAP
  • Long-term unemployment recipient

The process is quite simple, with the option of filing online or by mail. It is important to know that a request to participate in the WOTC program has to be made (postmarked or e-filed) within 28 days of the employee’s start date.

Helpful links for filing:

Josh Kendall

Author Josh Kendall

More posts by Josh Kendall