WOTC & Hiring Incentives
Hiring Incentives fall under the Work Opportunity Tax Credit (WOTC). This is a Federal income tax credit provided to private sector employers who hire veterans and individuals from other designated target groups.
Hiring incentives date back to the 1940’s, when legislation was passed to assist returning veterans and has since grown to include job creation stimulus and help those with lesser economic opportunity. Passage of the PATH Act ensures these employer tax benefits continue through 2019 and more workers than ever qualify, including:
- Unemployed Veterans (including disabled Vets)
- Food Stamp (SNAP) Recipients
- Qualified Long-Term Unemployment Recipients
- Temporary Assistance for Needy Families (TANF) Recipients
- Designated Community Residents (living in Empowerment Zones or Rural Renewal Counties)
- Vocational Rehabilitation Referred Individuals
- Supplemental Security Income Recipients
- Summer Youth Employees (living in Empowerment Zones)
Unfortunately, a majority of companies are simply unaware that these types of hiring benefits exist or mistakenly believe their business is too small, in the wrong industry or just doesn’t hire enough employees per year to participate. None of which is true.
Employers can receive between $1200 to $9600 per employee, depending on which target group they belong to. This can add up to tens of thousands of dollars in direct credits, which can be taken against a company’s Federal tax liability.
Historically though, filing for WOTC has been a bureaucratic nightmare, with considerable paperwork shuffling and a tight deadline, leading to very low success rates.
Our new self-service WOTC portal has changed all that, by automating the entire submission process.
To find out how much your company could be claiming in hiring incentives, please click here.