Work Opportunity Tax Credit

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Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a federal program that provides tax incentives to employers for hiring and retaining individuals from targeted groups. To claim the credit, an employer must identify a potential hire as being eligible for one of the target groups, on or before the day of the job offer. The credit is open to any tax paying company in the 50 United States, The US Virgin Islands, and Puerto Rico.

Targeted Groups Maximum Credit Available
Veterans $9,600
Ex-Felons $2,400
SNAP (Food Stamp) Recipients $2,400
Long-Term Family Assistance Recipients (LTFAR) $9,000
Long-Term Unemployed (LTU) $2,400
Vocational Rehabilitation Agency Referral $2,400
Summer Youth $1,200
Designated Community Residents $2,400
Supplemental Security Income Recipients $2,400

After identifying a hire as potentially eligible through a screening process that can be fully integrated with a company’s applicant tracking system or on boarding process, the information is populated onto the required Form 8850 and the document can be electronically signed. This is when the HIREtech magic takes over, submitting the documentation to the state workforce agency and diligently following up on the certification status. Credit amounts range, based on hours worked and wages paid - tied to specific target groups. Credit captured can be carried back 1 year and forward 20 years.

Employees must work a minimum of 120 hours and individuals hired as Summer Youth employees must work at least 90 days, between May 1 and September 15, before an employer is eligible to claim hiring incentives.

The HIREtech platforms provides HR professionals with real time data to make important decisions. The system dashboard is mobile friendly and gives HR and Financial executives the power to pull reports and view data in seconds.

HIREtech assists businesses in obtaining the maximum amount of credits. Our dynamic solution gives companies the ability to make real time decisions and continually track their tax credits. For more information about how tax credits can make an impact on your tax liability call HIREtech at 844.HIREtec or email info@HIREtech.com.