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WOTC May Become Permanent

WOTC May Become Permanent

WOTC may become permanent

U.S. Senators Sherrod Brown, Rob Portman, Ben Cardin, Roy Blunt, Bill Cassiday, and Bob Mendez introduced the Work Opportunity Tax Credit & Jobs Act in the Senate this week. If the bill is passed, it would make WOTC a permanent addition to the tax code.

WOTC was enacted in 1996 as part of welfare reform and has expanded to include other groups facing significant barriers to hire. The program has expired and been renewed 11 times since inception, with the most recent iteration set to expire on December 31, 2019.

WOTC is typically viewed as a win-win program. It provides a dollar-for-dollar federal tax reduction ranging from $1,200 to $9,600 per employee to any tax-paying employer who hires from certain target groups. It also reduces time employees spend on unemployment, thereby reducing government entitlement spending.

Most employers are already hiring WOTC-eligible employees. However, employers who don’t screen every new hire may be missing out on the savings due to them. The current WOTC target groups are:

  • Qualified IV-A Recipients
  • Qualified Veterans
  • Ex-Felons
  • Designated Community Residents (DCR)
  • Vocational Rehabilitation Referrals
  • Summer Youth Employees
  • Supplemental Nutrition Assistance Recipients (SNAP)
  • Supplemental Security Income (SSI) Recipients
  • Long-Term Family Assistance Recipients
  • Qualified Long-Term Unemployment Recipients

HIREtech helps employers quickly and confidentially screen new hires for WOTC eligibility. Our electronic solution delivers the highest certification rate in the nation – helping our clients maximize their bottom lines. To learn more about our industry-leading WOTC program, contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..

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