The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers who hire individuals from eligible target groups with significant barriers to employment. Each year, employers claim over $1 billion in tax credits under the WOTC program. The success and growth of this income tax credit for business is beneficial for all who participate, while increasing America’s economic growth and productivity.
- WOTC reduces an employer’s cost of doing business, requires little paperwork, and applying for WOTC is simple.
- Employers can earn a tax credit of 40% of the first $6,000 in wages per employee (depending on the target group of the new employee and the number of hours worked in the first year).
- There is no limit on the number of individuals an employer can hire to qualify to claim the tax credit.
(From the WOTC Program Brochure)
For more information: https://www.doleta.gov/