Work Opportunity Tax Credit (WOTC)

The Work Opportunity Tax Credit (WOTC) is a federal tax credit that rewards employers for hiring new employees from various "targeted groups." The tax credit differs based on which group your employee is in. The tax credit has maximum amounts of up to $1,200, $2,400, $4,800 or $9,600 per qualified employee.

The targeted groups currently available for screening your employees are:

  • A member of a family that is a Qualified Food Stamp Recipient
  • A member of a family that is a Qualified Aid to Families with Dependent Children (AFDC) Recipient
  • Qualified Veterans
  • Qualified Ex-Felons, pardoned, paroled or work release individuals
  • Vocational Rehabilitation Referrals
  • Qualified Supplemental Security Income (SSI) Recipients
  • Long Term Family Assistance Recipient (TANF)
  • Qualified Long-Term Unemployment Recipient

Employers must screen for these qualified employees at the point of hire. Failure to have a proper implementation method and compliance assurance will drastically affect the amount of tax credits that will be available to your company. We ensure that an efficient solution will be provided without burdening your existing human resources staff.

Tax Credit Services will screen your applicants, process the certification paperwork, calculate the federal credits and then produce tax forms and reports for your company.