The Work Opportunity Tax Credit (WOTC) is a federal tax credit designed to encourage employers to hire individuals from certain disadvantaged groups including veterans, and those receiving government assistance.
This credit provides a great opportunity to support individuals in need while simultaneously reducing their overall tax burden.
With COVID and Previous Levels of Unemployment More and More Job Candidates Qualify for WOTC.
Average Employer Tax Credit Per New Hire is $2,400. This Helps to Offset Recruiting, Screening and Hiring Costs.
Congress and the IRS want businesses to take advantage of these tax incentives. They are important to both the economy and to your bottom line, so it’s important that you take the time to learn about them.
Which Employees Qualify for the Hiring Tax Credit?
For those employees who work at least 400 hours during the first year of employment, the credit is up to 25% of the first-year wages. This will cover the average cost of $2,500 to recruit, hire and train new employees.
Additionally, employers may receive an additional credit of up to $9,600 for certain qualified veterans.