You may be leaving money on the table (between $2,400 to $9600 per employee) if you employ individuals from disadvantaged backgrounds or groups that need job-finding assistance, but you don’t have a Work Opportunity Tax Credit (WOTC) program. Especially for workers in the following categories:
- Unemployed or disabled military veterans.
- Long-term unemployed.
- Temporary Assistance for Needy Families (TANF) or SNAP recipients.
- Residents living in designated economically struggling communities.
- People with disabilities who have completed or are completing vocational rehabilitation.
- People with criminal histories.
- Supplemental Security Income recipients.
- Teens from designated empowerment zones employed for summer work.
What?
WOTC is an incentive for businesses to employ individuals who may have traditionally found it difficult to secure a job; it encourages employers to expand their applicant pools. It was recently reauthorized and extended to the end of 2025. All the rules and procedures for accessing the credit are unchanged.
Who?
It’s estimated that as many as 20-30% of employees in almost any industry qualify for WOTC. Businesses that have a lot of turnover, or that do project or seasonal work should take a look at their hiring strategy and look for extra incentives to do what they are already doing. This would be restaurants, construction, general labor, and even retail - any business, really.
How?
If you employ people in these groups, let us help you go after the credits you earn. We love helping employers leverage technology to automate things like WOTC and we help businesses habituate the best HR practices that improve the bottom line.
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