When an organization like yours hires someone in a targeted group, you can earn a tax credit between $2,400 and $9,600. This video walks you through the Work Opportunity Tax Credit (often called WOTC). The qualifying rules are pretty straightforward.
For each eligible person you hire, you earn a general business credit between $2,400 and $9,600, which offsets your alternative minimum tax.
Generally, the credit is available when you hire:
- Recipients of food stamps
- Designated residents of targeted zones
- Temporary assistance for needy family recipients
- People who have been unemployed for six months or more
Paperwork must be filed within 28 days after the employee’s start date to qualify. All private sector industries are eligible, including health care, agribusiness, contractors, hospitality, manufacturing, and the retail sector.
Nonprofit organizations are eligible only when hiring veterans.
How we can help
To determine if you have eligible employees, give the filing over to people who’ve been there before. We know your industry, the forms, and the appeals process. Best of all, we assess and identify qualified applicants for free — you only pay us for getting the candidates qualified on your behalf.
WOTC is just one of many federal tax strategies that may be available to you. CliftonLarsonAllen’s professionals are industry focused and will work with you to help identify potential saving opportunities in your organization.